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The FTSE 100‘s a great place for investors to find top-quality income shares. Here are four high-dividend stocks I think are worth a close look today.
Taylor Wimpey
The housing market isn’t out of the woods just yet. But a steady stream of upbeat industry news suggests homebuyer demand is back in recovery mode.
Purchasing Taylor Wimpey (LSE:TW.) shares to capitalise on this could be a sound idea. Today, its forward dividend yield sits at a gigantic 7.1%.
Latest data from the Royal Institute of Chartered Surveyors (RICS) underlines the sector’s positive momentum. It shows new buyer enquiries rose to two-year highs in March, and led the body to predict home prices could rise again in the next 12 months.
The recovery could run out of steam if interest rates don’t fall in the coming months. But on balance buying Taylor Wimpey shares could still be a good play.
Phoenix Group Holdings
High interest rates would also be problematic for Phoenix Group (LSE:PHNX) by chipping away at its asset values. The firm could be weighed down too, by persistent weakness in the global economy.
Yet I believe these threats are baked into the FTSE firm’s low valuation. It trades on a forward price-to-earnings (P/E) ratio of 10.2 times, which is below those of most of its financial services peers.
Investors can also grab a juicy 10.7% dividend yield at current prices.
Phoenix is a company packed with long-term potential. As the UK population ages, demand for retirement and investment services should follow suit, driving profits at companies like this sharply higher.
Aviva
Life insurance giant Aviva (LSE:AV.) is another Footsie business that stands to gain from this demographic change. It is also a major provider of pensions, annuities, equity release and a range of other retirement products.
Competition is fierce in this part of the market. But this 328-year-old business has significant brand power that helps to reduce this threat.
I also like the company because of its deep balance sheet. Its Solvency II ratio stands at 212%, giving it room to continue returning cash to its shareholders while acquiring capital-light businesses.
Today, Aviva shares carry a mighty 7.5% dividend yield.
HSBC Holdings
Asian banking powerhouse HSBC (LSE:HSBA) also offers terrific all-round value. It trades on a forward P/E ratio of 6.8 times and carries a corresponding 9.5% dividend yield.
Unfortunately, the company is at risk of near-term turbulence as China’s economy splutters. Including Hong Kong, the country makes up around 45% of group profits. And problems in China have a contagion effect on the rest of the region.
But the long-term outlook for HSBC is robust. Demand for banking products in Asia is tipped to grow strongly over the next two decades, driven by population growth and improving personal incomes.
And the bank’s restructuring rapidly to capitalise on this opportunity. Just this week it announced the disposal of its Argentinian operations, following on from the sale of other major non-Asian operations. I think the future’s very bright here.
