Approaching the end of the tax year, I wondered how investors could fully employ their shares and ISA shares. One idea? Use it to build a passive stream of dividend income.

By investing a full allowance of 20,000 GBP in the spread FTSE 100 Dividend shares, the investor may generate high income today, which are also constantly increasing in the future. It is tax -free in ISA, which makes it even more attractive.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice. Readers are responsible for implementing their own diligence and obtaining professional advice before making investment decisions.

It’s ambitious, but not unreal. Plenty FTSE 100 Actions today offer stunning dividend profitability.

How to get high performance from FTSE 100

Legal and general group gives 8.74%while British American Tobacco gives 7.62% and A group of securities pays 7.37%.

It is vital to remember that high yields can be risky. Just because the company pays a immense dividend today does not mean that it will always be. The council must generate enough money to keep the payments. In addition, a high level of profitability can be a sign of a falling share and fight price.

That is why I believe in the construction of a sustainable portfolio in different sectors, helping to reduce the risk if one supply stumbles.

One of the dividends that stand out as worth considering Taylor Wimpey (LSE: TW). The house builder currently gives a powerful 8.37%, and it is expected that next year it will escalate to 8.56%.

The management says it “Obliged to a balanced ordinary dividend that grows over time”Although, as I said, this is not guaranteed.

House builders had a bushy ride. The high mortgage rates and the crisis of the living cost suppressed demand, while sticky inflation increased the costs of the workforce and materials.

The Labour promise for the construction of houses 1.3 million in the next five years can also escalate supply, affecting prices. Although I suspect he will emphasize this ambitious goal.

The price of Taylor Wimpey’s shares has actually dropped by 20% in the last 12 months, which is a blow. As someone who has shares, I expect that he will regain this loss and more when inflation is finally overcome and interest rates begin to fall.

I support shares to recover

Today, Taylor Wimpey looks decent value, trading 13.8 times earnings. For me it is a solid long -term buying and owner. But actions can take some time to recover.

I would not consider placing all actions and dividing the ISA into one or two highlights. Diversification key. By adding less lower inclusion, such as Sainsbury’s (5.54%) i Bishop (5.42%) can give me balance. By investing future ISA benefits, the investor could accommodate at least 12 different actions over time, ultimately increasing to about 15.

By introducing 20,000 pounds in a well -balanced ISA and focused on average profitability 7%, the investor would potentially obtain a dividend income of £ 1,400 in the first year. Which is not a bad beginning.

Over time, if companies escalate profits and dividends, this income may escalate and escalate. Especially if the investor throws all his dividends back into his portfolio during work, and attracts them only as income after retiring.

Patience is the key here. Avoid racing tiny -term profits. Instead, aim in a fixed, tax -free income stream that has been growing over the years. For me it is a real strength of ISA action and action.