The FTSE 100 contains some of the most generous dividend stocks in the world. Today, two companies yield more than 7%, three pay over 6%, and another seven offer 5% or more.
That comfortably beats the top savings accounts, with the added potential for share price growth too. Of course, shares carry more risk than cash. Dividends aren’t guaranteed and prices can be volatile. But that’s the trade-off for the superior long-term return potential of equities. So which income shares do I rate today?
Legal & General shares are an income machine
Looking at my own portfolio, three dividend shares sectors stand out. First up is insurer Legal & General Group (LSE: LGEN). It currently offers the highest trailing yield on the entire FTSE 100 at 7.98%.
Ultra-high yields can signal trouble. Often they reflect a weak share price and raise questions about sustainability. But I think this payout looks solid. Legal & General has increased its dividend in 14 of the past 15 years. The only interruption came during the pandemic, when Legal & General froze its dividend at 17.57p per share before resuming growth of around 5% annually.
Future dividend growth may slow to roughly 2% a year, but that still looks respectable given the generous starting yield.
The share price has been underwhelming. It’s up 13% over one year but broadly flat over five, lagging rival Aviva. Yet I see scope for recovery over time. For me, it’s well worth considering for a high and hopefully rising income, as part of a broader portfolio.
Two more FTSE 100 opportunities
I hold around 15 stocks in total. Two other income names I like operate in very different sectors: oil major BP (LSE:BP.) and housebuilder Taylor Wimpey (LSE:TW.).
BP is controversial as it renews its focus on fossil fuels despite climate concerns, and tries to breathe fresh life into its boardroom. The shares are up just 6% over the past year, but they’ve risen 67% over five years, with all dividends on top. Shareholder payouts have been bumpy, but have risen at an average rate of 4.66% a year for the last five years.
The energy sector is cyclical, and recent troubles could be a good opportunity to get in while BP is down. Despite the green transition, the world will need oil and gas for years to come. The yield is a meaty 5.2%.
That pales alongside Taylor Wimpey, which boasts 8.28%. The housebuilding sector has struggled with affordability pressures, higher labour costs, elevated mortgage rates and post-Grenfell penalties over cladding safety. Even so, Taylor Wimpey still generated £420m of profit in 2025, a solid result given the backdrop.
The board did trim the dividend by 1.25% in 2024, but the yield remains strikingly high. If interest and mortgage rates ease, housing affordability should improve, potentially supporting both earnings and the share price.
All three stocks carry risk. That’s why I’d only hold them within a diversified ISA portfolio and with a long-term mindset. Dividend investing is about patience. Reinvesting income, allowing it to compound, and giving businesses time to grow can build serious wealth over the years. The true rewards from high-yield shares don’t appear overnight, but can be substantial for those prepared to wait.
