Many ISA investors will be rushing to exploit up their annual contribution relief before April 5, or at least wondering what to buy for the 2026/27 tax year.

And with inflation expected to rise amid chaos in the Strait of Hormuz – a key artery of global trade – passive income stocks are likely to remain popular in the coming months. Especially those offering very high dividend rates.

With this in mind, we present a portfolio of five stocks with an attractive rate of return of 7% over the next 12 months.

Lots of options

The FTSE100 (+21.1%) i FTSE250 (+11.8%) both companies have performed well over the past year, but there are still plenty of juicy high-yield stocks available. According to my calculations, there are over 40 companies in the indexes that achieve profits of 6% or higher.

While some of these will undoubtedly be yield traps, there is enough on offer here to build a solid, high-yield portfolio. For example, the current average rate of return below is 7%, assuming investments are equally weighted.

Life insurance giant Legal & General boasts the highest return on the FTSE 100. A yield of over 9% would normally be a wake-up call, but the group has committed to returning over £5 billion to shareholders between 2025 and 2027.

As part of this, it will make the largest share buyback in its history (£1.2 billion). Meanwhile, another insurer, Aviva, is performing well and management is firmly committed to increasing the dividend over time.

TBC Bank operates in Georgia, where mighty economic growth and increasing exploit of digital banking are generating impressive earnings growth.

The iShares MSCI Target UK Real Estate ETF offers broad exposure to the UK property market through real estate investment trusts (REITs).

Please note that tax treatment depends on each client’s individual situation and may change in the future. The content of this article is for informational purposes only. It is not intended to be and does not constitute any form of tax advice.

Risk

It must be admitted that this portfolio is strongly focused on the financial sector. We have two insurers operating significant asset management companies and a bank. This therefore increases the risk of concentration.

If the tragic war in Iran escalates and drags on for months, it could result in a global economic downturn. This disruption would not benefit TBC Bank (which operates in a key east-west logistics hub) or asset managers, who may experience net outflows.

In a recession, a UK real estate ETF would also come under downward pressure.

Resistance

ITV would certainly not be immune to an economic downturn as advertisers would quickly cut back on spending. However, I believe that FTSE 250 shares offer diversification as well as decent value today, with a yield of 6.1% and a forward price-to-earnings ratio of just 9.4.

ITV performed well in 2025 despite a complex year (it also had a mighty 2024, driven by the Men’s European Championship). This summer, the broadcaster will show 19 additional FIFA Men’s World Cup matches compared to 2022, with more matches available during peak times. This means that ad performance should be better this year.

Meanwhile, the ITV Studios division continues to perform well due to mighty demand from global streaming platforms. Studios and ITVX are helping to offset the decline in established TV advertising.

Of course, dividends change and it is uncertain what this portfolio will hold in the future. But I think ITV could make a significant contribution. A five shares ISA worth £20,000 would generate a passive income of £1,400 a year.