With the brand new tax 12 months having simply begun, Shares and Shares ISA buyers have a contemporary £20,000 annual contribution restrict to utilize. For these trying to make an enormous passive earnings, I feel the next two prime dividend shares are value critical consideration:

If dealer forecasts are right, somebody who spreads a £20k lump sum equally throughout these UK shares would make a £1,740 passive earnings over the course of 2025. I’m optimistic every could have what it takes to ship a rising dividend over time too.

Whereas taking into account that dividends are by no means assured, right here’s why I feel these passive earnings shares benefit critical consideration.

A trusted dividend payer

The Henderson Excessive Revenue Belief has grown the annual dividend for 12 consecutive years on the spin. Previous efficiency isn’t all the time a dependable information to the longer term. Nevertheless, this means it may very well be a very good funding to think about in these unsure instances.

The belief’s resilience is thanks partially to the way in which it’s structured. Round 80% of it’s invested in mid- and large-cap equities, with the rest locked into fastened earnings securities (ie bonds).

This makes it a reliable supply of dividend earnings, whereas additionally offering scope to ship capital development. Main holdings right here embrace FTSE 100 dividend royalty British American Tobacco, HSBC, Rio Tinto and Unilever.

Greater than 88% of the fund is tied up in London-listed shares, which might depart it susceptible if investor urge for food for UK belongings darkens. However on the entire, I feel it’s a rock-solid dividend share to think about.

Greatest FTSE 100 yield

Income at monetary providers enterprise M&G may very well be vulneable if financial circumstances cool sharply. Whereas this might have substantial ramifications for the share price, I’d nonetheless anticipate the FTSE 100 firm to maintain on rising annual dividends (bar some catastrophic occasion).

That is thanks largely to the asset supervisor’s cash-stacked steadiness sheet. Its Solvency II capital ratio was greater than double the regulatory requirement on the finish of 2024, at 223%.

I imagine this could give M&G the means and confidence to pay a big and rising dividend even when revenue disappoint. A powerful steadiness sheet’s particularly important proper now. The expected dividend for 2025 is roofed simply 1.2 instances by anticipated earnings this 12 months.

The agency’s strong monetary foundations have allowed it to boost the dividend every year because it break up from Prudential in 2019. And it stays dedicated to widescale cost-cutting to maintain its steadiness sheet in tip-top form (it hiked its value discount goal once more on the finish of final 12 months, to £230m by the tip of this 12 months).

Current share price weak spot means M&G shares now have the best yield on the FTSE 100. I feel it may very well be the most effective blue-chip dividend shares to think about at this time.