The FTSE 100 currently yields around 3%, while the FTSE 250 offers slightly more at 3.3%, making UK equities an attractive hunting ground for income investors.
Across both indexes, a number of stocks stand out for their notably generous dividend yields, ranging from just above 4% to nearly 8%.
Among the most prominent names are Legal and General Group at 7.7%, Aviva at 6.2%, ITV at 6.2%, and Domino’s Pizza Group at 6%, all of which offer meaningful income potential.
Other notable yielders include BP (LSE: BP) at 4.8%, British American Tobacco at 5.3%, NatWest Group at 5.2%, and British Land (LSE: BLND) at 5.5%.
Sainsbury’s and Greggs round out a broader list of high-yield options, offering 4.4% and 4.2% respectively for investors seeking diversification across sectors.
Not every name on this list is without risk, and British American Tobacco faces structural headwinds as the number of smokers globally continues to decline over time.
Greggs, meanwhile, is contending with its own growth challenges, even as its dividend remains a useful source of income for shareholders willing to accept that uncertainty.
British Land and NatWest Group stand out beyond their yields, with both companies carrying price-to-earnings ratios below 10, suggesting their shares may still trade at attractive valuations.
British Land’s combined annual dividend currently stands at 23.12p per share, based on its final dividend due in July and the interim dividend it paid in January.
An investor targeting an additional £150 per month in passive income would need to hold 7,786 British Land shares, which at a share price of 414.2p would cost approximately £32,249.61.
One of the more notable risks facing British Land is the potential long-term impact of artificial intelligence on demand for office space, should AI begin displacing significant numbers of office-based workers.
However, the current picture is more nuanced, as AI companies are themselves actively seeking office leases in London, which has provided direct support for British Land’s business in the near term.
British Land owns 5% of the Central London office market and is currently seeing occupancy in the capital reach its highest level in 20 years.
The company reported a 5% increase in operating profit to £294m for the year to March 2026, reflecting solid underlying momentum across its portfolio.
Looking ahead, British Land is guiding for earnings per share to rise from 28.9p in 2026 to 30.5p in 2027, with further annual growth of between 3% and 6% expected thereafter, which should support continued dividend growth.