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So far, 2025 has been a busy year on the stock market – and we have close to three-quarters of it still left to run. The FTSE 100 has hit an all-time record high level, for example. But it has also been very turbulent, notably over the past several weeks.
That can seem off-putting, but that depends on the perspective someone takes. I think that, looked at in the right way, it can also be seen as a great opportunity.
The reason is simple: stock market turbulence can often let an investor buy a blue-chip share for a lower price. That is not just about being lower than it was before, but hopefully — and crucially — lower than it will be worth in future.
Such a move can offer the opportunity for capital growth over the years that follow. It also means that an investor can earn a higher dividend yield than if they had paid more for the same share.
A high-yield share to consider
To demonstrate that, I will mention one FTSE 100 share I think investors should consider: asset manager M&G (LSE: MNG).
Over the past five years, its share price has shot up by 49%.
Why? Five years ago, the pandemic had sent panic through corners of the stock market and a lot of share prices were hurt badly. I see parallels with the current uncertainty about US tariff policy and its potential impact on world trade.
So, someone who had put £10,000 into M&G shares five years ago would now have an investment worth close to £15,000.
That is not all, though. M&G’s dividend yield of 10.3% is unusually high among FTSE 100 shares. But the investor who had bought at that lower price five years ago would be earning a yield of over 15% now. So their £10k investment would be earning roughly £1,500 in annual dividends. That is free money simply for owning the shares.
Taking an approach to retiring early
Past performance is not necessarily indicative of what will happen in future, though. While M&G aims to maintain or grow its dividend per share annually, I see risks.
It has struggled with clients pulling more out of its funds than they put in. If that trend continues, it could lead to lower profits and potentially a reduced dividend at some point.
But I reckon the business has a lot going for it. Customer demand in its market is high, it has an existing base of millions of customers across multiple markets and the M&G brand is a powerful one that can help attract new ones.
By buying shares for less than they turn out to be worth over the long term and with higher yields, as in my example above, someone could aim to hit a financial goal for retirement early. Compounding a £100k SIPP at 10.3% annually, for example, it would be worth over half a million pounds within 17 years. At 15%, that would take just 12 years.
Achieving that sort of return from a well-diversified portfolio of FTSE 100 shares is not easy. But, as the example shows, it can become much easier if someone takes advantage of market turbulence.
