3 FTSE shares I like for stress-free lifelong passive income

Jon Smith reveals a few of his favourite passive income stocks ideas at the moment, with current dividend yields as high as 8.15%.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

When it comes to money, people tend to get stressed. It’s stressful enough to try and make money, so when I get to the stage of then investing it, I wanted to try and find options that came make me passive income without all the worry and concern.

Here are some FTSE stocks on my watchlist to fit the bill.

Straight to the bank

First up is Barclays (LSE:BARC). The UK bank will announce the latest dividend alongside the half-year results due out today (1 August). I expect it to be higher than the 2.7p from the same release last year, thanks to continued profitability over this period.

Should you invest £1,000 in National Grid right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if National Grid made the list?

See the 6 stocks

It’s true that the dividend yield has fallen this year, from around 5.5% at the start of 2024 to 3.44% now. However, this is down to the share price rise. In fact, over the past year, it’s now up 52%!

The total dividend per share payment’s been rising for the past few years, and with the bank well into the strategic drive to improve efficiency, I feel the future for the firm (and the dividends) is bright.

It has a strong track record of paying out income over the decades, but a risk is linked to the financial regulators. For example, during the pandemic they advised banks to stop paying dividends to protect cash flow. So this could happen again and is something I can’t really control.

Created with Highcharts 11.4.3Supermarket Income REIT Plc + Barclays Plc + Pennon Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

A consumer staple

A second option is the Supermarket Income REIT (LSE:SUPR). This has a high dividend yield of 8.15%. The share price is down 2% over the past year.

The investment trust owns a portfolio of supermarket real estate sites, which it leases out in order to generate income. The bulk of this is then paid out to investors as a dividend. In order to keep receiving favourable tax status as a REIT, it has to pay out a high amount of profit as dividends. Therefore, I’m confident this will be a lifelong income stock.

One risk is that this REIT’s quite niche, in focusing just on supermarket sites. Even though I think this is a stable area to serve in the consumer staples space, others might disagree. Should this area take a hit, the trust doesn’t have any real diversification.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Decades of constant income

Finally, I like Pennon Group (LSE:PNN). The FTSE 250 stock provides essential utility services and environmental infrastructure. As a result, it serves in a stable industry.

The 11% fall in the share price over the past year has helped to push up the yield to 7.11%. Part of this is down to last year being one of the wettest on record. The resulting increased wastewater flows and pollution wasn’t a great image for the company.

The proposed merger of Sutton & East Surrey Water and Pennons South West Water could provide another boost for finances going forward. The economies of scale and higher efficiencies could translate through to a more profitable overall outfit.

Having paid constant dividends for over two decades, I think this should continue, reducing my stress levels. I’m keeping the FTSE shares I already own and I’m thinking about adding the ones I don’t currently have to my portfolio.

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Jon Smith owns shares in Barclays Plc. The Motley Fool UK has recommended Barclays Plc and Pennon Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Dividend Shares

Stack of British pound coins falling on list of share prices
Investing Articles

Why hasn’t its 9.9% yield boosted the Phoenix share price?

Phoenix Group has a dividend close to double digits, but saw a weak share price performance in recent years. Christopher…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

With average 10% yields, these mid-cap FTSE shares could supercharge a passive income portfolio

Some of the best passive income gems can be found on the UK's smaller indexes like the FTSE 250 and…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Down 25% since January, this resilient dividend stock’s catching my eye

Maintaining the UK’s rail, water, and energy infrastructure isn’t the most exciting business. But it has made this a solid…

Read more »

Calendar showing the date of 5th April on desk in a house
Investing Articles

Here’s how a £20k ISA could produce £1,580 of passive income in the next year

A Stocks and Shares ISA stuffed with dividend shares can be a lucrative source of passive income. Christopher Ruane explains…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Dividend Shares

2 ‘safe’ LSE dividend stocks to consider as global markets sell off

As global markets experience high levels of volatility due to economic uncertainty, investors are piling into these ‘safe-haven’ dividend stocks.

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

2 investment trusts to consider for a Stocks and Shares ISA

These two investment trusts have a different focus -- but our writer sees both as worth considering, one more for…

Read more »

Investing Articles

Deutsche Bank reiterates Buy rating on 9.6% yielding FTSE 250 stock that was “most shorted in UK”

Our writer investigates why a major broker remains optimistic about a FTSE 250 stock that was once the most shorted…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Dividend investors! Here’s what Warren Buffett says builds wealth in the stock market

Reinvesting dividends at yields of 8% or higher looks like a good way of building wealth. But Warren Buffett has…

Read more »