An attractive second income from an ISA is something that most investors aspire to over the long term. Even if they’re buying growth stocks today, the aim will eventually be to receive some form of income to make retirement more comfortable.
However, some people who get the ball rolling at a young enough age can even retire early, living off the dividends flowing from their portfolio.
Admittedly, £75 a day probably isn’t enough to do that – it equates to £27,375 a year. But taken tax-free from an ISA and with the State Pension on top, it would likely make a big difference to many people’s living standards in the UK, even after factoring in future inflation.
So, how large would the ISA need to be to generate this sum?
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Plenty of high yields in the UK
Now, shares don’t pay daily income, so when I say £75 a day I’m talking about the annual equivalent. It would, of course, be possible to drip-feed regular sums from the ISA into a current account through automated transfers.
How large the ISA would need to be depends on the dividend yields of the stocks held inside it. To give an example, a portfolio yielding 5% annually would require £547,500 to generate £27,375 per year. A higher 7% yield reduces the total needed to approximately £391,000.
Let’s assume then that someone targets dividend stocks in this yield range. There are plenty of these on the London Stock Exchange, even after the FTSE 100 and FTSE 250 have performed very strongly recently.
One that stands out to me for its quality, cheapness, and attractive income growth prospects is TBC Bank (LSE:TBCG). This FTSE 250-listed group operates in Georgia and Uzbekistan.
As we can see below, the share price has performed strongly for years. It’s up more than 300%, including an 8% boost in the past week after the bank posted robust annual earnings growth.
In 2025, net profit jumped 24.2% to the Georgian currency equivalent of £393.3m. Monthly active customers edged up 3% over the year to 7.9m, with stronger growth in digital users.
Naturally, there are potential political and regulatory risks in both countries, especially Georgia. And an economic downturn in either would present challenges to growth.
However, looking ahead, TBC’s CEO Vakhtang Butskhrikidze struck a bullish tone: “I firmly believe that the group is in excellent shape to continue delivering long-term value for our shareholders. Our market leading Georgian franchise is gaining good traction…[and] we also see great potential in Uzbekistan, where we will continue to launch new product verticals and scale up.
Despite its rapid appreciation in value, the stock trades on an ultra-low price-to-earnings ratio of just 5.9, while offering a forecast 5.85% dividend yield.
I think TBC is an excellent dividend stock to consider for an income portfolio.
Playing the long game
Finally, to state the obvious, most people don’t have between £391k and £547k sitting in an ISA. And that’s perfectly fine, because such wealth can be accumulated over time through patience and consistency.
For instance, investing £600 a month while achieving an annualised 10% return, it would take less than 19 years to reach £391k and just under 22 to get to £550k. Therefore, it’s perfectly achievable for most people.
The key is picking the right stocks at the right time.
