I like these FTSE 100 shares with 5%+ yields for passive income

first_img Andy Ross owns shares in National Grid. The Motley Fool UK has no position in any of the shares mentioned. 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I like these FTSE 100 shares with 5%+ yields for passive income Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Andy Ross Learn how you can grab this ‘Top Income Stock’ Report now We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign.But with this opportunity it could get even better.Still only 55 years old, he sees the chance for a new “Uber-style” technology.And this is not a tiny tech startup full of empty promises.This extraordinary company is already one of the largest in its industry.Last year, revenues hit a whopping £1.132 billion.The board recently announced a 10% dividend hike.And it has been a superb Motley Fool income pick for 9 years running!But even so, we believe there could still be huge upside ahead.Clearly, this company’s founder and CEO agrees.center_img Andy Ross | Saturday, 15th May, 2021 | More on: AV NG The Motley Fool UK’s Top Income Stock… Simply click below to discover how you can take advantage of this. Enter Your Email Address I like the idea of generating passive income from investing in shares that can pay a sustainable dividend yield. Companies with strong business models and a history of returning money to shareholders fit the bill. Sustainable passive incomeAviva (LSE: AV) has been guilty of cutting its dividend. Although in the most recent case, it was told to by its regulator because of the pandemic.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The dividend has been reset at a lower level than in 2019. From a passive income point of view, sustainable dividends are good, so this might be no bad thing. A smaller dividend that is less susceptible to being cut is, better than a higher yield that needs cutting back in future, I feel.Anyway, with a yield of 5.2% based on the last two dividend payments, Aviva is still a strong dividend payer. Along with the reorganisation of the business, which has seen the insurer sell off many international operations to focus on the UK, Ireland and Canada, I think Aviva is well positioned to deliver ongoing passive income to investors. The risk is that as a smaller, leaner business it’ll generate lower earnings per share, which could put pressure on the dividend.Reliable and regulatedNational Grid (LSE: NG) did not cut its dividend at all during 2020. The steady nature of its mostly-regulated business means its revenues and profits were largely unaffected by the pandemic. Indeed, the dividend went up 2.6%, which against a backdrop of many companies cutting their dividends is no mean feat.The company is, I think, very serious about transitioning into and supporting the green economy. By that I mean energy generated by renewables, such as wind power and solar. For example, this year it has announced it will be acquiring Western Power Distribution (WPD), focusing it more on electricity over gas. WPD is the UK’s largest electricity distribution business.In line with that, National Grid will also look to sell a large stake in National Grid Gas during the course of this year. As with previous large disposals this could lead to a special dividend for shareholders – potentially. That would be good from a passive income point of view.National Grid’s Ventures business, which is unregulated and is building interconnectors between the UK and Europe, could provide growth, alongside the acquisition of WPD.The company’s main attraction, for me, is the dividend. It currently has a dividend yield of around 5.2%.The downside is that most of National Grid’s income is regulated. That makes it harder to raise prices, it has a lot of debt and the WPD acquisition means its UK assets make up more of its portfolio than the US, making it potentially vulnerable to UK-specific issues.National Grid, in my opinion, is a leading FTSE 100 share for providing passive income. That’s why I’ll hold on to my shares.  Image source: Getty Images. last_img

Leave a Reply

Your email address will not be published. Required fields are marked *