Why I’d invest all I could in this high yielding share

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Andy Ross FTSE 100 companies are paying record dividends. The average yield across all 100 companies is now over 4%, which is good for investors looking for income now, but there is a catch. Falling dividend cover – the amount of earnings needed to sustainably pay out dividends to investors – has tended to fall.However, I think there’s one share that combines great, sustainable income, with the potential for growth – a combination that I think will help any investor make money. That company is insurer Admiral (LSE: ADM).5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Rewarding investorsThe dividend is far above the FTSE 100 average at around 5.5% when you include special dividends. It’s one of the big attractions of buying into the share price. That’s even more the case if for some reason the shares drop in the near term, which will push the yield up further.Admiral has a good track record of paying a dividend. The exact yield fluctuates with the share price, but is typically near to 6% – as it is now. Obviously the share price affects exactly what yield you get, but you can be confident that it’ll be higher than average.The other good news regarding the dividend is that it has historically tended to be well covered by earnings – often by 1.5x or more. What this means is there’s no immediate prospect of the dividend being cut. All being well with the business, the dividend should keep on growing. Between 2014 and 2018, the payout went from 98.4p to 126p, which is quite a jump.A lot to likeThings are going well at the insurer and there’s certainly more to the investment case than just the juicy dividend.This month, Admiral pleased investors with an upbeat trading update. It revealed annual profit would be higher than it had previously expected. This is a result of lower motor injury claims. The FTSE 100 company said it expected pre-tax profit for the year to the end of December to be between £510m and £540m, an increase of between 6% and 13% from the year before.The improved outlook marks a big improvement for the group. The results released in August last year were far gloomier. Back then changes to the Ogden rate were costing the insurer much more money – in the first half, it cost it £33m. The improved tone is very welcome and a good sign for investors.With the group also expanding into comparison websites, loans and international car insurance, there’s plenty of room for growth at Admiral in the future, I feel. I think the combination of income and growth potential and the way Admiral has been a well-run business for a long time all combine to make it a potentially very profitable investment and it’s one high-yielding share I think has a very bright future. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Andy Ross | Tuesday, 18th February, 2020 | More on: ADM Image source: Getty Images. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997”center_img Why I’d invest all I could in this high yielding share Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Andy Ross owns no share mentioned. The Motley Fool UK has recommended Admiral Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img

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