Events may finally be moving in favour of FTSE 100 income stocks. As volatility hammers US growth stocks, UK blue-chips are standing firm while offering incredible yields of 8%, 9%, even 10%.

The downside? They haven’t delivered much in the way of share price growth over the last decade. This may be about to change.

US tech mega-caps have left old-school FTSE 100 blue-chips in the shade. The UK’s once-dominant financial sector has struggled, with banks, insurers and asset managers finding the going tough. While banks are now on the up, insurers and asset managers remain in the doldrums. They could be next to stage a recovery.

Is it time to buy dividend shares?

Donald Trump’s presidency has hit Wall Street. US equities already looked expensive. This could boost the attraction of more stable, higher-yielding options like FTSE financials. I’ve been loading up on them in recent years. So far, I’ve picked up lots of dividends but not much growth.

UK insurers offer stability and, crucially, incredible income. One standout for me is Phoenix Group Holdings (LSE: PHNX).

Phoenix specialises in buying up closed life and pension funds and running them efficiently. I hold the stock, and while it’s been a solid source of income, its share price has been underwhelming. Over the past year, it’s up a modest 4%, but over five years, it’s actually down 25%. Phoenix shares have held firm over the last turbulent month. Which is something.

Stubbornly high interest rates aren’t helping. When investors can get 4% or 5% on cash or government bonds with little risk, they’ve less incentive to expose their capital to stocks like Phoenix. When rates fall, that could change. But inflation is sticky, so central banks may keep rates higher for longer.

Maybe one day I’ll get growth too

Right now, Phoenix has a jaw-dropping yield of 10.2%, the highest in the FTSE 100. Yields this high are often unsustainable, but as far as I can see, Phoenix is good for it. No guarantees though. The board must keep finding new business to maintain cash flows and sustain payouts.

That won’t be easy though. This is a competitive market. Phoenix has spotted a new opportunity in bulk annuities, but so has every other major insurer. If trade tariff uncertainty triggers a stock market slump, that will hit the value of the whopping £280bn of assets it has under administration. The board cut even use the uncertainty to slip through a dividend cut.

The yield is forecast to hit 10.8% this year. I’m reinvesting every penny to pick up more stock at today’s low price. But will the share price ever rise?

The 14 analysts offering one-year share price forecasts have produced a median target of 574.5p. If correct, that’s an increase of just over 11% from today. That would give me a total return of almost 22% if true. We’ll see.

I think now’s a good time to consider income stocks like Phoenix. It’s decent value with a price-to-earnings ratio of around 15. That said, I also thought it was a good time to buy 18 months ago. But when I look at the dividends I’ve received so far, I don’t regret it. The next lands on 21 May. It’s in the calendar.