Looking at high-yielding shares for a Stocks and Shares ISA is a great way to make an additional income over time.
The FTSE 100 offers a yield of 3.1%. This is pretty decent, but to make an extra £1,000 a month from it, investors would need £393,442.62 in the index.
That’s where picking stocks with higher yields comes in, as investors could aim to make the same passive income with a lower investment.
British Land (LSE:BLND) is one such stock. It boasts an impressive dividend yield of 5.8%. This is almost double the Footsie’s, so let’s see how much cheaper it is to build a second income from its shares.
British Land
The British Land share price is currently 400.2p. If we take the final dividend, recently announced at 10.8p and due to be paid in July, and the interim dividend of 12.32p paid in January 2026, the combined annual payout is 23.12p per share.
Therefore, for investors to make £1,000 a month in their Stocks and Shares ISA, they would need to buy 51,904 of the company’s shares.
That would cost £207,719.81. This is still a massive amount, but it’s £185,722.81 cheaper than an investment in the FTSE 100 to get the same amount of income.
Dividends aren’t necessarily guaranteed. However, British Land shares currently have a price-to-earnings ratio of 8.7 and combined with a high dividend yield, there’s no doubt that this represents an enticing opportunity for investors to explore further.
Sometimes, though, this may be because the company’s shares are a value trap, as its fundamentals could be weak. Let’s therefore examine the fundamentals of British Land to see if this is the case.
There are risks
As a firm that owns and leases both office space and urban logistics, there are concerns that stem from the rise of AI.
If AI results in job losses, there may be less demand for office space, and it could hurt the company’s rental income and property valuations.
Right now, it doesn’t seem to be having that effect. In fact, the rise of AI looks like it’s driving up demand as AI firms are looking to lease office space in London. As a result, the firm has seen its Central London occupancy reach the highest level in 20 years.
It also owns 5% of the Central London office market, so it could continue to benefit.
However, investors still shouldn’t ignore the AI threat, as we’re yet to see most of the effects from the technology.
That said, there’s still plenty I like about British Land’s fundamentals.
There are also many positives
The company’s recent results highlight impressive performance. In the year to March 2026, it saw its operating profit up by 5% to £294m. It also saw its property portfolio increase by 2.3%, now valued at £10.1bn, after accounting for capital expenditure.
Overall occupancy is an impressive 96.9%, while like-for-like net rental growth was 6%. These are pretty good indicators of strong operational performance.
Moreover, the firm issued a great outlook. It expects EPS of 30.5p in 2027, which is up from the 28.9p achieved in 2026. And it expects this to grow 3%-6% per annum in subsequent years.
Ultimately, these are some key reasons why I think investors may want to consider looking into British Land shares further.
Should you invest £5,000 in British Land Plc right now?
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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if British Land Plc made the list?
Muhammad Cheema does not hold any positions in the companies mentioned.
