M&G (LSE: MNG) has been a popular pick among income stock investors for a long time. In the past couple of years, however, the share price has climbed. And that means the dividend yield has fallen back. But forecasts show 6.5% for the current year, still one of the best in the FTSE 100.

Couple that with earnings and dividends predicted to keep rising, and I reckon M&G might just be one of the best long-term income stock candidates ever. Let’s take a closer look…

What they’re saying

M&G is a savings and investment business, serving private investors, pensions, and institutional clients. As such, it’s very much a market follower. And its fortunes go hand in hand with how the stock market is performing.

Think it’s likely to continue that long-term upwards path into the future? For those of us who do, M&G could be just the job to get some effective wide-market exposure.

Here’s what analyst forecasts for the next few years suggest…

Cover by earnings can vary a lot for a company like this — with a loss per share in 2024, for example. But the long-term trend is strongly positive.

Those forecast annual dividend increases aren’t huge. But they should be enough to deal with inflation, over the long term. And that’s key for me for an income stock. Progressive dividends, supported by solid — even if sometimes a bit erratic — earnings, do the trick for me.

Market follower

When the stock market is rising, M&G’s asset values increase. And that’s part of the metrics needed for the company to maximise the fees it can charge. It’s not surprising, then, that M&G shares have done so well over the past couple of years as the FTSE 100 and FTSE 250 have been growing.

The other side of that coin is that investment managers can suffer worse than the overall market when we’re in a down spell. Does that make M&G a potential buy in times of bear markets? In my book, yes, it does. And my Twelfth Magpie colleague Harvey Jones explained why M&G will be high on his shopping list in the next stock market crash.

But there’s another side. I’d say this is also perhaps a perfect candidate to consider drip-feeding investment cash into over the years, through the ups and downs.

Bottom line

Potential M&G shareholders need to be able to handle volatile markets. That’s the biggest threat I see to the share price, at least in the short-to-medium-term. But with that in mind, I reckon this is one to consider as a possible keystone for a Stocks and Shares ISA.

And there are some top candidates out there for fleshing out an ISA into a nicely diversified wealth generator…

Should you invest £5,000 in M&g Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if M&g Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.