Traders have loads of methods to goal for a big second earnings. However I consider one of the simplest ways to complement my earnings with additional money is by shopping for FTSE 100 shares.

Broadly talking, Footsie-quoted shares are inclined to:

• Be mature, market-leading companies, whose regular money flows allow common and dependable dividends.

• Have operations in a number of areas, which in flip spreads threat throughout markets and supplies extra constant revenues and money flows.

• Possess strong steadiness sheets, which may also help them pay a good and secure dividend even throughout financial downturns.

• Concentrate on providing giant and rising dividends to draw traders.

A £4,440 passive earnings

As I say, that is the broad rule on the subject of investing within the FTSE 100. However dividend cuts can nonetheless occur that may unexpectedly whack traders’ passive earnings and trigger share costs to hunch.

This has been the case with each Nationwide Grid and Vodafone in 2024.

However right this moment there are nonetheless many rock-solid earnings shares to select from. Authorized & Common (LSE:LGEN) is one among my favourites from the index.

If Metropolis forecasts are correct, the corporate would supply me with a £4,440 passive earnings between 2024 and 2026. That’s based mostly on a £15,000 lump sum funding I made firstly of the 12 months.

Dividend hero

For my part, Authorized & Common has the most effective dividend information on the Footsie.

Dividends have risen yearly (excluding 2020) for the reason that Nice Monetary Disaster. And dividend yields have smashed these of just about each different share on the index in that point.

That is thanks partly to the agency’s extremely resilient enterprise mannequin. Its presence in a number of geographies and sub-sectors (like insurance coverage, asset administration, and pensions) supplies wholesome and dependable money flows.

Such spectacular dividend progress additionally displays the corporate’s enduring capital energy. At this time, its Solvency II capital ratio sits at 223% as of June, roughly unchanged from a 12 months earlier.

This provides Authorized & Common room to take a position for income progress, whereas additionally persevering with to reward shareholders with giant and rising dividends.

10%+ dividend yield

Because the desk reveals, Metropolis analysts count on dividends to maintain rising by means of the following few years a minimum of. I’m assured too, that — regardless of the risk posed by intense competitors in its markets — it’ll continue to grow money rewards over the long run.

This shall be underpinned by rising demand for wealth and retirement merchandise as the worldwide inhabitants ages.

I truly invested £15,000 in Authorized & Common shares firstly of 2024. So I’m anticipating these £4,440 price of dividends to come back my manner over the following few years.

Nonetheless, I’ve additionally purchased a number of different FTSE 100 shares with robust information of dividend progress and/or market-beating yields. These embrace Aviva, Ashtead Group, Coca-Cola HBC, and Rio Tinto.

I’m assured this diversified strategy will assist me make an index-beating passive earnings for years to come back.