Dividend outlook and share buybacks make the FTSE 100 attractive Investing in the FTSE 100 offers compelling dividend yields. Analysts forecast £83.9
Dividend outlook and share buybacks make the FTSE 100 attractive
Investing in the FTSE 100 offers compelling dividend yields.
Analysts forecast £83.9 billion in dividend payments for 2025, with expectations of further growth into 2026.
The projected dividend yield is set at 3.8% for 2024 and 4% for 2025, based solely on ordinary payments. These rates are among the highest across global stock indices. Additional returns to shareholders through share buybacks, amounting to approximately £56.5 billion in 2024, underscore corporate confidence in the UK stock market.
While specific figures for 2025 are yet to be determined, analysts anticipate that this trend will persist, with share buybacks continuing as a key component of shareholder returns. This outlook is supported by the robust cash generation of these companies and their continuous efforts to enhance shareholder value.
The actual volume of share buybacks in 2025 will hinge on various factors, including broader economic conditions, UK interest rates, monetary policy decisions and their effects on sterling, individual company performance, and strategic capital allocation decisions. Investors are advised to keep an eye on company announcements and financial reports for detailed updates as they emerge.
FTSE 100 technical analysis
With the FTSE 100 having surpassed its May peak, it has hit a new all-time high close to the 8500 mark, raising the question among investors about how high the index could go in 2025. The next upside target is set at 8642. This is calculated by taking the 729-point gain from the April to May 2024 advance and projecting it from the August 2024 low of 7913.
Another possible upside target is 8723, determined by adding the 729-point rise from April to May 2024 to the December low of 7994. Above this, the 9000 level looms as a significant psychological target. The zone from 8418 to 8364, the major key resistance area from June to December, now acts as a support zone due to inverse polarity. It is considered a medium-term technical buying zone for investors who missed this week’s rise in the UK blue-chip index.
The FTSE 100 maintains bullish trends in the short, medium, and long term, underpinned by the June peak of 8364 on a daily chart closing basis. Only an unexpected bearish reversal falling through the 14 January low at 8180 would lead technical analysts to reconsider the current bullish scenario.
FTSE 100 daily chart
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