The longer I make investments, the extra I admire FTSE 100 shares that supply me a excessive and probably rising second revenue from dividends.

Whereas the S&P 500 has outstripped the FTSE 100 for development these days, it could actually’t compete for passive revenue. Proper now, the FTSE 100 as an entire yields 3.58%. That’s greater than thrice the 1.18% yield on the US index.

It’s not an both/or alternative. I’ve loads of publicity to the S&P 500 by means of exchange-traded funds, so I get that development. I bag my FTSE 100 revenue by buying particular person shares, reasonably than the index as an entire. That means I can intention to max out my revenue.

It is a good FTSE 100 dividend inventory

I personal a diffusion of blue-chip revenue shares however Phoenix Group Holdings (LSE: PHNX) is likely one of the most spectacular. Proper now, it has a surprising trailing yield of 10.2%. As if that wasn’t sufficient, it’s forecast to hit a blockbuster 10.7% in 2025.

That’s one of many attraction of dividends. Firms intention to extend them, 12 months after 12 months, as earnings rise. It helps hold traders loyal.

There’s no assure, in fact. If earnings or money flows dip, Phoenix might resolve it doesn’t come up with the money for to fund that largesse. That’s a final resort, although.

The board has a fairly good monitor document, having elevated payouts in eight out of the final 10 years. At the moment, analysts count on a payout of 53.9p per share this 12 months, rising to 55.5p in 2025. That’s a modest 2.97% enhance, however ought to assist keep its worth in actual phrases.

At this price, I can hope to double my cash in simply over seven years, even when the Phoenix share price doesn’t rise in any respect.

I count on the Phoenix share price to fly in some unspecified time in the future

Which brings me to the primary sticking level with Phoenix. Its shares haven’t given traders a lot development these days. That’s partly down to as we speak’s excessive rates of interest.

Larger charges imply that traders can get an honest price of revenue from money and bonds, with out placing their capital in danger. With charges now anticipated to remain larger for longer, Phoenix shares have idled.

Nonetheless, base charges ought to path down over the following few years and after they do, money and bonds pays much less whereas, with luck, Phoenix will yield much more.

If an investor was to place their whole £20,000 Shares and Shares ISA allowance into Phoenix shares, they might hope for an excellent second revenue of £2,140 subsequent 12 months. There’s an opportunity of getting share some price development on prime too. After all, in actuality, diversification is necessary!

The 14 analysts providing one-year share price forecasts for Phoenix have a median goal of 573p. That’s a rise of 10.87% from as we speak. In the event that they’re proper – and as ever there aren’t any ensures – then they’d be taking a look at a complete return of greater than 20%. And that’s for only one 12 months. We’ll see.

Both means, I count on to get that dividend on my holdings in Phoenix, and can reinvest each penny to purchase extra of this good second revenue inventory.