The FTSE 100 is going through a rough patch at the moment. As I write this on Thursday morning (19 March), the index is down about 1.9% for the day and 7% for March.
The good news for those with a bit of cash on the sidelines is that some great investment opportunities are starting to emerge. With that in mind, check out this high-yield dividend stock that’s ‘on sale’ right now.
A leading investment company
The stock I want to highlight today is M&G (LSE: MNG). It’s a leading savings and investment business that has been around (in some shape or form) since 1848.
Today, it has over 1,000 institutional clients and 4.2m retail customers globally (total assets under management of about £375bn). So, it’s a significant player in the financial world.
Now, in February, this company’s share price was above 320p. Today however, it’s near 280p.
At the current share price, the stock looks attractively valued – the forward-looking price-to-earnings (P/E) ratio is under 10. Meanwhile, the dividend yield is eye-catching.
High dividends on offer
This company is a reliable dividend payer. Since it was split off from Prudential in 2019, it has increased its payout every year.
For 2025, it declared a total payout of 20.5p per share. That translates to a yield of about 7.3% at today’s share price.
Looking ahead, analysts expect payouts of 21.2p per share this year and 21.9p next year. In other words, income growth is expected.
Note that dividend coverage (the ratio of earnings per share to dividends per share) is solid at around 1.4 times. So the payout looks sustainable.
Operational momentum and a long-term growth story
It’s worth pointing out that there’s more to this company than just the low valuation and high yield. It also has a fair bit of operational momentum.
In 2025, for example, it saw net flows from open business of £7.8bn. In the company’s full-year results, Group CEO Andrea Rossi said that he expects the momentum to continue in 2026.
It’s also well-placed in the long term to benefit from a) growing demand for investment and retirement solutions and b) rising equity markets. The more its assets under management grow, the higher its earnings.
“With a clear strategy and the right resources in place, I am confident in M&G’s ability to deliver meaningful profit acceleration and sustainable long-term value for customers, clients and shareholders.”
M&G Group CEO Andrea Rossi
A compelling opportunity
Of course, like every stock, it has its risks. One is a major market meltdown – this could see earnings drop sharply, potentially putting pressure on the dividend.
Another risk is turbulence in the private markets (which is increasing at the moment). Recently, the company has been increasing its exposure here.
Overall though, I like the risk/reward set-up at today’s share price. I think the stock is worth a look.
But it’s not the only FTSE 100 dividend stock that looks attractive right now…
