The Shares and Shares ISA is an excellent dwelling for long-term dividend paying shares. And after current inventory market volatility, there are some incredible-looking yields available. 

One of the vital placing comes fro FTSE 250 monetary inventory aberdeen (LSE: ABDN), which now provides a whopping 10.1% yield.

The corporate has had a tough experience ever because the troubled merger between Normal Life and Aberdeen Asset Administration in 2017. That £11bn deal ended up doing extra hurt than good. Too many funds had been left overlapping and vague, resulting in closures and redemptions.

Nightmare merger

Lloyds then pulled an enormous £25bn mandate, and the ill-fated 2021 rebrand to abrdn invited mockery, which duly got here.

The aberdeen share price collapse wasn’t humorous although. Right this moment, the market cap is a meagre £2.65bn. It’s broadly flat during the last 12 months and issues would possibly lastly be turning round.

Financials throughout the FTSE 100 have struggled. Aviva, Authorized & Basic Group, M&G and Phoenix Group Holdings have all traded on low multiples and excessive yields at occasions. However none have suffered the identical type of meltdown.

The overdue rebrand to aberdeen is only one signal that administration is making an attempt to reset the narrative. I simply want the management staff gone all the best way, and reinstated the capital A.

Beneath CEO Jason Windsor, the enterprise has sharpened its focus and eventually returned to revenue development in 2024, the primary time that’s occurred in three years.

The acquisition of interactive investor has no less than paid off because the funding platform posted adjusted working revenue of £116m in 2024. 

Extremely-high earnings

aberdeen’s advisory enterprise additionally improved, with earnings up 7% to £126m regardless of continued outflows. And its Institutional & Retail Wealth division noticed web inflows after years of decline.

There’s nonetheless work to do. The yield is sky excessive however that’s purely down to the plunging share price. In observe, shareholder payouts have stayed flat for 5 years. The board has paid out 7.3p a 12 months each Could and each September since 2020 with metronomic effectivity. Sadly, which means the actual worth is being eroded by inflation.

Nonetheless, no less than it hasn’t been minimize and given the dimensions of the yield, it’s arduous for traders to complain.

Constructive forecast

Analysts stay cautious. The consensus one-year share price goal stands at 158p. That will mark a modest improve of just below 7% from at the moment’s 147.6p. Mixed with the present 10% yield, that may ship a 17% complete return, if appropriate

In fact, nothing’s assured. Dealer forecasts are simply educated guesses. The dividend, whereas common, isn’t set in stone. World share costs can fall farther from right here, hitting inflows and the worth of present property beneath administration. 

However with a price-to-earnings ratio of 10.1 and web capital technology anticipated to develop 26% by 2026, there’s a case to be made for optimism.

It’s not for these chasing a fast acquire. And anybody already holding different high-yielding UK financials could not want extra of the identical.

However for long-term income-seeking ISA traders with out an excessive amount of overlap, aberdeen lastly seems value contemplating.