The UK stock market is renowned for its stunning dividend shares, which offer some of the most generous yields in the world. While the US S&P 500 typically has an average yield of around 1.1%, the FTSE 100’s average is three times higher at 3.3%.

The downside is that UK stocks tend to deliver less dramatic growth than the high-powered US market. But dividends are still the FTSE 100’s secret weapon. Is now a good time to deploy it?

A dozen FTSE 100 stocks currently pay income of 5% or more right now. Of these, seven pay 6% or more. The most generous of all, insurer and asset manager Legal & General Group, yields a stunning 8%.

I hold the stock but I’ve done better overall with M&G (LSE: MNG), which offers investment banking and brokerage services. I bought it in 2023, and I’m already sitting on a quickfire total return of more than 80%.

Can M&G shares keep up that income?

The M&G share price is up a stunning 52% over the past 12 months, and that’s despite recent Iran-focused volatility. The rest of my return has come from reinvesting my dividends. When I bought M&G, its trailing yield was a stunning 10%. That’s slipped to 6.9%, but it’s still a pretty meaty rate of income.

M&G only floated in 2019, when it was carved out of FTSE 100 insurer Prudential, but it has a good track record of increasing shareholder payouts. They’ve been lifted every year, at an average rate of 2.37% over the last five years. That’s helped maintain the real value of its income, after inflation.

Dividend growth is expected to slow to just 2% in the next few years. Given the supersized yield, that’s hardly surprising. For me, the most important thing is that it remains sustainable. Dividends are never guaranteed, but this one looks relatively solid. M&G’s Solvency II ratio, which shows how financially solid the business is, climbed from 223% to 242% in 2025. It made a solid full-year profit of £838m. However, growth was negligible, as it made £837m the year before.

Are there better yields out there?

The board is looking to pick up the pace, targeting annual operating profit growth of 5% a year over the next three years. Middle East events could undermine that. If we get a wider stock market crash, that will hit net inflows into its funds, as well as the value of existing assets under management.

As an active fund manager, M&G faces constant pressure from low-cost passive rivals, such as ETFs. Every stock has risks like these. I still plan to hold M&G to retirement and beyond, and think the shares are worth considering today.

I wouldn’t say now is the absolutely perfect time to buy dividends. That was probably a couple of years ago, when the FTSE 100 was lower, and yields even higher. But there are some brilliant income opportunities out there, and I’m not just talking M&G. It’s still a great time to go shopping for income.