The FTSE 100 is an absolute treasure trove for passive income seekers right now. It’s packed with top dividend stocks, particularly in the financial services sector.

One of my faves is wealth management and investment firm M&G (LSE: MNG). Despite its share price dropping 10% in 2024, it remains a dividend powerhouse. With a trailing yield of a scarcely believable 9.9%, this stock continues to be a dream for income-focused investors like me.

M&G has carved out a niche as a diversified investment manager, investing across equities, fixed income, alternative investments and real estate. This diversification reduces risk and allows M&G to weather changing market conditions.

The share price hasn’t lived up to the income

Like any asset manager, it’s right on the front line of any market downturn. Its share price performance has been less than stellar for some. It’s actually down 18.15% over the last five years, while the FTSE 100 as a whole rose more than 8%.

These have been challenging times, with the pandemic, energy shock and cost-of-living crisis. But that hasn’t stopped US shares from soaring, especially in the last couple of years. During this period, M&G lagged. As a global operator, it’s also exposed to the UK, European and emerging markets, which have trailed the US badly. They look cheaper as a result though, and could be due a recovery.

M&G’s failure to fly during the US upswing raises concerns about how it will fare if this year is tough. What it needs most is a series of interest rate cuts, but with only a couple expected this year, 2025 could prove bumpy too.

Yet I remain a huge fan. Why? The board has a steadfast commitment to returning cash to shareholders, steadily increasing dividend payments over time. The yield is forecast to hit 10.4% this year, supported by strong cash flows, a solid balance sheet and prudent financial management. While dividend per share growth has slowed, it’s hard to complain.

This is why I buy FTSE 100 shares

Last year’s price drop signals an opportunity for long-term investors like me. Trading at 15.71 times earnings, M&G shares are reasonably valued, in line with the FTSE 100 average. While not exactly dirt cheap, they’re nicely priced for those focused on income. I’d add more to my portfolio if I didn’t already hold a significant stake.

M&G is also making strategic moves to expand its client base and enhance digital capabilities, targeting growth in an increasingly competitive market. But for me, the primary appeal lies in the income. By reinvesting dividends, I’m compounding my returns, generating even more income over time.

Market volatility and regulatory pressures remain a challenge. Still, I’m willing to weather the uncertainty. Growth will come, given time. At least I hope so. I’m enjoying an excellent second income while I wait.

Investing in M&G isn’t just about chasing share price gains. It’s about building a reliable income stream. For patient investors like me, it offers a blend of high yield and stability, even in uncertain times. I should get my next dividend payment on 8 May. I’ve already circled the date on my calendar.