AJ Bell warns investors over 'questionably high' FTSE 100 dividend yields

Consistent dividend growth a key trend

Income investors should be wary as "juicy" FTSE 100 dividend forecasts fail to reflect falling share prices in recent months, AJ Bell has warned.

Despite falling share prices as a result of market wobbles in February and March, FTSE 100 dividend forecasts have remained unchanged. According to the AJ Bell's latest Dividend Dashboard, the UK stock market's top ten companies have an average 2018 forecast dividend yield of 7.9% yet all of them, barring Persimmon, have seen share price weakness over the past year. Overall, the FTSE 100 is forecast to pay out £87.5bn in dividends this year, equating to a 4.4% yield. Russ Mould, investment director at AJ Bell, has warned investors to "proceed with caution", believing levels to look...