I have a lot FTSE100 stocks with juicy yields. British-American tobacco, Legal and generalAND M&G (LSE: MNG), for example, currently offer a dividend yield higher than 8%.

However, this is more than twice as much as the current average for shares in the flagship index of British companies.

So should I stick to the average or find stocks that offer exceptional returns?

Dividends – and the rest

Of course, the prospect of earning at least £8 a year for every £100 I invest today is attractive.

Not only does each of these three stocks yield above 8%, but none of them has cut their dividend in recent years.

However, when it comes to price changes, the situation is not so rosy.

Over the last five years, the FTSE 100 index has increased by 11%. During this period, the share price of the British-American company increased by less than 1%. Legal & General and M&G were down 21% and 12%. Oh (though thank you for the dividends along the way)!

Limited development opportunities?

In some ways, this may not be surprising. Mature companies often pay generous dividends when there are no development opportunities to spend free cash on.

But while I think this is a fair description of the British, both Legal & General and M&G operate in an industry with huge demand, which I believe is likely to grow over time.

So what should I do?

The power of connection

Perhaps the answer is: “Thread“.

My hope is that by simply holding on to my stocks and reinvesting the dividends, I could potentially achieve very good financial results.

With the FTSE 100 average yield currently at 3.6%, if I invested £10,000 at this level for 20 years, I would end up with a portfolio valued at more than twice that amount.

Not bad. But what if I increased my 10,000? pounds by 10%, i.e. the current rate of return on mergers and acquisitions? After the same period, my shares should be worth over £67,000.

Making wise choices

In practice, it is not known what the situation will look like in the future.

Yes, M&G benefits from operating in a market with mighty and resilient demand. Yes, a mighty brand helps it meet this demand. Yes, its asset management expertise helps the company stand out from the newcomers.

But what if destitute performance by asset managers causes clients to withdraw funds? We have often witnessed such outflows from mergers and acquisitions, which pose a risk to profitability in the long run.

Still, I’m joyful to own M&G shares as part of a diversified portfolio. In doing so, I aim to not only beat but destroy the average yield of the FTSE 100 Index.

Does it matter? If this means I can reach my financial goals faster, then I think the answer is:Yes“!