Could £15,000 in these 3 FTSE 100 stocks really deliver £1,230 of passive income?
The FTSE 100‘s recent hammering has pushed up yields on some of the indexâs stocks already paying generous passive income. For example, these three could generate £82 for every £1,000 invested. Letâs take a closer look.
In pole position
At 9%, Legal & General‘s (LSE:LGEN) the Footsieâs highest yielder. In 2025, the insurance, pensions, and asset management group reported a 6% rise in its core operating profit to £1.62bn. In addition, assets under management (AUM) increased by 5% to £1.2trn.
Looking ahead to 2026, the group expects its earnings per share to grow at the top end of its 6%-9% annual target.
One area to keep an eye on is its balance sheet. During the year, its Solvency II ratio fell from 232% to 210% (the regulatory minimum is 100%). And given recent events, Iâm sure the £235bn of equities that the group directly owns have taken a bit of a hit.
However, it last cut its payout during the global financial crisis in 2009. Importantly, its pension risk transfer arm continues to secure plenty of large schemes to manage. This should aide further dividend increases and, in my opinion, makes it an income stock to consider.
Same but different
Retirement specialist Standard Life (LSE:SDLF), which recently changed its name from Phoenix Group, expects an impressive £155m (16.4%) year-on-year improvement in adjusted operating profit for 2026. Itâs also hoping to generate £500m of free cash.
Positively, analysts are also forecasting a 9% increase in its payout by 2028 compared to 2025. It’s currently yielding 8.3%.
With 12m UK customers â one in five adults — itâs particularly sensitive to a domestic economic slowdown. If incomes are further squeezed pension contributions are likely to be one of the first casualties. Its margin could also come under pressure.
However, since its formation in 1825, itâs survived many more challenging times. And itâs operating in a growth sector. The £3.6trn UK retirement income and savings marketâs expected to grow to £6.1trn by 2034. This should help it deliver the earnings and dividend growth that make it, I believe, a share worth considering.
Last, but not least
M&G (LSE:MNG) had a great 2025. During the year, the wealth manager reported £7.8bn of net cash inflows compared to outflows of £1.9bn in 2024. Along with some impressive investment returns, this boosted its AUM from £345.9bn to £375.9bn. It also lifted its Solvency II ratio from 223% to 242%.
This improved financial performance helped deliver a 2% increase in the groupâs full-year dividend. Its annual payout’s been increased every year since its demerger from Prudential in 2019.
Threats to its dividend include increased competition plus lower income than anticipated from its huge investment portfolio. However, 2026âs expected to be another good year, making the dividend look reasonably secure for now. Along with its 7.4% yield, itâs an income stock to take a close look at.
Huge potential
Of course, dividends can’t be guaranteed. However, all three have strong track records of delivering impressive levels of income.
| Stock | Yield (%) | Potential annual dividend from £5,000 investment (£) |
|---|---|---|
| Legal & General | 9.0 | 450 |
| Standard Life | 8.3 | 415 |
| M&G | 7.4 | 370 |
| Average/total | 8.2 | 1,230 |
And by reinvesting the cash itâs possible to create significant long-term wealth. For example, a £15,000 investment (£5,000 in each) could grow to £107,590 after 25 years. At this point, a yield of 8.2% would deliver annual income of £8,822.
Thatâs why dividend shares are so popular with UK investors.
The post Could £15,000 in these 3 FTSE 100 stocks really deliver £1,230 of passive income? appeared first on The Motley Fool UK.
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James Beard has positions in Legal & General Group Plc. The Motley Fool UK has recommended M&g Plc and Prudential 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.
