Some UK shares offer unusually juicy dividend yields – and you do not necessarily have to look as hard as you might think to find them!
Currently, the FTSE 100 index of leading British shares has a dividend yield of 3%.
But what not everyone realises is that some of the leading UK index’s members offer much higher yields.
Here are three shares that yield at least double the FTSE 100 average. I see all three as worth considering.
Legal & General
To start, is the FTSE 100’s highest-yielding share: Legal & General (LSE: LGEN).
At 7.2%, the yield is certainly attractive. Not only that, but the company aims to keep growing its payout per share each year.
It has pretty good form in that regard. Apart from one year during the pandemic when it held it flat, Legal & General has raised its dividend per share every year since a swingeing cut during the 2008 financial crisis.
When it comes to dividends at any company, though, past performance is no guarantee of what to expect in future.
Legal & General has reduced the rate of annual dividend growth in recent years (though it is still growing). The sale of a large US business this year could lead to smaller revenues and profits.
Still, the business remains highly cash generative.
It has a well-defined target market that looks resilient thanks to a focus on retirement-linked finance. It also benefits from a large customer base and a strong, long-established, and widely recognized brand.
Aberdeen Group
Another FTSE 100 financial services company with an above-average dividend yield is Aberdeen Group (LSE: ABDN). It currently offers investors a 6.0% yield.
The firm has had a mixed few years. Indeed, the share price today is 18% below where it stood five years ago.
But it is up 88% since April last year, with the City warming to the company’s financial performance.
Interim results released last week help show why.
While net operating revenue showed only a modest gain of 2% compared to the same period last year, net capital generation was up by 47%.
That is good news from a dividend perspective, as the more capital a company generates the more room it has to maintain or increase its dividend if it chooses to.
The company’s interactive investor platform has been a particular strength of late. I think that could help continue to propel it forward.
One risk I see is choppy stock markets leading some retail investors to pull out more money to Aberdeen’s funds than they put in, potentially hurting earnings.
While the sun shines, though – the FTSE 100 recently hit a new all-time high – the company is making hay.
Standard Life
Another FTSE 100 share yielding 6% is Standard Life.
The company also has a strong record of annual dividend growth in recent years. It aims to keep that going.
Its business model is complicated, but like Legal & General, a focus on retirement and pensions means it has a large addressable market that is likely to stay that way. Standard Life has economies of scale thanks to a customer base numbering 12m.
One risk is property market weakness leading the company to write down some valuations in its mortgage book. From a long-term perspective, though, I see this UK share as worth considering.
What income stock do we like better than Legal & General Group Plc right now?
One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.
And the best bit is that you can see if for yourself, right now, absolutely free of charge!
No jargon. No hard sell. Just a clear look at an income share we think is worth your time.
Christopher Ruane does not hold any positions in the companies mentioned.


