Dividend inventory Phoenix Group Holdings (LSE: PHNX) is lastly getting a number of the consideration it deserves.

Whereas many UK shares have been hammered by Donald Trump’s tariff threats, FTSE 100 dividend shares have escaped the worst of the volatility. Some have even made beneficial properties. Phoenix is one among them.

Its shares are up 8% in per week and 22% over 12 months. Not dangerous for a corporation typically dismissed as a boring back-office insurer. With a price-to-earnings ratio of simply 12.75, the shares nonetheless look fairly priced.

Can the share price climb greater?

Phoenix runs a strong, regular enterprise. It acquires closed life insurance coverage books, the sort different corporations now not wish to handle, and runs them down effectively, benefitting from economies of scale.

It’s not flashy, however it works. To broaden its earnings base, it has expanded into pensions and retirement merchandise. Working in a mature sector, it’s unlikely to set the market alight, however that’s not the attraction right here.

This inventory is all about earnings. The trailing dividend yield stands at a chunky 9.33%. At that fee, the dividend alone might double an funding in below eight years. Any capital development comes on prime.

After all, a yield this excessive raises eyebrows. In immediately’s local weather, many will rightly marvel if it’s sustainable. However Phoenix has an honest monitor file. It’s elevated its payout in eight of the final 10 years, and newest outcomes counsel it’s in fine condition.

In 2024, Phoenix generated £1.4bn in working money. That’s up 22% yr on yr and two years forward of schedule. It’s now concentrating on £5.1bn over the three years from 2024 to 2026, up from the earlier £4.4bn.

The corporate additionally repaid £250m of debt final yr, plus extra in February. The board’s purpose now’s to chop leverage to round 30% by the tip of 2026.

Revenue immediately, potential development tomorrow

The ultimate dividend for 2024 was lifted 2.6% to 27.35p, taking the full-year payout to 54p. The subsequent instalment arrives on 21 Might. I’ll be protecting an eye fixed out for it, since I maintain the shares.

Naturally, there are dangers. Phoenix manages round £280bn in property, and risky markets might dent that, even with hedging. It additionally depends closely on disciplined capital administration. If buyers ever sense the dividend is below risk the share price might undergo. If it’s frozen or minimize, that can harm. Given the corporate’s constant supply, that danger appears price taking.

Phoenix gained’t woo the expansion crowd. US tech giants have stolen the limelight for years, and with money and bonds providing 5% yields currently, many earnings buyers have performed it protected.

However sentiment might shift. Overpriced tech is already feeling the Trump impact. And when rates of interest fall, Phoenix’s dividend might look even higher.

It’s a tortoise, not a hare. However in these jittery markets, that could be precisely what’s wanted for me to win the race.