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He FTSE 100It's a great place for investors to find high-quality income stocks. Here are four high dividend stocks that I think are worth taking a closer look today.
Taylor Wimpey
The real estate market is not out of the woods yet. But a steady stream of upbeat industry news suggests homebuyer demand is back in recovery mode.
Purchasing Taylor Wimpey (LSE:TW.) shares to capitalize on this could be a good idea. Today, its forward dividend yield stands at a mammoth 7.1%.
The latest data from the Royal Institute of Chartered Surveyors (RICS) underlines the positive momentum in the sector. It shows inquiries from new buyers rose to two-year highs in March and led the body to predict house prices could rise again in the next 12 months.
The recovery could lose steam if interest rates do not fall in the coming months. But all in all, buying Taylor Wimpey shares could still be a good move.
Phoenix group holdings
High interest rates would also be problematic for Phoenix Group (LSE:PHNX) reducing the value of its assets. The company could also be affected by continued weakness in the global economy.
However, I believe these threats are built into the company's low FTSE valuation. It trades on a forward price-to-earnings (P/E) ratio of 10.2 times, which is below that of most of its financial services peers.
Investors can also get a juicy dividend yield of 10.7% at current prices.
Phoenix is a company full of long-term potential. As the UK population ages, demand for retirement and investment services should follow suit, significantly increasing the profits of companies like this.
Aviva
Life insurance giant Aviva (LSE:AV.) is another Footsie company that will benefit from this demographic shift. It is also a major provider of pensions, annuities, equity release and a range of other retirement products.
Competition is fierce in this part of the market. But this 328-year-old company has significant brand power that helps reduce this threat.
I also like the company for its large balance sheet. Its Solvency II ratio stands at 212%, which gives it room to continue returning cash to its shareholders while acquiring businesses with little capital.
Today, Aviva shares have a powerful dividend yield of 7.5%.
HSBC Holdings
Asian banking power HSBC (LSE:HSBA) also offers excellent value all around. It trades on a forward P/E ratio of 6.8 times and has a corresponding dividend yield of 9.5%.
Unfortunately, the company risks short-term turbulence as the Chinese economy falters. Including Hong Kong, the country accounts for around 45% of the group's profits. And the problems in China have a contagion effect to the rest of the region.
But the long-term prospects for HSBC are strong. Demand for banking products in Asia is expected to grow strongly over the next two decades, driven by population growth and improving personal incomes.
And the bank is rapidly restructuring to take advantage of this opportunity. This same week it announced the sale of its Argentine operations, after the sale of other important non-Asian operations. I think the future is very bright here.
