Buying 16 shares of this FTSE 100 stock each week could unlock £1,000 in passive income
The FTSE 100âs home to plenty of high-yielding dividend stocks. And with so many to choose from, it can sometimes be challenging to know where to start. Today (12 January), 13 of them offer a yield greater than 5%.
But among all these interesting opportunities, this stock appears to me to be one of the most promising right now. Letâs take a closer look.
Living off the land
Thanks to high occupancy rates in the offices and shops that it owns, Land Securities Group (LSE:LAND) has been steadily increasing its returns to shareholders in recent years.
Based on its dividend for the year ended 31 March 2025 (FY25) of 40.4p, and a current share price of 640p, the stockâs presently yielding 6.3%. At this level of return, an investor would need to spend just under £16,000 on the groupâs shares to achieve an annual passive income of £1,000.
However, I suspect most people donât have this amount of spare cash lying around. But I reckon itâs possible to get there over time. For example, buying 16 shares a week for three years could generate an income stream from dividends of £1,000 in the fourth year.
This assumes the payout remains unchanged. Of course, the groupâs unable to offer any guarantees that this will be the case.
However, Land Securities has increased its FY26 interim dividend by 2% this year. Analysts are expecting a full-year payout of 41.3p, rising by 7% to 44.2p by FY28.
A shift of emphasis
With an occupancy rate of 97.7%, it might appear difficult to increase earnings sufficiently to cover the higher forecast dividend. However, over the next five years, the groupâs planning to sell £2bn of its offices and invest £2bn+ in residential properties. It sees the sector as offering âhigher income growthâ opportunities and âless cyclicalityâ.
It also owns some prestigious developments, including Liverpool One and Media City in Salford, which means itâs able to increase rents by more than inflation. During the first half of FY26, it claims to have achieved a 10% uplift on re-lettings and renewals.
But at 8.6 times EBITDA (earnings before interest, tax, depreciation, and amortisation), the groupâs debt remains high. Although it hopes to reduce this below seven within two years, this makes its earnings vulnerable to interest rates staying higher for longer than anticipated. A loan-to-value of 40.3% (at 30 September 2025) gives some comfort but I think its level of borrowings is something to watch closely.
Personally, I think the groupâs in good shape. Its portfolio of flagship properties gives it some protection from the cyclical nature of the UK commercial property sector. And helps it outperform its two nearest rivals, Unibail-Rodamco-Westfield and Hammerson, when it comes to retail footfall and occupancy levels.
Thought for the day
Successful investing is about being patient, especially for those of us who donât have large sums available. However, itâs possible to generate healthy passive income streams by investing little and often. For those interested in pursuing a similar strategy, I believe Land Securities Group is a stock to consider.
The post Buying 16 shares of this FTSE 100 stock each week could unlock £1,000 in passive income appeared first on The Motley Fool UK.
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James Beard has no position in any of the shares mentioned. The Motley Fool UK has recommended Land Securities Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
