Insurance giant Aviva (LSE: AV) is one of the FTSE 100’s most prized dividend stocks – offering around a 6% yield at the moment. While this is one of the highest dividends available on the London Stock Exchange – and the 10th-highest on the Footsie itself – budding investors may be wondering if that figure can be increased at all. In other words, how can investors get more bang for their buck?

One crucial ingredient that can supercharge returns is to let the dividends build up over time. This harnesses the power of compound interest, especially when paired with reinvesting dividends received. In only a few years, that 6% figure could be left in the dust. With a timeframe of five years to play with, what kind of yield might investors be able to work to with Aviva? Let’s answer that by taking a look at where the yield might be by 2031.

Take a look

One way we can get an estimate for what the dividend yield might end up is by looking at the growth rate of the dividend. In the last five years, Aviva has grown its dividend at 13.35% on average. This would mean a dividend yield (with reinvested dividends, remember) of 12.12% in 2031.

That’s a pretty decent yield, but the growth rate has been excellent of late, so it’s likely at the top end. How about if we zoom out a little?

In the last 10 years, Aviva has grown its dividend at 6.57% on average. The equivalent yield for 2031 is now 9.24%. The steady growth of dividend payments over a few years really makes the yield we’re receiving (on the original stake) look impressive.

These are not guaranteed figures, of course. But it is interesting to see how a few years of building up the dividend can make a difference at its current growth trajectory. And it does make Aviva look quite attractive if CEO Amanda Blanc can keep all cylinders firing.

Unforseeable

It’s also worth remembering that external factors can take a wrecking ball to a dividend, however smoothly a company is running. The pandemic is the most recent example of that. Companies around the world readjusted their expectations in the light of an unforeseeable ‘black swan’ event. Aviva shareholders had one dividend payment cancelled and the amounts rebased after that too.

Only time will tell whether the dividend continues the above-average growth we have been seeing. But I think it’s a testament to overall company performance that the Aviva share price is up 88% since 2023. It’s one of the best FTSE 100 stocks to own over the period. With this in mind, I think there’s a fair chance that we’ll see the dividends continue growing up to 2031 too. I believe the stock could be worth considering.

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John Fieldsend owns shares in Aviva.