As mentioned on this website, passive income in the form of dividends is a very important part of my investment strategy. To sit back, chill, and allow free money to come into your account each month is a real bonus. If it is in your stocks and shares ISA, it is also tax-free.
No dividend is ever guaranteed and can easily be cut or increased. With inflation being quite sticky in 2025, any money in a bank account that does not match inflation, is losing value in real terms. Therefore, an investor with a passive income strategy is looking to balance a good dividend yield with a rising share price. If you are a ‘buy & hold’ investor who is happy to ride out fluctuations in the share price, dividend yields of over 5% are ideal. It is all about balance.
Below is the FTSE 100 with their current dividend yields. These will change daily as the share price changes. An investor should also pay attention to dividend history as well as the dividend cover ratio.
How to read:
Data is in name order
Those names in Green have current dividend yields above 5%
Those yields in yellow and with red text have had recent dividend cuts. Please research as to why.
The data is at 02/01/2026: