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The Footsie is up nearly 10% over the past 12 months, but there are still plenty of high-yielding shares on offer.
The following table shows the five largest dividend forecasts, at the time of writing, and the change from the previous year’s dividend and 12-month share price changes.
| Company | Return yield | Dividend change | 12m price change |
| Phoenix Group Holdings share price (LSE: PHNX) |
10.4% | +2.8% | +6.8% |
| IM&G | 9.9% | +1.9% | -2.5% |
| Legal & General | 9.3% | +4.8% | -4.0% |
| British American cigars | 7.9% | +1.0% | +17% |
| Taylor Wimpey (LSE: TW.) |
7.3% | -0.7% | +2.8% |
Imagine, we can have a portfolio of five FTSE 100 stocks have a predicted total yield of 9%. It won’t offer the best diversification, with three stocks in financial services and two in insurance.
Today, I will look at two of them in very different businesses, namely Phoenix Group and Taylor Wimpey. Here’s how their share prices stack up:
Forget the short term
Hmm, that five-year run isn’t that far off. But they plow very different furrows in other temporary periods. Look at the breakdown of the stock market crash of 2020, for example, when housebuilders like Taylor Wimpey collapsed.
My lesson? Never invest in stocks unless I plan to hold them for at least five years, maybe ten years or more. I’m definitely not going to try to time my entry points as there’s no way I’d be able to pick lower on that chart.
And, maybe, just go for diversified allocations and not worry too much about which sectors might do the best?
Property first
Seeing Taylor Wimpey fall hard in response to the pandemic was not really a surprise. Not being able to move freely makes it very difficult for us to buy houses. And then the inevitable inflation came later, bringing with it higher interest rates.
Inflation could worsen as we enter an era of escalating global trade wars. So there is clearly a risk of further pressure on Taylor Wimpey’s share price. And even in 2026, forecasters still expect the dividend to be more than half of its 2019 level, albeit rising.
But the housing market has a more reliable view of long-term demand than most, right?
Insurance favorite
The insurance industry can be very volatile. And I expect my insurance company to have more ups and downs than most. Analysts expect Phoenix to lose money again this year after several years of losses. But they’re seeing that return, with good earnings growth on the cards through 2026.
In its FY September profit, the company said “on the way to deliver our financial goals that support our ongoing and sustainable profitability“.
The company is changing its business, however, as its old strategy of buying closed-end life insurance policies is ending. So the uncertainty there in a sector that is already very uncertain.
My 2025 purchase?
I already have insurance and home builders shares. But these two are on my list for next year when I want to combine my favorite fields.
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