Relating to nice dividend shares, there are two key components that I take into account. The plain one is the earnings technology, normally noticed by the dividend yield. The second issue is the share price efficiency over a time frame. Listed here are two shares I’ve famous which are each above common when in comparison with the primary index.

Insuring profitability

Firstly, let’s set up the benchmark. The typical dividend yield for the FTSE 100 is 3.55%. The index is up 8.61% over the previous 12 months. So, ideally, I want to pick shares which are forward of each of those metrics. If not, then I’m higher off investing in a tracker fund that distributes the earnings.

One inventory that’s nicely forward of that is Aviva (LSE:AV). The insurance coverage and wealth administration supplier has a present yield of seven.13%, with the inventory additionally up by 17% over the previous 12 months.

Within the H1 2024 report, it recorded double-digit proportion development in working revenue, money remittances, and capital technology versus H1 2023. The CEO commented that “sales are up. Operating profit is up. The dividend is up. Our plan to deliver more for customers and shareholders is working really
well”.

Given the character of insurance coverage and the written premiums, the enterprise does have strong money technology. This makes it interesting for dividend hunters. I can’t see this altering anytime quickly, which suggests it’s one of many prime shares on my radar to think about including to my portfolio.

One concern is that it might come undone through pure disasters. It presents residence and journey insurance coverage and so any type of black swan occasion may set off losses for Aviva.

Transferring with momentum

An alternative choice I’m fascinated with is BT Group (LSE:BT.A). Though it has a decrease yield than Aviva at 5.53%, the inventory has risen by nearly 22% over the past 12 months.

The share price surged again in Might after the full-year outcomes highlighted that the enterprise was previous the height of capital expense spending with reference to the fibre broadband rollout. In my eyes, which means that the dividend funds will probably be extra sustainable going ahead, as funding elsewhere isn’t soaking up all of the free money.

Additional, BT managed to hit the £3bn value and repair transformation programme a 12 months forward of schedule. Once more, this implies the agency will probably be extra nimble and environment friendly going ahead, decreasing potential money wastage.

Some individuals may be apprehensive concerning the growing stake that billionaire Carlos Slim has within the firm. His family-owned enterprise now owns 4.3% of BT Group, however his precise motives haven’t been revealed. It may not be something to be involved about, however some readability could be useful.

General, I like each shares and can possible add them later this month to my funding pot.