The FTSE 100 currently yields 3%, which may look appealing compared to leading US indices but still falls short of what many investors are seeking.
The FTSE 250 offers a marginally better yield of 3.4%, though that figure is unlikely to generate significant excitement among income-focused investors building a Stocks and Shares ISA.
Fortunately, a number of individual shares comfortably outperform the broader indices when it comes to dividend yield, offering more compelling passive income potential.
Greencoat UK Wind stands out with a very lucrative 9.6% yield, making it one of the most attractive income options in the FTSE 250 right now.
The company recently announced its current year dividend target, representing a 13th consecutive year of growth in the payout per share, a remarkable track record for any listed business.
Uncertainty around energy policy and the tax treatment of renewable energy assets remain risks to watch closely, and the share price has fallen around a fifth over the past five years.
In the financial services space, Standard Life offers a 6% yield, supported by resilient customer demand driven by its focus on retirement savings and pensions.
One risk with Standard Life is that a serious property market downturn could force the company to write down valuations in its mortgage book, which would hurt earnings.
Aberdeen Group (LSE: ABDN) also offers a 6% yield and appears to be regaining momentum after a difficult few years, with net capital generation for the first half growing 47% year-on-year.
Hollywood Bowl, the FTSE 250 leisure site operator, yields 4.7% and grew its interim dividend by over 10% this year, building on its first dividend increase in several years.
The company operates in both the UK and Canada, offering genuine growth prospects, though managing international expansion as a medium-sized business carries risks including exchange rate fluctuations and management distraction.
Reckitt Benckiser (LSE: RKT) rounds out the list, with its FTSE 100 shares down 9% over the past five years while the broader index grew 56%, making the stock look notably undervalued on a relative basis.
The consumer goods company’s 4.1% yield adds to its appeal, and this week Reckitt announced a 5% increase in its interim dividend per share.
Strong brands including Dettol and Nurofen give Reckitt meaningful pricing power, which could help it manage cost inflation, while its global distribution network provides scale and reach across international markets.
Variable performance and historical product liability claims remain risks, but the business appears to be on a more stable footing following the well-documented troubles in its nutrition division.