A excessive dividend yield may be engaging – relying on whether or not the payout lasts. In any case, no dividend is ever set in stone. So whereas various UK shares yield over 9%, they won’t all keep that means. Vodafone, for instance, with its 10.3% yield, has mentioned it should halve its dividend per share.

However some shares yield over 9% and have been rising their dividends yearly lately.

These usually are not minnows: like Vodafone, the 2 I focus on beneath are each members of the flagship FTSE 100 index of main shares.

They’ve each additionally been rising their dividends yearly lately. That’s not assured to proceed, however I do take it as an indication of administration confidence within the companies.

M&G

The primary of the pair is a share I’ve in my portfolio in the mean time: asset supervisor M&G (LSE: MNG).

Since itemizing as a standalone firm 5 years in the past, I believe the enterprise has carried out effectively. It has generated sizeable money flows and raised its dividend yearly according to its coverage of sustaining or rising the payout per share every year. On prime of that, it purchased again a lot of shares, that means it has been in a position to pay the next dividend per share with no need to place up the entire value on the identical stage.

Regardless of that, the share continues to really feel considerably unloved. It’s down 5% in 5 years and the present yield is 9.2%.

That fits me wonderful as I’m glad to hold onto it and hopefully hold incomes sizeable dividends. Backing them up are strengths together with a big finish market, sturdy model, and buyer base stretching into the tens of millions throughout a few dozen markets.

The underwhelming share price could possibly be a sign that different buyers are extra involved than I’m concerning the dangers right here. These embody sturdy competitors and the chance that any important market downturn might result in shoppers pulling funds, hurting earnings. On stability, I believe the 9.2% yield is an efficient reward for me given these dangers.

Phoenix

The second share is one I don’t personal however that I believe is value buyers contemplating from an revenue perspective: Phoenix (LSE: PHNX).

The insurer operates underneath various completely different manufacturers and so its buyer base of tens of millions is massive. In some methods this can be a easy enterprise: demand is massive and pretty resilient, the mandatory experience acts as a barrier to entry and the massive sums of cash concerned imply that even modest commissions or charges can quickly add up. Phoenix advantages from its manufacturers, massive buyer base, and economies of scale.

The corporate’s progressive dividend coverage means it goals to maintain elevating its dividend per share yearly because it has performed for a couple of years already.

Will that occur? One danger I see is any severe property market correction consuming into the worth of Phoenix’s mortgage ebook. That would have a unfavourable affect on earnings.

However with a 9.3% yield, I just like the revenue prospects of proudly owning Phoenix and it’s on my watch listing.