Watch out for dividends from Aviva, Phoenix Group and M&G

A one-off dividend boost for Aviva (LSE:AV.) shareholders and payments by two popular income stocks are among the highlights when 13 FTSE 100 companies distribute £2.4 billion in October.

Aviva’s interim dividend of 13.1p for payment on 16 October includes an additional 5% uplift following completion of the insurer’s acquisition of Direct Line in early July.

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The award, which Aviva promised when it unveiled the terms of the takeover deal at the end of 2024, means shareholders will get a payment 10% higher than the 11.9p of a year ago.

Aviva’s guidance remains for mid-single-digit growth in the dividend cost, although some in the City think this policy may change at a 13 November presentation on its post-deal prospects.

The addition of Direct Line means Aviva is increasingly viewed as a European composite insurer rather than a UK life stock. As a result, Bank of America expects the insurer to align with peers such as Axa and Allianz by shifting to a policy linked to an earnings per share payout ratio.

The near-£400 million due for payment by Aviva continues the feel-good factor for its shareholders after a year in which shares have risen to their highest level in almost two decades.

The yield on the dividend now stands at 5.2%, compared with 6.8% a year ago.

At 8.5%, Phoenix Group Holdings (LSE:PHNX) shares yield the highest dividend income of the FTSE 100 companies due to make payments in October.

The retirement and savings business, which intends to use its “most trusted brand” Standard Life for its corporate identity from March, has increased the dividend for payment on 30 October by 2.6% to 27.35p a share.

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The group said at its half-year results that it had a sustainable and growing business, with levels of cash, capital and earnings set to underpin a progressive and sustainable dividend.

Panmure Liberum recently forecast £700 million of excess capital, which it said provided management with optionality to increase distributions or reinvest for growth or both.

M&G Ordinary Shares (LSE:MNG) shares yield 8%, which compares with 9.5% a year ago when the savings and investments business declared a half-year dividend of 6.6p. This year’s figure is 6.7p and will be paid on 17 October at a cost to the company of £159 million.

The biggest distribution in the month will be £644 million from GSK (LSE:GSK) on 9 October, part of its commitment to a quarterly dividend of 16p a share and 64p across the year.

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Diageo (LSE:DGE) ranked as last October's biggest payer at £1 billion, but shareholders will not receive this year’s full-year award of 62.98 US cents until 4 December. This reflects the timing of the AGM, which approves the dividend payment on the later than usual date of 6 November.

The delay means that the total amount due to be handed to FTSE 100 shareholders in October has fallen to £2.4 billion from £3.5 billion the year before. Standard Chartered (LSE:STAN) is also missing from the calendar, having paid £210 million, or 12.3 US cents on the last day of September.

An October payment for Centrica (LSE:CNA) shareholders, compared with the usual mid-November distribution date, adds £85 million to the total after the company declared a big increase from 1.5p to 1.83p a share.

The award on 30 October follows February’s commitment by the British Gas owner to raise the 2025 full-year dividend to 5.5p per share for an increase of 22% on the 2024 dividend.

Games Workshop Group (LSE:GAW), which joined the FTSE 100 index in December, is due to pay 55p a share on 3 October.

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Dividend announcements by the fantasy Warhammer miniatures firm are regarded as a good guide to profit trends given that the £4.8 billion-valued company only pays them out of truly surplus capital.

The group said recently that it will also pay shareholders 85p a share on 21 November, taking the total so far in 2025-26 to 225p against 100p the year before.

Source: interactive investor, ShareScope. Data and dividend conversions to sterling at exchange rate correct on 30 September 2025.