If you’re tired of the AI-fueled rollercoaster that is US stocks, it might be time to consider FTSE shares to obtain dividend income. The historical focus on earnings means that UK-listed shares tend to pay higher dividends than their overseas cousins.

This makes them ideal for investors who prefer to live off their investments rather than just watch them grow.

Let’s be candid, an extra £100 a week would certainly lend a hand alleviate any worries about spending at the weekend. So how can an investor provide this type of income?

Working out the numbers

To achieve our target passive income of £100 per week from dividend-paying FTSE shares, we need to calculate how much will be paid out annually. At 52 weeks a year you would need to bring in £5,200 a year.

Here’s what it looks like at different performance levels:

A dedicated investor putting in £300 a month and reinvesting the dividends could save this amount in around 10-11 years. Everything will be gravy from this point on, assuming the average yield is maintained.

But never choose the highest yielding produce without taking a closer look. Dividends can be cut at any time! For example, Port Energy recently adopted a up-to-date payout policy, forecasting a 19% decline in total dividends for 2025 compared to the previous year.

Group of pages it similarly cut its annual dividend by 50% in March, citing balance sheet protection in the face of falling profits.

So how to find reliable dividend payers?

How to achieve high profits

Let’s take a look New River REIT (LSE: NRR) as an example. Real estate investment trusts (REITs) provide income because they are regulated and are required to pay out a enormous portion of their profits to shareholders.

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.

It currently offers a yield of around 8.58%, which is extremely high but is well covered by profits and cash. The company has a 16-year payment history and sufficient profitability, with a net margin of 24.2%.

Not that it’s without risk. Real estate markets can be cyclical, occupancy rates can decline, and changes in interest rates can impact borrowing costs. The dividend has been highly volatile over the last decade, with a recent payout ratio of close to 96%, leaving little room for error.

Despite this, the balance sheet looks well: according to the latest accounts, assets are around £1 billion and debt is £440 million. Yes, the share price has suffered greatly during the pandemic. It’s still down about 10% over the past five years. However, it has recently gained recognition in the market, growing by 6.5% in the last 12 months.

Is £100 a week realistic?

When you take the time to assess the long-term profitability of FTSE dividend shares, you’ll find that £100 a week is a realistic target.

A reliable dividend payer like NewRiver REIT is just one example of a stock worth considering. There are many others, from defensive consumer names to healthcare giants.

However, sustainability, not just yields, is key. Therefore, it is vital to diversify between sectors that offer a decent balance of reliability and income. Fortunately, there is no shortage of them on the British market.

What income stocks do we like better right now than NewRiver REIT Plc?

One of our Share Advisor analysts has just published a up-to-date stock report that we believe is a must-read for any investor looking to generate potential income.

And the best thing is that you can check it yourself right now completely free of charge!

No jargon. There is no tough sell. Just take a close look at the revenue share we think is worth your time.

Mark Hartley holds no position in the companies mentioned.