This FTSE 100 dividend stock could help you to quit your job

Man making notes on graphs and charts

With the FTSE 100 yielding around 3.8% at the present time, many investors may wonder if a tracker fund could be worth adding to their portfolio. While doing so does make sense given what is a relatively generous yield, the reality is that it is possible to generate a significantly higher yield than the FTSE 100 at the present time.

In fact, one stock in the index currently has a 6% dividend yield and is expected to deliver further dividend growth in future. Alongside another high-yielder which is listed outside of the FTSE 100, now could be the perfect time to buy it for the long run.

High dividends

The company in question is motor insurance specialist Admiral (LSE: ADM). It has a solid track record of dividend growth. In the last two years it has increased dividends per share by 63%, with it paying out 184.2p per share in dividends in the 2016 and 2017 financial years combined. At its current share price, this would work out as an annualised dividend yield of around 4.7%. However, with dividend growth ahead over the coming year and next year, it offers a significantly higher yield than the FTSE 100.

In fact, Admiral is expected to raise dividends per share by 15.6% this year, followed by further growth of 8.2% next year. As such, its dividend yield for the current year is due to be 5.7%, with this figure set to rise to 6.1% in 2019. As such, it offers a dividend yield that is around 50% higher than that of the FTSE 100. And with its business model continuing to be highly successful in what remains a competitive industry, the prospects for further dividend growth beyond 2019 seem to be favourable.

Improving outlook

Also offering an impressive income outlook is employee services provider Personal Group(LSE: PGH). The company released a positive trading update on Friday which showed that it has made a good start to the year and is performing in line with management expectations. All three of its business segments are performing ahead of the same period of last year, with its salary sacrifice business also delivering encouraging performance.

Looking ahead, the company is expected to deliver a rise in earnings of 5% in the current year, followed by further growth of 9% next year. It remains upbeat about its future prospects according to its recent update, while a focus on rationalising its supply chain could help to make it more efficient over the medium term.

With a dividend yield of around 4.8%, Personal Group could offer an impressive income outlook. It has a sound track record of growing dividends. In the last four years they have risen at an annualised rate of 5.1%. Further growth which is ahead of inflation could be on the cards for the company, which may make it more appealing for income-seeking investors.

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Peter Stephens owns shares of Admiral Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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