The insurer Phoenix Holdings has the third highest dividend yield in the FTSE 100 at 9.5 per cent, behind only Vodafone and British American Tobacco. It is little wonder that it has come to be a favourite among retail investors, now a fixture in brokers’ most popular buys. The company spent £530 million on shareholder payouts last year alone, which represents around a tenth of its market value. This is a huge sum, and investors would be right to approach with caution.
Phoenix manages the pensions, savings and investments of about 12 million people in Britain and Europe. It has four businesses: the first is “pensions and savings”, which manages defined contribution workplace pension schemes. The second is “retirement solutions”, which is its defined benefit
