Can you imagine earning a four-figure passive income from UK dividend stocks? With inflation still squeezing budgets, that could make a big difference for a lot of us.
But how much could a £20,000 Stocks and Shares ISA generate in income? That depends on how generous the dividend yield is on the shares you own. The good news is there are hundreds of high-yield UK dividend shares that could supercharge your ISA income.
Here are five, which — with an average dividend yield of 8.4% — could deliver a £1,680 income over the next year, based on a £20k lump sum invested equally across them.
Two top trusts
I like the idea of holding real estate investment trusts (REITs) for dividends. In fact, they’re set up to furnish investors with a dependable income — sector rules state 90% or more of annual rental profits must be paid out.
I hold a number of investment trusts myself. And a couple that I’m also looking at are Alternative Income REIT and Tritax Big Box REIT. These businesses have their tenants locked down on ultra-long contracts — weighted average unexpired lease terms are 17.2 and 10.2 years respectively.
This on its own doesn’t eliminate dividend threats. After all, occupancy and rent collection issues can spring up if their clients go bust. However, these trusts have dozens of tenants, which significantly reduces the danger.
This durability underpins healthy dividend yields of 4.9% for Tritax and 7.4% for Alternative Income
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10%-plus dividend yields
Renewable energy producers can also be a reliable source of dividends. Two I think are worth considering today are Octopus Renewables Trust and Greencoat UK Wind. Their yields are an enormous 11.5% and 11.3% respectively.
Electricity is in high demand across the economic cycle, providing steady cash flows these businesses can pay out to shareholders. These companies have fallen sharply in value more recently, reflecting worries of lingering inflation and its impact on interest rates. Higher rates push up borrowing costs and dent profits.
I’m not expecting this to impact either Octopus or Greencoat’s dividend prospects, though, given the strength of their respective balance sheets. Over time I also expect their share prices to recover as green energy demand balloons.
A FTSE 100 income share
Admiral Group (LSE:ADM) is another top dividend share to consider. With a 7% yield, it’s actually the fourth-highest yielding share on the FTSE 100 today.
The recurring cash it receives from insurance premiums helps underpin its chunky dividend payments. While it faces competitive pressures and cost strains, no share is completely without risk, as I’ve shown. In this case, I think Admiral’s defensive qualities still make it a top income stock to consider.
History shows that general insurance demand remains stable across the economic cycle. This is especially the case in the motor segment. As the UK’s largest provider in this area — it had insured 5.8m cars as of mid-2025 — Admiral also has significant scale and brand strength to boost profits and by extension dividends.
