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Don't be distracted by M&G's dividend

Normally, a 10 per cent dividend yield is a red flag. Is that true of this asset manager?
September 13, 2023

When M&G (MNG) releases its half-year numbers in a fortnight’s time, the first word most shareholders’ eyes will scan for is ‘dividend’.

That’s one inference from the subject of many articles that perform well on our website. A lot of Investors’ Chronicle readers, it would appear, quite like fat dividend cheques. And as the only FTSE 100 constituent with both a double-digit trailing and forward dividend yield, the financial services group is a favourite of those who invest for income, and the optionality that regular distributions provide.

If recently installed chief executive Andrea Rossi keeps the interim payout at 6.2p per share (or better still, matches the consensus market expectations of 6.4p), that will instil confidence in a repeat of 2022’s full-year dividend of 13.4p. The City, forecasting 13.7p, is optimistic.

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