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What a yr it’s shaping as much as be within the inventory market!
Final week started with individuals questioning whether or not the FTSE 100 index of main British firms may break its personal all-time excessive document set earlier this yr, and maybe march onwards to 11,000.
By the tip of a busy week within the markets nevertheless, the temper was very completely different. Buyers have been – and are – attempting to determine what a shifting international geopolitical panorama could imply for his or her portfolios.
Stepping away from the emotion, now looks as if a very good time to place issues in perspective with some knowledge from the UK inventory market’s flagship index.
2026 has been constructive for the FTSE 100
Having reached new ranges – and since fallen again considerably – the FTSE 100 index continues to be solidly in constructive territory for 2026 thus far.
Because the begin of the yr, the index is up by 6%. Which may not sound very thrilling, however it’s nonetheless upwards motion.
It implies that £15,000 invested at the beginning of the yr would now be value round £15,900.
That isn’t spectacular, however it’s nonetheless stable for my part.
It’s simple to distinction the index’s efficiency with a selected share that has performed properly after which see the Footsie’s displaying as comparatively weak.
In actuality although, a diversified index of 100 shares is all the time going to carry out worse than a few of its constituent members, however higher than others.
Don’t neglect the dividends
On high of these capital features, there are dividends to contemplate too. This yr, FTSE 100 firms are anticipated to pay out over £80bn in extraordinary dividends to shareholders.
That’s an eye-watering quantity – and it doesn’t even embrace particular dividends.
Plus, these dividends are usually not solely paid to massive institutional traders with pricey stakes. They’re additionally paid out to legions of small personal traders who put modest quantities into the correct shares.
For the time being, the FTSE 100’s dividend yield is 3%. On a £15,000 funding, that equates to round £450 of passive earnings yearly.
I’m in search of particular person bargains
In equity although, I’ve not been shopping for the index (for instance by way of investing in an index tracker).
I’ve been in search of particular person FTSE 100 shares I should purchase once I suppose their costs are engaging sufficient.
One I feel deserves consideration in the intervening time is insurer Aviva (LSE: AV).
Its efficiency to date this yr is broadly in keeping with the broader FTSE 100, shifting up 7%. Over the previous 5 years it has elevated by 83%.
Aviva has a 5.5% dividend yield, properly above the FTSE 100 common I discussed above. Though it minimize its payout six years in the past, it has been rising it handily annually over latest years.
The insurer is extra centered on its residence UK enterprise than a number of years in the past, having bought some abroad companies and purchased native rival Direct Line. That poses a danger if aggressive pricing strain hurts revenue margins within the UK insurance coverage business.
However because the nation’s main basic insurer, I see its massive buyer base, lengthy underwriting expertise and confirmed money technology skill as vital strengths.
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Christopher Ruane doesn’t maintain any positions within the firms talked about.
