Having been an investor for almost forty years, my investing strategy has evolved over time. I’m a substantial fan of two things right now. First, value investing, which my hero Warren Buffett defines as buying great companies at fair prices. Secondly, I love collecting passive income in the form of stock dividends.

Fantastic FTSE 100 dividends

As a value/dividend investor, I have found many of my best stocks on UK stock markets FTSE100 index. Indeed, my family portfolio currently includes over 20 different Footsie i FTSE250 shares. We bought many of them because of the highest dividend yield on the market.

Of course, the FTSE 100 is a wide range, especially in terms of size. For example, it includes huge companies worth as much as £197.3 billion, as well as much smaller companies worth around £3.5 billion. Additionally, not all Footsie stocks pay dividends, and top cash yields can exceed 9% per year.

Interestingly, the expansive majority of passive income/share dividends in the FTSE 100 come from just a few companies. In fact, more than half – around 53% – of all FTSE 100 dividends for 2025 should come from just 10 stocks.

Three dividend dynamos

Take, for example, these three large-cap UK stocks, which together will pay out almost a quarter (23.4%) of all expected FTSE 100 dividends this year:

The total expected dividend from these three global Goliaths in 2025 will be £18.6 billion. That’s around £650 for each of the 28.6 million households in the UK. However, this valuable passive income is intended only for the shareholders of these companies. Additionally, future dividends are not guaranteed, so they can be cut or canceled at compact notice.

Universal Unilever

My family portfolio includes one of the following dividend princes: Unilever (LSE:ULVR). We acquired this Anglo-Dutch FMCG manufacturer for its mighty brand portfolio and decent dividend yield.

I see Unilever as an entity that will survive in the long run. It was founded in 1929, before the massive crash of the American stock market triggered the Great Depression. Additionally, more than 3.4 billion of the world’s 8 billion people employ Unilever products every day. In other words, its brands are not only well-known, they are everywhere.

Unilever shares currently offer a dividend yield of 3.4% per annum, just above the FTSE 100 Index’s annual cash yield of 3.2%. However, the group has a long history of raising this annual payout and its shares are less volatile than the UK stock market as a whole.

I sleep well at night knowing that Unilever’s extensive portfolio of brands – beauty and wellness, personal care, home care, nutrition and ice cream – are selling while I fall asleep. Even during dramatic economic downturns, people need to wash, eat, and spotless their clothes, their homes, and themselves.

Unfortunately, another global recession is coming – the only question is when. During economic downturns, consumers tend to tighten their belts. This would likely impact Unilever’s revenues, margins, profits and cash flow. Still, I see this stock as a long-term hedge for powerful passive income!