FTSE 100 yields 'to rise 11% this year'

The yield of the FTSE 100 will rise from 3.07% to 3.37% this year as FTSE 100 companies increase their dividends by an average of 11%, Banc De Binary has claimed.

The binary options trading firm said the expected rise would make blue-chip equities increasingly attractive to investors, especially with 10-year UK gilt yields remaining around the 2% mark. In particular, the firm highlighted a group of seven shares that are expected to offer yields in excess of 4%, with dividends more than twice covered by earnings. The list includes Shell (with a forecast 5.1% yield in 2013), HSBC (4.4%), Wm Morrison (4.6%) and Tesco (4.2%). However, the study also warned that some high yielders could make dividend cuts in future. Pointing to the insurance sect...