Dividend stocks really are amazing things. After all, there are very few opportunities in life to earn some cash from doing nothing. And as Warren Buffett once said: “If you don’t find a way to make money while you sleep, you will work until you die.”
With this in mind, here are five high-yielding shares that could unlock a magnificent income stream over the next 12 months.
The five in the table below are all FTSE 100 stocks, known for having some of the UK’s most valuable companies, typically boasting strong balance sheets and reliable earnings.
While dividends can be unpredictable, a company within the FTSE 100 theoretically should offer more consistent payouts. This is what makes them particularly attractive for investors seeking a passive income.
|
Stock |
Yield (%) |
|---|---|
|
Legal & General (LSE:LGEN) |
8.8 |
|
Land Securities Group |
7.3 |
|
Aviva |
6.5 |
|
NatWest Group |
5.9 |
|
Persimmon |
5.6 |
|
Average |
6.8 |
As of 2nd April, their average yield stands at a compelling 6.8%. If this yield is maintained, a £20,000 investment evenly distributed across these five stocks could generate dividends of £1,360 over the coming year.
While many stocks might boast higher yields, especially those outside the FTSE 100, caution is advised. Typically, these yields are based on historical data and may not reflect current financial realities.
Take, for instance, Robert Walters. Presenting a staggering yield of over 20%, this recruitment firm ranks high among dividend stocks in the FTSE All-Share index. However, the reality is that they’ve suspended their payouts due to challenging market conditions. Thus, what appears attractive might not always be the case.
High yields can also indicate that investors anticipate cuts to dividends, so it’s essential to approach these stocks with a discerning eye.
Among the five stocks highlighted, Legal & General stands out with the highest return—it’s also part of my personal portfolio. They have a strong history of increasing dividends; however, a declining share price has contributed to a growing yield over time.
|
Financial year |
Dividend (pence) |
Share price (pence) |
Yield (%) |
|---|---|---|---|
|
31.12.21 |
18.45 |
297.5 |
6.2 |
|
31.12.22 |
19.37 |
249.5 |
7.8 |
|
31.12.23 |
20.34 |
251.1 |
8.1 |
|
31.12.24 |
21.36 |
229.8 |
9.3 |
|
31.12.25 |
21.79 |
261.9 |
8.3 |
Nevertheless, I don’t foresee any immediate red flags. In 2025, Legal & General’s core operating earnings per share grew by an impressive 9%, securing £11.8 billion in new pension schemes to manage. By the year’s end, the company successfully managed £1.2 trillion in assets, reflecting a £62 billion growth.
However, the stagnant share price persists as a concern. Growth investors might wish to explore alternate options.
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James Beard has positions in Legal & General Group Plc and Persimmon Plc. The Motley Fool UK has recommended Land Securities Group Plc, London Stock Exchange Group Plc, and Persimmon Plc. The opinions expressed in this article are solely those of the writer and may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners, and Pro. At The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
Motley Fool UK 2026


