3 Popular Income Actions in Great Britain I will not affect BargePole now

Featured in:
abcd

Image source: Getty Images

. FTSE 100 It is a wide range of income reserves, some of which now offer quite tasty yields. Unfortunately, not all these shares paying dividends will win investments. After seeing some of the most popular elections among investors in the last month there are three, from which I will personally disappear.

sadasda

Changing insurance landscape

According to BellIN Legal and general (LSE: LGGU) i Aviva (LSE: AV.) Both are one of the most popular inventory inventory that you should buy now. And it’s not too hard to understand why.

These insurance giants currently offer 9.2% and 5.6% dividend profitability. Looking at their latest results, both provided higher operational profits in increasingly diverse portfolios of financial products. And because in turn it generated repetitive cash flows, both companies have some passion of pedestrians of four and five years respectively.

But as every experienced investor knows, earlier results do not guarantee future results. And the changing macroeconomic landscape in Great Britain begins to create winds that can potentially threaten dividends.

My most significant worry is the state of British logs. Both insurance groups have enormous parts of their investment portfolios related to government bonds. Therefore, they are very sensitive to sudden movements from gold -plated profitability, which recently increased to many years of maximas due to growing problems with fiscal policy.

The growing gold-plated crops mean falling bond prices, which can cause huge problems for investment strategies based on responsibility and retirement risk-to-risk transfers, which is used by both legal and general and Aviva to generate earnings. Simply put, if profitability is still unstable, these companies can face a sudden wave of margin, causing a balance and challenges of liquidity.

That is why, despite the high profitability of dividends, the risk surrounding these income reserves is simply too high for my preferences.

It is possible to build a house?

Another popular choice is now Taylor Wimpey (LSE: Your). And it is effortless to understand again why investors are rushing to buy. Despite the problems with access to the price, the demand for an apartment in Great Britain remains extremely mighty due to deficiencies. And with over 76,000 plots on the company’s landbank, the company has a enormous unused growth.

Looking at their latest results, Taylor Wimpey even managed to speed up their efforts in building houses by double numbers. Therefore, the completion of the house is on the right track to reach from 10,400 to 10 800 to the end of 2025.

So what is the problem? Despite operational improvements, the company still slows down the margins of profit. Build cost inflation surrounding raw materials, and the workforce is still a pest. And when throwing unpredictable repair of cladding and regulatory sediments, Taylor Wimpey’s profits have recently fallen red.

With fewer profits to lose dividends, they are no longer covered by earnings. All right if the profits are able to affect in the compact period. But if not, management can be forced to reduce shareholders. And with the raise in mortgage rates due to the fiscal and economic environment mentioned earlier, Taylor Wimpey can fight to find buyers in all newly completed houses.

That is why, despite the tempting dividend profitability in 9.6%, I do not want to buy this popular income.

abcd
sadasda

Find us on

Latest articles

Related articles

See more articles

Most and least REIT companies with a market capitalization...

January 17, 2026 at 12:00 ETReal Select Sector SPDR® Fund ETF (XLRE), VNQ, IYR, REM, RET, RWR,...

State Street Projects Fee Revenue Growth of 4-6% and...

Call Earnings Statistics: State Street Corporation (STT) Q4 2025 Management view Ronald O'Hanley, CEO and President, stated:...

Why I think Greggs shares could be a good...

Image source: Getty Images Greggs (LSE:GRG)...