I’m taking a look at two FTSE 100 shares with a few of the highest dividend yields, and so they nonetheless look low cost to me.

I’m at all times upbeat in regards to the long-term future for the FTSE 100, because the UK inventory market has wiped the ground with different forms of funding for greater than a century.

However proper now, the large dividends I’m seeing make me bullish in regards to the brief to medium-term too.

Prime dividend inventory?

M&G (LSE: MNG) would possibly simply be my prime decide in the meanwhile.

It’s a retail financial savings and funding supervisor, and people have a tendency to not be too common when the inventory market is in a bear temper. You already know, just like the years that adopted the 2020 inventory market crash.

The M&G price has dropped 7% up to now 5 years. And it’s even down 8% yr so far, regardless of the outlook turning a bit brighter this yr. Not less than, I feel it’s brighter.

Rebuilding

The corporate went by a tricky spell, and it’s been engaged on a little bit of an effectivity drive. A variety of our prime finance corporations have had to try this, with Aviva‘s restructuring probably the best profile one.

At half-year outcomes time in September, CEO Andrea Rossi stated: “Over the last 18 months, we have made meaningful progress transforming M&G by focusing on our strategic priorities“, speaking of “another resilient financial performance” and including that “the sturdy foundations we now have constructed give me confidence within the long-term outlook for M&G“.

Getting there

There’s at all times threat when an organization is having to regroup and refocus. And I wouldn’t simply assume issues are all fantastic now. The boss may be upbeat, however they’re purported to be, as a part of the job.

The analysts appear to be on board, although. They’ve stable rises in earnings per share (EPS) and dividends on the playing cards for the following few years, with cowl by earnings of round 1.3 instances. I feel that’s sufficient on this line of enterprise.

Oh, I practically forgot the forecast dividend yield. It’s up at 9.6%. I’m positively contemplating a purchase right here.

Insurance coverage threat

If I hadn’t already purchased Aviva shares, I’d very possible have Authorized & Basic (LSE: LGEN) on the prime of my listing.

The share price has had a barely worse 5 years than M&G, even thought its funding actions are a bit extra various. Authorized & Basic is into institutional investing, actual property, and different areas.

One other 9%

We’re taking a look at a forecast dividend yield of 9.2% right here. Predicted cowl by earnings is decrease, nonetheless, solely reaching round 1.1 instances by 2026. That provides threat, and it makes me much less assured within the dividend being maintained.

There’s by no means a assure with a dividend, in fact, and an organization can reduce it any time it pleases. However Authorized & Basic appears set for a decade of steady rises, if it will probably hold it up this yr.

It carries cyclical insurance coverage sector threat. And I feel each of those shares might stay depressed whereas rates of interest keep excessive.

However each are alone potential purchase listing.