I mainly invest in UK dividend stocks. In addition to dividend yield, I look for good earnings coverage and evidence of long-term cash flows, among other things.

But what if I just put some money into the ones that make the most money each year and then just forget about them?

It would certainly make it easier for me to scratch my head about my stocks and shares ISA choices.

The highest yields

The table below shows five FTSE100 companies with the highest forecast profitability at the moment. I skipped it Vodafonbecause a large reduction was announced for 2025.

There is one immediate solution to this. Purchasing all five would involve me very much in the overlapping areas of the insurance and asset management businesses, covering four of the five.

British American Tobacco is the only non-financial company in all this.

One thing I have always considered a key part of my strategy is diversification. I certainly was very content about it during the banking crash. I also want decent diversification in case the economic situation in the insurance sector deteriorates in the future.

Cyclic selection

That being said, I really like this sector. And I think Legal & General is the one that attracts me the most among these candidates.

Insurance can be very cyclical. And when things are going well, dividend yields like those in the table can look the best.

However, forecasts indicate that Legal & General’s dividend will boost further from 9.5% and reach 9.7% in 2026. However, this will depend largely on the economic situation over the next few years. And the world doesn’t seem like a very cordial place right now.

So far so good

At least for now, cash flow appears to be OK. In the first half of the year, Legal & General increased its interim dividend by 5%. And proceeds with “a £200 million share buyback in line with our new capital return rules“.

The company plans to continue to boost its dividend in the coming years, although in moderate increases.

The main risk I see is the cyclical nature of the industry combined with very real competition. Like most of the others on my table.

Something else

Much of this thinking applies to the rest of the companies in the table, with the exception of British American Tobacco. Such a huge dividend of 8.8% occurs even with a 16% boost in the share price since the beginning of the year.

I do not share the fear that tobacco profits will disappear, at least not in my investing lifetime. But this is certainly the main risk.

In fact, only ethical considerations keep me from buying tobacco stocks. But other than that, it’s a dividend I’d like to utilize for long-term income.

It’s nice to see that not all five of the top players are in the same industry.