Legal & General and ITV shares are attracting attention from income-focused investors, with the two stocks combining for an average dividend yield of 7%.
The FTSE 100 and FTSE 250 currently carry average dividend yields of 3.1% and 3.3% respectively, leaving many investors searching for stronger returns elsewhere.
A £20,000 portfolio yielding just 3% would generate only £600 per year, a figure many investors consider insufficient for meaningful passive income.
By contrast, a portfolio yielding 7% on the same £20,000 investment would produce £1,400 annually, representing an extra £800 per year compared to the broader market average.
Legal & General (LSE: LGEN) currently holds the highest dividend yield in the FTSE 100, with its shares offering an 8.1% yield at present.
Demographic trends appear to be working in the company’s favour, as pensioners are expected to account for a fifth of the UK population by 2034.
Retirement services represent Legal & General’s most profitable business area, with operating income from that division climbing 6.5% in 2025.
A £20,000 investment in Legal & General shares at the current yield could generate approximately £1,624 per year, or roughly £135 per month for investors.
Risks remain, however, as the OECD has forecast that some countries could fall into recession if the Iran war drags into 2027, which could weigh on financial services firms including Legal & General.
ITV (LSE: ITV) offers a dividend yield of 6.1%, and its shares trade at a forward price-to-earnings ratio of just 9.2, making it a potentially undervalued income play.
Concerns about the broadcaster’s ability to compete in the increasingly crowded streaming market have contributed to the low valuation, but some investors see this as an opportunity rather than a deterrent.
ITV Studios delivered total organic revenue growth of 3% in the first quarter of 2026, suggesting the company’s turnaround efforts are beginning to show results.
Total streaming hours increased by 13% to 692 million hours in the same period, a figure that points to growing audience engagement with ITV’s digital content offering.
The combination of a relatively high yield, a low valuation, and emerging turnaround potential makes ITV a stock that income investors may want to examine more closely alongside Legal & General.
Both companies carry distinct risks, and a diversified portfolio approach is likely to serve investors better than concentrating capital in either stock alone.