Picture supply: Domino’s Pizza Group plc
It is no exaggeration to say that the UK market is a dividend investor’s dream. There are actually tons of of earnings shares on the market, many providing yields above 5%.
There are two shares right here. One in every of them is FTSE100 And the opposite factor is FTSE250 — I believe it has the potential to supply common earnings and inventory worth progress. Primarily based on future forecasts, each have yields of over 6%.
pizza
domino pizza group (LSE:DOM) had a horrible yr in 2025, dropping 45%. This implies the FTSE 250 Pizza share worth is 62% decrease than it was at the start of 2022.
This displays slower progress and continued margin strain within the Domino’s Pizza model’s UK grasp franchise. Because of this, the dividend has been a bit uneven, falling from 14.7p per share in 2020 to 10p in 2022, earlier than rising to 11p final yr.
Given the weak client setting, this isn’t a risk-free inventory. In November, administration warned:The tough enterprise setting is more likely to proceed to have an effect on the variety of orders till 2026”.
Nevertheless, whereas difficult, the state of affairs seems to be stabilizing, with complete system gross sales rising 2.1% and like-for-like methods gross sales rising 1% within the third quarter. For the complete yr, administration has maintained its underlying EBITDA steering at £130m to £140m. Dividends ought to proceed.
In the meantime, the corporate says its Chick ‘n Dip providing has began efficiently within the north-west of England and Northern Eire. It might roll out to all shops in 2026, and the corporate continues to judge alternatives to amass a second model to speed up progress.
The inventory worth appears to be like low-cost with a ahead P/E ratio of 9.4 occasions, however the anticipated dividend yield is 6.3%. I really feel that this will likely require a more in-depth take a look at the opportunity of a turnaround.
insurance coverage
Subsequent Aviva (LSE:AV.), the other of Domino’s Pizza Group. Because the begin of the yr, FTSE 100 insurance coverage shares have risen 44%.
In 5 years, Aviva has greater than doubled in progress.
Nevertheless, regardless of this enormous revenue, Aviva nonetheless boasts a lovely ahead dividend yield of 6.1%. And provided that administration is bullish in regards to the course of the enterprise, traders could also be anticipating some robust earnings progress.
Aviva’s prospects have by no means been higher. Our diversified enterprise, 25 million robust buyer base and important return on capital imply we will ship an increasing number of to our shareholders and prospects.. CEO Amanda Blanc
Aviva at the moment expects its enterprise to have an fairness mild ratio of over 75% by the tip of 2028. This implies much less capital is offered to ship progress, which bodes properly for dividends and share buybacks.
Nevertheless, the UK recession will pose a problem for Aviva, notably whether it is extreme sufficient for households and companies to tighten rapidly.
However because it stands, the inventory trades at 11.5 occasions subsequent yr’s P/E, which makes it appear like a good worth. Couple this with its 6.1% yield, share buybacks that can resume subsequent yr, and the latest Direct Line acquisition, and I believe Aviva continues to be price contemplating.