Two that stand out in May are Supermarket Income REIT (LSE:SUPR) and Primary Health Properties (LSE:PHP).

At current yields of 7.52% and 7.67% respectively, every £1,000 invested in Supermarket Income REIT generates £75.20 a year in passive income, while the same amount in Primary Health Properties delivers £76.70.

That’s more than double the rougly 3% payout UK index investors are earning today!

So, why are these yields so high? And where exactly is the risk?

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.

The investment thesis

Starting with Supermarket Income REIT, this commercial landlord owns a portfolio of large-format supermarket properties, predominantly leased to grocery giants like Tesco and Sainsbury’s on long-duration rental contracts linked to inflation.

The appeal for income investors is quite intuitive. Supermarkets are among the most essential retail formats in the country, often continuing to trade profitably through even recessions. And with a client list of healthy industry titans, this REIT’s income stream looks exceptionally secure.

What’s more, the business has been quietly diversifying its target market. Several of its properties now double as fulfilment hubs for online grocery orders, increasing their operational value to tenants and paving the way for stickier, longer-lasting relationships.

Primary Health Properties tells an equally compelling story. Over 90% of its rental income is funded directly or indirectly by the NHS, effectively translating into cash flow backed by the British government.

But it also has a bit of a secret weapon. Many of its older leases are currently priced below open market rent levels. That means there’s a material pipeline of future rent uplifts on the horizon or, in other words, the group’s income looks set to grow even without acquiring a single new property.

What’s the catch?

As promising and as secure as these cash flows and, in turn, dividends seem, there are some important risks to highlight.

Most notably, each REIT carries significant debt on their balance sheet. And with interest rates still remaining elevated, it’s already translated into notable pressure on margins as well as property valuations. The result has been higher loan-to-value ratios and tighter dividend coverage.

For the time being, shareholder payouts remain relatively secure. But if interest rates start to tick back up due to higher-than-expected inflation, that coverage could get strained.

The bottom line

The macroeconomic risks surrounding the entire REIT sector is tough to ignore. But while some businesses could struggle under increased pressure, there are always exceptions. And finding these exceptions today could result in earning substantial yields in the long term.

In my opinion, both of these REITs could be in this winning category. That’s why I’m already investigating both as potential additions to my passive income portfolio.

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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.

Here I’d like to talk about three top trusts in particular: Tritax Big Box (LSE:BBOX), Social Housing REIT (LSE:SOHO) and Supermarket Income REIT (LSE:SUPR). With forward dividend yields of 5.6% and above, they certainly offer better dividend potential in the near term than most FTSE 100 shares.

Read on to discover why they’re top stocks to consider.

Top trio

Each of these shares enjoys unique advantages that make them ideal for long-term passive income. For Tritax Big Box, these include:

• A diversified portfolio of almost 700 assets.
• Exposure to long-term growth markets like e-commerce.
• A high-quality tenant base like Amazon, Tesco and Iron Mountain.
• Low debts (its loan-to-value sits below 33%).

Social Housing REIT has various qualities of its own, including:

• A focus on the ultra-defensive specialised supported social housing (SSH) market.
• Low property vacancy risks due to housing demand exceeding supply.
• Its tenants are housing associations or councils, meaning rents are underpinned by social care budgets.
• 100% of its contracts are inflation linked.

Food for thought

Meanwhile, Supermarket Income REIT benefits from:

• Its commitment to the largely recession-proof food retail sector.
• A string of blue-chip supermarkets including Tesco, Sainsbury’s, Waitrose and Aldi on its books.
• A portfolio that includes omnichannel stores, reducing the risk from online grocery.
• Exposure to a structural growth market as the UK population rapidly increases.

So how do these qualities translate into dividend forecasts for these REITs’ current financial years? Let’s take a look:

As you can see, yields are least almost double the current FTSE 100 average of 3%. Social Housing has never cut its annual dividends either, while Supermarket Income has raised them every year since it listed on London’s stock market in 2019.

So what next?

However, past performance isn’t a guarantee of future returns. And dividends at each of these REITs could be impacted by rising interest rates that drive up borrowing costs.

These businesses could also run into more specific problems. A recession might cause occupancy to fall at some of Tritax’s logistics sites. Changes to supported housing funding could impact Social Housing REIT’s earnings and dividends. And Supermarket Income could suffer if online grocery shopping accelerates.

However, any passive income share an investor buys comes with risk. And on balance, I think these REITs have the tools to keep delivering market-beating dividends over the long term.

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Want to see how a £20,000 ISA could generate a ton of income? Here’s a simple example.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Building a passive income portfolio

I’ve listed five high-yield stocks from the UK’s FTSE 350 index and their dividend yields. They come from a range of sectors – two financial services companies, two REITs, and a consumer goods business.

• Primary Health Properties – 7.8%.
• Supermarket Income REIT (LSE: SUPR) – 7.5%.
• Aviva – 6.7%.
• Domino’s Pizza – 5.5%.
• M&G – 7.3%.

Now, the average forward-looking dividend yield of those stocks is about 7%. That means if an investor was to split £20,000 across those five names, they could be in line to pocket income of around £1,400.

What’s the catch?

It’s worth pointing out dividends are never guaranteed. And the yield figures I’ve used above are based on forecasts (which aren’t always accurate). It’s also worth mentioning that every stock has risks. So investing money in just five stocks isn’t very sensible.

But the calculation shows what’s possible with an ISA and a selection of dividend stocks. It really isn’t hard to build a decent second income.

Is this 7.5% yield worth a look?

Now, I think all of the stocks above are worth a look today. I haven’t selected them randomly. One I feel is particularly worth highlighting is Supermarket Income REIT. It’s a commercial property company that’s focused on grocery store real estate across the UK and Europe and counts the likes of Tesco, Sainsbury’s, Asda, and Aldi among its tenants.

Looking beyond the attractive yield here, there are quite a few things to like about this stock. For a start, it’s defensive in nature. No matter what happens in the economy in the years ahead, supermarkets are likely to continue operating. When times are tough, people can cut out a lot of discretionary expenses but they can’t cut out food.

Supermarkets also look immune to AI disruption. That’s another plus from an investment perspective. Additionally, the company has blue-chip tenants. These companies are unlikely to suddenly stop paying rent.

Finally, it has a 100% occupancy, an average unexpired lease term of 12 years, and a large proportion of its income is inflation linked. So operationally, it looks pretty robust.

That said, there are risks here. One is debt – at the end of December the company had net debt of £925m. Servicing this debt could put pressure on earnings, especially if interest rates remain high. This, in turn, could impact dividends.

Overall though, I see a lot of appeal in this name from a dividend investing/passive income perspective. I believe it’s worth a closer look.

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What’s more, it doesn’t take a huge amount of money to get the ball rolling. A few hundred pounds is all that’s needed. But someone with a £5,000 lump sum has a lot of flexibility. And with the right stocks, it’s enough to unlock upwards of £350+ passive income overnight with a 7%+ yield.

So how can I do this?

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Earning a 7%+ yield

Right now, there are just shy of 30 companies in the FTSE 350 offering a payout of at least 7%. Some dividend stocks even venture into double-digit territory.

However, it’s important to remember that the higher the yield, the higher the risk… in most cases. It’s the job of an investor to dig deeper, understand the risk and decide whether or not it’s worth taking. And right now, there are definitely some UK shares that the market seems to be underestimating.

One such stock might be Supermarket Income REIT (LSE:SUPR). With a 7.41% dividend yield on the table, if I invest £5,000 today, I’d instantly unlock a £370.50 annual passive income. So is this a buying opportunity? Or is it a trap?

Impressive fundamentals

As the name suggests, Supermarket Income REIT is a commercial real estate landlord that leases properties to supermarkets across the UK and France.

By exclusively dealing with retail giants such as Tesco and Waitrose, the company has had no issues when it comes to rent collection. And as of 2026, all of its properties are currently occupied, generating recurring and reliable rent.

Moreover, the average duration of its leases currently spans 12 years, with 82% including inflation-linked uplifts. This has translated into exceptional cash flow visibility. And it’s how the firm’s been able to continuously hike dividends since its IPO in 2017.

So what’s the catch?

The most immediate issue is debt. Building a real estate empire isn’t cheap. And the company has been borrowing money to help cover the cost. That isn’t unusual, and the generated cash flows are more than sufficient to cover the interest payments.

Until recently, the group had £443.4m of debt maturing before July 2027. In March, this problem was partially resolved by raising capital through a bank loan secured against its joint venture property portfolio with Blue Owl Capital. Essentially, the company borrowed long-term debt to cover short-term maturities.

This has certainly helped reduce near-term refinancing risk. But it’s effectively delaying the problem rather than solving it. And at an interest rate of 5.24%, this new debt isn’t cheap, applying pressure to excess cash flows used to fund dividends.

The bottom line

With new properties recently being acquired, management projects a nice boost to its rental cash flows, helping both improve dividend and interest coverage.

There’s no denying the elevated short-term refinancing risk surrounding this business. But if the company’s successful in restructuring its debt load and continues to collect rent on time and in full, patient investors with a long-time horizon may want to take a closer look at Supermarket Income REIT and its dividend yield.

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The key lies in a combination of dividend stocks and the power of compound interest. But the most important thing is consistency.

Dividend stocks

The stock market lets investors own shares in businesses that can choose what to do with their profits. And some return it to investors as dividends.

Whether or not this is the right decision depends on the company. In some cases, investing it internally can be a better move. 

Sometimes, companies have opportunities to open new venues, develop new products, or acquire other businesses. But this costs money.

When a firm can get a good return on the cash it uses, it creates more value for shareholders. So dividends aren’t always the right choice.

In some cases, though, businesses either don’t have the scope to grow or don’t need cash to do so. And then dividends make sense.

Owning shares in these companies can be a great way of earning passive income. In the best cases, it can even grow over time.

Starting from scratch

Ultimately, earning a big second income involves investing quite a bit of cash. But that doesn’t have to happen on day one. 

Putting aside part of a monthly salary is a really good approach. It takes time to build a portfolio, but the results can be very impressive.

I think a 7.5% annual return is a realistic target. There are no guarantees, but I’ll come back to why I think this is plausible.

Reinvesting dividends at this rate can turn £250 a month into a £1,500 annual second income within seven years. But things kick on from there. 

Within 15 years, the returns grow to £4,672. And after 30 years, investors could be looking at a monthly £1,500 second income.

That’s a nice situation to be in. But this depends on finding opportunities to earn 7.5% a year, so the big question is how to do this.

Supermarkets

One stock that comes with a 7.5% dividend yield is Supermarket Income REIT (LSE:SUPR). It makes money by leasing a portfolio of retail properties.

The firm generates a lot of its income from Tesco and Sainsbury. That’s not a big surprise, but it does create risk. 

Both companies are reliable payers. But if either decides to go in a different direction, they could be tough to negotiate with.

Supermarket Income REIT is – as the name suggests – a real estate investment trust (REIT). That means it has to distribute 90% of its income as dividends. 

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.

Growth opportunities can be limited as a result. But leases do include inflation uplifts, so investors shouldn’t lose out on that score.

Investors looking for a 7.5% dividend yield don’t have unlimited choices. This, however, might be one of the best to consider right now. 

Getting started

Building a second income stream doesn’t take huge amounts of cash – at least not at first. What it does take, however, is time.

That means getting started as soon as possible is very important. And I think there are opportunities right now for investors who can find them.

The post No savings? Here’s how to target a £1,500 monthly second income appeared first on The Twelfth Magpie.

With this in mind, how could someone aim for a four-figure monthly income stream?

It’s all about the yield

Well, someone achieving this yield would need an investment pot of £535,714 to generate a monthly income of £1,250, equivalent to £15,000 a year.

One way of achieving this would be to invest £789 a month for 25 years at an annual growth rate of 6%.

However, as much as I remain a fan of many of the dividend shares on the UK’s premier index, I think there are plenty of other exciting opportunities on the second tier. At the moment, the FTSE 250’s yielding 3.9%.

And this marginally higher return makes a big difference. A fund of £384,615 could generate £1,250 a month. Using the same assumptions above, it would require a monthly investment of £566.

But dig a little deeper and it’s possible to find lots of FTSE 250 shares offering a better return than this. Indeed, there are 24 presently yielding 7% or more.

It pays to shop around

One of these is Supermarket Income REIT (LSE:SUPR). In fact, I have the stock in my ISA.

At the moment, it’s offering a return of 7.6%. To generate £1,250 a month in dividends, £197,368 of the REIT’s shares would be needed. At 6% over 25 years, a monthly investment of £291 would realise this.

Of course, it’s never a good idea to have just one stock in a portfolio.

Supermarket Income makes its money from buying large stores and then leasing them to grocery chains. It now has a portfolio worth £2bn. In common with all real estate investment trusts (REITs), it must return at least 90% of its annual rental profit to shareholders through dividends.

With such a high threshold for shareholder returns it’s easy to see why so many income investors like REITs.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Final thoughts

But dividends cannot be guaranteed. If earnings fall then payouts are likely to be cut or — worse – suspended. How could this happen? Well, if interest rates were to rise then Supermarket Income REIT would face higher borrowing costs.  

Its debt relative to the value of its properties is also going up. Having said that, its loan-to-value of 43% (at 31 March) is comfortably below the 60% limit required by its banking covenants. But borrowing costs are rising faster than its income. A lack of access to finance would limit future expansion.

However, despite these challenges, it remains my favourite REIT. It has blue-chip tenants in a sector of the commercial property market that will always need large properties regardless of whether people want to shop in-store or online.

The group also enjoys 100% occupancy with an average unexpired lease term of 12 years. And over 80% of its income is inflation-linked. It also claims to have the lowest cost/income ratio of 12 of the 13 REITs on the FTSE 350. That’s why I think it could be considered by income investors.

The post How much would someone need to invest in the stock market to target a £1,250 monthly second income? appeared first on The Twelfth Magpie.

With heavy debt burdens weighing on investor sentiment, many REITs have seen their share prices collapse since 2022. But more recently, the higher quality companies in this sector have started showing early signs of recovery. Some of these businesses have even been boosting shareholder payouts, resulting in impressive yields.

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.

Accelerating growth

Among the list of REITs still expanding dividends stands Supermarket Income REIT (LSE:SUPR). It’s currently the only pure-play in the grocery commercial property sector, and acts as the landlord to most of Britain’s largest supermarket giants, including Tesco, Sainsbury’s, Morrisons, and Asda.

The exclusive focus on grocery retail has proven to be quite advantageous. While higher interest rates have certainly created a few headaches for this leveraged landlord, the UK grocery market has been exceptionally resilient throughout the cost-of-living crisis. And for Supermarket Income REIT, that’s translated into reliable and predictable rental cash flows with leases spanning an average of 12 years.

What’s more, with around 82% of the firm’s leases linked to inflation and a series of successful rent reviews executed in the second half of 2025, annualised rental income has seen a welcome 11% bump from £118.5m to £132m.

Yet with another £398m of capital deployed through acquisitions, this growth appears to be on track to accelerate, paving the way to even more impressive cash flows, dividends, and debt reduction over the coming years.

So is this a no-brainer?

Where is the risk?

At a share price of 85p and a dividend per share of 6.15p, investors have the opportunity to lock in an impressive 7.24% yield. That means a £10,000 investment today not only snaps up 11,764 shares, but also unlocks a £724 passive income in the process.

But if rental revenues are set to expand, why is the yield still so high? There are two primary concerns surrounding this business.

The first is the fear that a prolonged conflict in the Middle East will trigger a new wave of energy inflation, delaying interest rate cuts, and directly putting pressure on Supermarket Income REIT’s balance sheet. The second is the fact that earnings simply don’t cover shareholder payouts right now.

With a loan-to-value ratio of 43% as of this month, a significant chunk of the group’s rental income is being gobbled up by interest, resulting in a payout ratio that exceeds 100%.

Obviously, that isn’t sustainable in the long run. But management doesn’t appear concerned, projecting that the expected future profits from its recent property acquisitions will help close this gap.

So where does that leave investors?

The bottom line

If management’s correct, an incoming surge in earnings will flip the script and see a return of cash-covered dividends. But if this growth fails to materialise, shareholders’ payouts could eventually be put up on the chopping block.

So is that a risk worth taking? It might be.

Given the firm’s strong dividend track record so far, and management’s seemingly prudent approach toward capital allocation, Supermarket Income REIT could indeed be an income opportunity worth exploring further. And it’s not the only dividend stock on my radar this week.

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Let’s consider both sides of the argument by looking at one particular high-yielding example that today (11 March) has released its results for the six months ended 31 December 2025.

Bricks and mortar

Supermarket Income REIT (LSE:SUPR), which owns a portfolio of freehold and leasehold grocery stores in the UK and France valued at £2.06bn, has paid dividends of 6.15p a share over the past 12 months. With a current share price of 82.1p, it means the stock’s yielding an incredible 7.5%.

But things get better. Its payout’s been increased every year since it listed in July 2017. This impressive record is partly due to the fact that — in common with all REITs — it has to return at least 90% of its rental profit to shareholders each year by way of dividends.

However, the trust still has to be profitable for it to be in a position to reward shareholders. After all, 90% of nothing is nil.

Importantly, the trust’s able to target paying a progressive dividend because its income is secured via long-term inflation-linked leases. And because of the calibre of its tenants – Tesco and Sainsbury’s to name just two – it has full occupancy and no bad debts.

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.

Adapt and survive

I particularly like Supermarket Income because large supermarkets have evolved over the years to become the hub of the grocery market. With more people shopping online, many started to believe that the industry would transition towards centralised distribution centres. However, large grocers have successfully adapted to this challenge.

Whether someone wants to visit a store, have their groceries delivered, or go and collect what they’ve bought online, the omnichannel supermarket remains essential. I don’t think it’s a coincidence that Ocado Group’s now planning to close some of its customer fulfilment centres.

In my opinion, these qualities make Supermarket Income a great defensive stock. Both the REIT business model — and the grocery sector — can be attractive during times of market volatility. That’s why I have shares in the REIT and why I think others could consider adding some to their own portfolios.

No regrets

However, some are wary of REITs because they, generally speaking, tend to have large borrowings. That’s because most use debt to expand. At 31 December 2025, Supermarket Income’s balance sheet disclosed borrowings of £980m. This gives it a loan-to-value (LTV) of 43%, taking into account some 2026 transactions. Higher interest rates will lead to increased borrowing costs and reduced earnings.

Others investors don’t like the cyclical nature of the commercial property market, particularly in the UK. If supermarket real estate values were to fall, the trust’s net asset value would tumble and its LTV rise. This could limit its future borrowing capacity.

But I still rate Supermarket Income. Compared to the same period a year ago, its latest results show an 11% increase in rental income and a 0.1% improvement in portfolio yield. The group’s targeting a 2% increase in its annual dividend from its next financial year onwards. That’s why I’m happy with my choice of REIT.

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One method is to compare dividend yields. However, an above-average return can be a sign that investors are expecting a cut in a company’s payout.

Could this be the case with these three high-yielding shares that I’ve identified, or are they a great opportunity to start generating a healthy second income stream? Let’s see.

1. Legal & General

My favourite income share at the moment is Legal & General (LSE:LGEN). The FTSE 100 retirement and savings group is presently (27 February) offering a return of 8%, the highest on the index. This assumes the group keeps its pledge to increase its 2025 payout by 2%.

Some of this impressive yield can be attributed to a falling share price. Even so, the stock has a solid track record of raising its dividend. It was last cut during the global financial crisis. And it plans annual rises of 2% up until 2027.

Threats to its earnings (and therefore its dividend) include increased competition and global market uncertainty. The group invests heavily and equities and bonds. A stock market correction, or worse, would be bad news.

However, the group has a huge pipeline of pension schemes that it’s looking to take over and manage. Also, with the State Pension age predicted to rise further, I think more people will turn to third-party providers to look after retirement planning.

2. Land Securities Group

Another stock I like is Land Securities Group (LSE:LAND). It has a £10.8bn portfolio of mainly offices, stores, and retail parks.

Again, its yield has increased more due to its falling share price than a rising payout. Having said that, it’s gone up 9.2% over its past three financial years. Based on amounts paid since February 2025 (40.8p), the stock’s yielding 6.2%.

However, it has to be pointed out that future increases might not be possible due to the volatile nature of the commercial property sector. And with substantial borrowings, if interest rates were to stay higher for longer, this is likely to impact earnings.

But the group’s planning to sell some of its offices to fund an expansion into the residential sector. These are expected to offer a better return. It can also boast of a high occupancy rate, thanks largely to the quality of its portfolio.

3. Supermarket Income REIT

Like Land Securities Group, Supermarket Income REIT (LSE:SUPR) is a real estate investment trust (REIT). This means it must return at least 90% of its qualifying profit each year to shareholders by way of dividends. At the moment, the stock’s yielding 7%.

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.

The REIT buys supermarkets in the UK and France and then rents them to blue-chip grocers. Positively, the quality of its tenants means it doesn’t have a bad debt problem. However, 51% of its debt is floating, which means its repayments will rise if interest rates go up. And in extreme circumstances, falling property prices could lead to a breach of its lending covenants.

Personally, I think the recent announcement by Ocado Group that six of its warehouses are to close over the next three years is proof that the death of the traditional supermarket has been greatly exaggerated.

Investing £10,000 in these three stocks could generate passive income of £710 over the next 12 months. That’s why I think these dividend shares could be considered for inclusion in a high-yielding income portfolio.

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Here’s how large your ISA might need to be for a juicy second income each month.

How much?

The answer to the question of how much you need comes down to the size of the dividend yields on offer. For a £500 monthly (or £6,000 yearly) income, an investor would need an ISA of:

• £120,000 if invested in 5%-yielding shares.
• £100,000 if invested in 6%-yielding shares.
• £85,714 if invested in 7%-yielding shares.

Stock markets have famously rallied over the last couple of years. This has made it harder to find quality, high-yield shares, but there are still plenty out there to choose from.

Purchasing higher-yield dividend stocks can come with greater risk. Large yields can be a product of a tumbling share price, reflecting significant problems facing a company.

But this isn’t always the case. In fact, the London stock market’s packed with strong, diversified companies with leading positions in mature industries.

It’s also worth remembering investors have hundreds of dividend stocks from across the globe to choose from. Why is this important? Holding 15-20 companies, say, in an ISA can help investors effectively balance risk and reward. Even if one of two companies deliver disappointing dividends, the broader portfolio can still deliver a big passive income from year to year.

Fill your dividend trolley

Supermarket Income REIT (LSE:SUPR) is a UK dividend share I’m expecting no drama from in the near term or beyond. It’s raised annual payouts every year since it listed on the London Stock Exchange in 2017.

This reflects the defensive nature of its operations (food retail), as well as its blue-chip client base. Companies like Tesco, Sainsbury’s and Waitrose are unlikely to default on their rent commitments even if times get tough.

This resilience also reflects dividend rules governing real estate investment trusts. These state that 90% of more of their rental earnings must be paid out to shareholders.

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.

Supermarket Income is sensitive to interest rate movements, and profits can fall when rates are higher. But for me this doesn’t take the shine off its excellent dividend credentials. Speaking of which, the forward dividend yield here is bang on 7%.

How long will it take?

As I say, the UK stock market’s packed with brilliant passive income shares. This is just one I think it worth serious attention right now.

But how long would it take to build an ISA of 7%-yielding stocks like this that generates a £500 passive income? If someone can invest £300 a month and get a 9% average annual return, they could hit their goal after just over 11 years.

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