Building passive income isn’t something that happens overnight. But too many investors sit around waiting for the perfect entry point — and end up doing nothing as markets move on without them.
That hesitation is often driven by one fear: that share prices will keep falling.
But here’s the thing — that ‘perfect’ moment might never come.
The FTSE 100 has already pulled back from its highs, and that’s quietly created an opportunity. In fact, some high-quality UK shares are now offering yields that looked far less appealing just months ago.
That’s why, instead of waiting for a deeper decline, I’d start building a passive income portfolio today — while this window is still open.
Dividend star
One way I’d start putting this into action is by looking at high-quality dividend payers that have been dragged lower in the recent volatility.
A great example is insurer Aviva (LSE: AV.). Its share price has fallen around 15% in the recent wobble, pushing the dividend yield back up to 6.6%.
That’s exactly the kind of setup I’m looking for.
Despite the share price weakness, the underlying business continues to perform strongly. In its 2025 results, the blue-chip company increased its dividend by 10% and launched a new £350m share buyback programme, helping offset dilution from its acquisition of Direct Line.
And this isn’t a one-off. Over the past five years, dividends per share have grown at a compound annual rate of 15.5%, supported by rising profitability. In 2025 alone, operating profit jumped 25% to £2.2bn.
Strong growth — even in a tougher market
Dig a little deeper, and it’s clear why Aviva continues to stand out.
This isn’t a business that’s simply holding steady. It’s pushing ahead. In fact, it reached its 2026 targets a full year early — and is already setting its sights higher.
That progress isn’t coming from just one area. It’s broad-based. Insurance premiums are climbing, its wealth arm is pulling in record inflows, and demand for retirement products is rising as the UK population gets older.
And there’s a bigger picture here too.
Management is positioning the business for the future — investing in areas like wealth management, artificial intelligence, and retirement solutions.
But this is still insurance — and that means cycles.
Right now, conditions are far from easy. Claims inflation remains elevated, competition is intense, and pricing pressure hasn’t gone away. These are the kinds of challenges that can squeeze margins across the sector.
Which is exactly why scale matters.
The insurer operates at a level few rivals can match, serving more than 25m customers globally — with over 7m holding multiple products.
Behind the scenes, its in-house repair network, Solus, cuts costs by around £500 per claim, giving it greater flexibility when pricing pressure builds.
It’s also a business with deep roots. I expect it to remain competitive after more than three centuries navigating industry change — even as trends like autonomous vehicles and AI reshape the market.
Bottom line
I’ve been slowly accumulating Aviva over the years, and this latest dip only reinforces why. Its scale, resilience, and long-term growth make it a rare business built to endure. In my ISA, it’s a classic buy-and-hold stock, helping me build long-term wealth. But it’s far from the only opportunity I’m watching in this volatile market.
