Earnings shares have turn out to be my consolation blanket in recent times. And proper now, they’re warming up properly.

Whereas the US tech sector has finished a lot of the working over the previous decade, conventional FTSE 100 earnings shares are discovering a brand new viewers. Rising rates of interest reminded traders that dividends matter. And with markets extra jittery than ever, I’ve rediscovered the fun of strong shareholder payouts.

Listed below are three massive takeaways from my very own investing expertise.

1. Double-digit yields aren’t at all times harmful

I’ve loaded up on UK financials corresponding to Phoenix Group Holdings, Authorized & Normal Group and M&G. Every has supplied yields across the 9% to 10% mark, which might normally be a purple flag. At that stage, shareholder payouts can shortly turn out to be unsustainable.

To this point, it hasn’t occurred. All three have sound stability sheets and produce dependable cashflow. They might not increase dividends by a lot, maybe simply 2% a yr, however from such a excessive start line, the earnings nonetheless seems to be sturdy. When payouts hit my account, they actually present up.

In fact, nothing is assured. These shares are as weak as every other within the occasion of unhealthy information. I gained’t be taking something without any consideration.

2. Massive yields don’t imply gradual progress

Earnings shares can transfer sooner than individuals suppose. Shares in Lloyds Banking Group have soared 36% in a single yr and 67% in two, and are nonetheless forecast to yield 5.43% in 2026.

The Phoenix share price is up 36% within the final yr, whereas M&G has climbed round 25%.

It’s simple to imagine earnings shares are boring. That they only trundle alongside. Recently, that hasn’t been the case.

3. Progress shares can shell out too

Video games Workshop Group (LSE: GAW), which I don’t personal, isn’t most individuals’s thought of an earnings inventory. It’s a progress monster. However that doesn’t imply traders need to miss out on dividends.

Its share price is up 57% in 12 months and has doubled in 5 years. On 5 March, the Warhammer maker lifted full-year revenue steering after sturdy buying and selling throughout its core enterprise and licensing arm.

It’s been a outstanding run. Video games Workshop joined the FTSE 100 final yr, because of a loyal fan base and profitable gaming royalties. It expects pre-tax income to hit at the very least £255m for the yr to 1 June, nicely forward of analyst forecasts of £225m.

The dividend could not look big at first look, with a trailing yield of two.5%. However payouts have grown at a mean annual charge of 25% during the last decade.

As ever, there are dangers. Whereas the corporate has finished a robust job increasing its buyer base, any lack of curiosity from its core followers may dent gross sales and loyalty. Licensing earnings may be lumpy and episodic, and rely on the success of tie-ups with Amazon and video games makers. In some unspecified time in the future, its stellar progress should certainly gradual, however I feel it’s nonetheless price contemplating immediately.

I’m not saying each earnings inventory will hit the mark. Some will lag. Dividends may be reduce. However over time, with cautious choice, traders can take pleasure in loads of earnings. And a few progress.