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For those looking for passive income in a Stocks and Shares ISA, it is difficult to look past dividends. The casual nature of most dividend payments makes it easy for the cash to keep rolling in without lifting a finger.
Here are three equity stocks that I think investors need to know about in 2026.
Many symptoms
I London Stock Exchange Group (LSE: LSEG) is best known for its activities in managing the UK stock exchange. That has been a struggle recently as London faces a shortage of IPOs. But there is more to the company than meets the eye.
The strength of this business means that this is not the highest yield in the market – it is currently 1.65%. Remember, the better a firm’s growth prospects, the lower its yield tends to be. But this is a growing business and growth increases its profits.
Dividend payments have been rising every year for the past 15 years. The budget growth rate over the last 10 years is a staggering 19%. I can count the number of FTSE 100 the shares are higher than those of the fingers of one hand.
Second stock – British broadcaster and FTSE 250 a member ITV (LSE: ITV) – more than just a ‘jam today’ game. paid a dividend of 6.07 %. However, this is a dividend that has not increased in the last few years.
The company is navigating its way from traditional terrestrial television to the wider world of digital media. While this may seem like a tough time for the old ‘third channel’, there are plenty of signs of optimism.
Its service ITVx became profitable two years ahead of schedule. Recent statistics show advertising revenue and total broadcast hours are both increasing.
ITV also produces many of the world’s biggest broadcasters’ shows Netflix, an apple TV, and Disney+. Shows like Love Island again Line of Work it was a huge success, suggesting there may be plenty of life for the old dog yet.
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The third and final stock is another member of the FTSE 250 that may be the best of both worlds. Safestore Holdings (LSE: SAFE) offers a dividend yield of 3.73% which has been increasing every year since 2008.
The current five-year growth rate for the stock is 10.54% and the 10-year growth rate is 12.27%. If those figures continue then investors will be looking at rising income for years to come.
Safestore is a real estate investment trust that generates stable income for loyal customers. About 70%-80% of sales come from existing customers who need storage solutions. This could be one of the reasons that this will be a reliable dividend payer for years to come.
While high interest rates may weigh heavily on the debt burden, the possibility of European expansion would make this an attractive option to consider, in my opinion.
Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice.
