There’s no better way to target long and lasting dividends than with FTSE 100 and FTSE 250 shares. That’s my view at least. UK blue-chip companies are famed for their strong balance sheets and robust positions in mature markets. It’s a recipe that’s helped me enjoy a healthy passive income down the years.
I own many dividend-paying stocks. That way, my portfolio can still deliver a strong second income stream even if one or two shares experience problems. But here I want to talk about two golden Footsie stocks in particular — Coca-Cola HBC (LSE:CCH) and Aviva (LSE:AV.) — and explain why they merit serious consideration.
The real thing
Coca-Cola has never been one of the FTSE 100’s biggest dividend payers. For this year, its dividend yield sits way back at 2.2%. That falls below the broader index’s 3%-4% long-term average.
But what the Coke bottler does have is a stunning record of dividend growth. Payouts have risen in each of the 13 last years. In other words, they’ve grown every year that the company’s been listed on London’s stock market.
The reason? Like many food and drink producers, it enjoys huge — and critically for dividends, extremely reliable — revenues and cash flows. But the ace up Coca-Cola’s sleeve is its exceptional brand strength, allowing it to steadily hike prices without hitting volumes. This is a powerful tool in helping it grow earnings and therefore dividends.
Coca-Cola HBC isn’t risk-free, though. Consumer tastes can change quickly, and the business operates in a famously competitive industry. It’s not out of the question that dividends come under pressure if sales drop.
Yet I’m optimistic the Footsie firm will remain one of the index’s greatest dividend growers. Coke alone has been quenching drinkers’ thirsts for more than 140 years, and remains the world’s number one drink brand by some distance. Coca-Cola HBC has other popular labels like Sprite and Fanta it can rely on to drive can and bottle volumes too.
A 6.3% dividend opportunity?
Aviva is another awesome cash generator from the FTSE 100. It’s a quality that’s underpinned healthy dividend growth for six straight years.
But that’s not all, as dividend yields have consistently beaten the broader blue-chip average. For 2026, its yield is a chunky 6.3%. Financial industry regulations mean Aviva has to keep significant capital on its balance sheet that supports shareholder returns. Today its Solvency II capital ratio is a substantial 180%.
The insurer collects a steady flow of policy premiums that deliver reliable cash flows. It also provides retirement and wealth products which generate steady fee-based income. But beware: these on their own don’t make dividends ‘bulletproof’. Aviva’s were actually reduced in the mid-2010’s when the firm needed to beef up the balance sheet.
If regulatory requirements change again, or Aviva undergoes further significant restructuring, fresh dividend cuts are possible . But it’s unlikely, in my view, given the huge work the firm’s undertaken in recent years. And the FTSE 100 share is stepping up investment in capital-light operations too, in order to reinforce cash flows and boost its dividend credentials.
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Royston Wild owns shares in [company names].
