Image source: Getty Images
For those looking for passive income from a Stocks and Shares ISA, it’s hard to look past dividend shares. The regular nature of many dividend payments makes it simple for the cash to keep rolling in without having to lift a finger.
Here are three dividend shares I think investors need to be aware of in 2026.
Plenty of signs
The London Stock Exchange Group (LSE: LSEG) is commonly known for its operations in managing the UK’s stock exchange. That has been a struggle recently as London is suffering from a dearth of IPOs. But there’s a lot more to the company than first appears.
The robust nature of this business means this isn’t the highest yield on the market – currently 1.65%. Remember, the better a firm’s growth prospects, the lower its yield tends to be. But this is a growing business and that growth is fuelling its dividend.
The dividend payments have been increasing every year for the last 15. The growth rate of the dividend over the last 10 years is an astonishing 19% too. I can count the number of FTSE 100 stocks higher than that on the fingers on one hand.
The second stock – British broadcaster and FTSE 250 member ITV (LSE: ITV) – is more of ‘jam today’ play. The firm currently pays a significantly above-average dividend yield of 6.07%. However this is a dividend that has not increased for the last couple of years.
The company is navigating the shift from traditional terrestrial television into the wide world of digital media. While this might be seen as a rocky time for the old ‘channel three’, there are plenty of signs to be optimistic.
Its own service ITVx became profitable two years ahead of schedule. The latest figures show advertising revenue and total streaming hours are both growing too.
ITV also produces a lot of shows for the big global streamers like Netflix, Apple TV, and Disney+. Shows like Love Island and Line of Duty have been monstrous successes, which suggests there could be plenty of life in the old dog yet.
Stickiness
The third and final stock is another FTSE 250 member that might just be the best of both worlds. Safestore Holdings (LSE: SAFE) offers a 3.73% dividend yield that has been growing every year since 2008.
The current five-year growth rate of the dividend is 10.54% and the 10-year growth rate 12.27%. If those figures continue then investors will be looking at a rising passive income for years to come.
Safestore is a real estate investment trust that draws in stable revenues from sticky customers. Around 70%-80% of sales is from existing customers who need storage solutions. This could be one reason this will be a reliable dividend payer for years to come.
While higher interest rates could weigh heavily on a large-ish debt burden, the possibility of expansion into Europe could make this a very attractive option to consider, as far as I’m concerned.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
