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According to various sources, British citizens are left with an average of £300 a month after paying rent and expenses. If this money was saved, at the end of the year the investment in UK shares would be as much as £3,600.
That’s a decent starting point. However, he can go even further if he invests in a portfolio of high-yielding dividend stocks.
So what would a portfolio of this type of stock look like?
10 UK dividend stocks with an average yield of 7%.
With the right stock selection, an investor can realistically achieve an average rate of return of 7%. However, not all dividend-paying companies are reliable, so selecting only the 10 companies that generate the highest profits is risky.
Take the following list for example:
| Business | Give (%) | Sector |
|---|---|---|
| ITV (LSE: ITV) | 7.2% | Media/broadcasting |
| Standard life | 8% | Life insurance |
| M&G | 7.8% | Asset management |
| HSBC | 7.% | Banking |
| British-American tobacco | 5.8% | Tobacco |
| Port Energy | 7.% | Energy |
| MONA Group | 7.1% | Financial services |
| Taylor Wimpey | 7.5% | Building a house |
| Barratt Redrow | 6.9% | Building a house |
| BP | 5.7% | Energy |
Splitting the £3,600 investment equally between these shares would give a dividend income of £252 per year. It won’t cover your mortgage, but it’s a useful extra bill that could grow if you reinvest the cash.
After 10 years, your annual income could double to over £500 (if the average rate of return is maintained).
Is ITV a good addition to this list?
ITV is in the spotlight at the moment with its expanded Men’s World Cup in 2026. ITV and the BBC share UK broadcast rights, with ITV showing 51 matches live, including several key matches against England.
This is a huge showcase for advertisers. The company expects total advertising revenue (TAR) to grow by approximately 10% in the second quarter of 2026, with a particularly powerful July driven by demand for the World Cup.
In the numbers, ITV looks intriguing for income investors. The stock is trading at a forward price-to-earnings (P/E) of around 9.5, which is cheaper than the broader market. However, the analyst price target is only slightly above today’s price at around 82.6p, so the main attraction here is income rather than capital gains.
The latest dividend data shows a forward yield of 7.2% based on price forecasts. However, growth has remained flat over the last three years and the annual dividend for the full year remains constant at 5p per share.
Some of this may be due to the fierce competition in the broadcasting world. ITV is fighting tough for attention in a world where many younger viewers are now opening up Netflix or YouTube before they even think about live TV.
Putting it all together
For me, a target return of 7% is realistic, but only if you’re picky. The FTSE100 as the yield rate approaches 3-3.5%, most of the “safer” huge cap stocks are in the 3-5% range, with only a subset reaching 6% or higher.
This is why I would mix solid blue chips with some higher yielding names to push the average higher while keeping position sizes modest.
ITV, with its trusted brand, exposure to football and above-index profitability, is certainly worth considering as part of this combination. Despite competition from streaming services, live sports remains a key revenue driver for major broadcasters.
Should you invest £5,000 in ITV now?
If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.
Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if ITV is on the list?
Mark Hartley owns shares in ITV, Standard Life, HSBC, British American Tobacco, MONY Group, Taylor Wimpey and BP.
