Looking through high-yielding shares in a Stocks and Shares ISA is a great way to earn extra income over time.
The FTSE100 offers a rate of return of 3.1%. That’s quite a decent result, but to earn an extra £1,000 a month from it, investors would need £393,442.62 in the index.
This is where choosing higher-yielding stocks comes in, as investors can aim to earn the same passive income with a lower investment.
British soil (LSE:BLND) is one such stock. It boasts an impressive dividend yield of 5.8%. That’s almost twice as much as Footsie, so let’s see how much cheaper it will be to build a second income from its shares.
British soil
The British Land share price is currently 400.2p. If we include the recently announced final dividend of 10.8p, which is due to be paid in July, and the interim dividend of 12.32p paid in January 2026, the total annual payout is 23.12p per share.
Therefore, for investors to earn £1,000 a month in their Stocks and Shares ISA, they would need to buy 51,904 shares in the company.
This would cost £207,719.81. That’s still a huge amount, but £185,722.81 cheaper than investing in the FTSE 100 to earn the same amount of income.
Dividends are not necessarily guaranteed. However, British Land’s share price-to-earnings ratio currently stands at 8.7, and combined with its high dividend yield, there is no doubt that this represents a tempting opportunity for investors to explore further.
However, sometimes this may be because the company’s stock is a value trap because its fundamentals may be faint. So let’s look at the basics of the British Land to see if this is indeed the case.
There is a risk
As a company that owns and rents both office space and city logistics, I have concerns about the development of artificial intelligence.
If AI causes job losses, there could be less demand for office space, which could hurt a company’s rental income and property valuations.
It doesn’t seem to be having that effect at the moment. The rise of artificial intelligence appears to be increasing demand as AI companies look to lease office space in London. As a result, office occupancy in central London has reached its highest level in 20 years.
It also owns 5% of the central London office market, so it can continue to benefit.
However, investors still should not ignore the threat of artificial intelligence as most of the effects of this technology are not yet perceptible.
That said, there’s still a lot I like about British Land Basics.
There are also many positives
The company’s recent results highlight its impressive performance. In the year to March 2026, operating profit increased by 5% to £294 million. It also saw its property portfolio grow by 2.3%, now valued at £10.1 billion after capital expenditure.
Overall occupancy is an impressive 96.9%, while comparable net rent growth was 6%. These are pretty good indicators of good operating performance.
Moreover, the company has released great prospects. It expects EPS to be 30.5p in 2027, up from the 28.9p achieved in 2026, and expects it to grow 3-6% annually in the following years.
To summarize, these are some of the key reasons why I think investors may want to take a closer look at British Land shares.
Is it worth investing £5,000 in British Land Plc now?
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Muhammad Cheema does not hold any position in the companies mentioned.
