Aviva (LSE: AV.) currently offers a dividend yield of 6.3%, which is more than double the FTSE 100’s average yield of 3%.
With Aviva shares trading at 620.8p and paying 39.3p in dividends over the past year, investors would need to purchase 42,168 shares to generate £1,381 in monthly passive income.
That total outlay would come to £261,778.94, representing a significant capital commitment to a single stock.
Concentrating such a large sum in one company carries considerable risk, particularly given Aviva’s exposure to the insurance cycle and current downward pressure on premiums.
Diversification across high-yielding UK stocks could help mitigate those risks, with Legal & General offering a yield of 8.1% and British American Tobacco providing 5.2%.
For investors who do not have £262,000 available immediately, a phased approach may still make the target achievable over time.
Assuming Aviva shares appreciate by an average of 3% annually, alongside equivalent dividend growth, an investor starting with £26,200 and contributing £262 monthly could reach the target within 18 years.
It is worth noting that dividend payments are never guaranteed, and average UK rent is unlikely to remain at £1,381 per month given the effects of inflation over such a period.
Aviva shares have fallen 10.3% so far in 2026, which means the cost of accessing the company’s future dividend stream is now correspondingly cheaper for new investors.
The insurer’s most recent first-quarter trading update showed general insurance premiums rising 19% year on year to £3.4bn, pointing to strong underlying Business momentum.
With a forward price-to-earnings ratio of 13.5, Aviva’s valuation does not appear stretched, which some investors may view as an attractive entry point into a high-yielding stock.