The FTSE 100 is up greater than 12% over the past 12 months however continues to be filled with great-value earnings shares, a lot of which supply ultra-high dividend yields.

Two blue-chips yield greater than 9% a 12 months, smashing the return on money or bonds. Whereas dividends are by no means assured, I believe they could show sustainable. I personal each shares and I’m eager to purchase extra earlier than they go ex-dividend on 26 September.

Insurance coverage conglomerate Phoenix Group Holdings (LSE: PHNX) gives one of many highest trailing yields on your entire index at 9.36%. It additionally has a reasonably good observe document of accelerating shareholder payouts, 12 months after 12 months, as this desk exhibits.

Chart by TradingView

Is the Phoenix dividend sustainable?

To fund this shareholder largesse, an organization must generate heaps of money. Fortunately, Phoenix has been doing nicely on this entrance, beating its personal targets to hit £2bn final 12 months.

The share price won’t ever fly nevertheless it did climb 4.34% in August. Over one 12 months, it’s up 10.02%. OK so it’s hardly Nvidia-style development , however throw within the yield and I’m a possible complete return of round 20% a 12 months.

Phoenix should work arduous to maintain posting gross sales and money movement, because it operates within the mature and aggressive UK insurance coverage market. There are new development alternatives rising, notably in bulk annuities, nevertheless it’s not the one one chasing them.

Trading at 17.3 occasions earnings, the shares aren’t super-cheap. That’s simply above the FTSE 100 common P/E of 15.3 occasions. Nonetheless, I believe there’s an actual alternative right here. As rates of interest are lower, the earnings from money and bonds will inevitably fall. That may make high-yielders like this one seem much more engaging.

The identical goes for my second high-income choose for September, wealth supervisor M&G (LSE: MNG). This additionally has a bumper trailing dividend yield, solely marginally behind Phoenix at 9.19% a 12 months.

Can M&G afford its sky-high dividend too?

When M&G’s final dividend hit my buying and selling account on 13 Could, I actually knew about it. My 3,289 shares paid me £406.77, which I reinvested straight again into the inventory, thereby selecting up one other 196 M&G shares. They’ll pay me dividends too, in future, and I’ll reinvest each penny to construct up my stake.

The draw back is that I don’t count on speedy dividend development going ahead, provided that M&G solely lifted the 2023 payout by a measly 0.1p to 19.7p. Let’s see what the chart says.

Chart by TradingView

The M&G share price is definitely up 12.93% within the final 12 months, so once more, I’m heading for a 12-month complete return of greater than 20%. The shares have underperformed for the reason that group was spun off from insurer Prudential in 2019, however I’m hoping for higher days when financial and inventory market sentiment picks up.

Once more, M&G shares have been cheaper once I purchased them. Right this moment they commerce at 16.8 occasions earnings, simply above the FTSE 100 common. That gained’t cease me shopping for them although. I simply must scrape the cash collectively earlier than they go ex-divi on 26 September. In any other case I’ll kick myself for lacking out on but extra dividends.