The FTSE 100 has long been seen as a defensive income play, and these are just the attributes investors can seek in times of uncertainty.
We’ve delved into London’s leading index and picked out two dividend shares that stand out for their income-bearing characteristics, which should help longer-term investors ride out current uncertainties both at home and abroad.
Legal & General (LON:LGEN)
With an 8.4% yield, Legal & General is an obvious choice for investors seeking an income during times of volatility. Shares have held up well during the Middle East war, with the market seeing them as a ‘safer’ bet.
L&G’s quality is underpinned by a strong set of full-year 2025 results, with core operating EPS up 9% to 20.93p and core operating profit rising 6% to £1,623m.
That EPS growth sits at the upper end of their 6-9% CAGR target through 2027, so they’re tracking well against guidance.
As well as paying a healthy dividend, L&G is launching a £1.2bn share buyback, the largest in its history, funded by £1bn from the US protection business sale to Meiji Yasuda and £200m from its distribution policy.
Combined with a 2% dividend increase to 21.79p per share, planned returns to shareholders hit £2.4bn over the next year, with more than £5bn expected over 2025-27.
Those who favour cash returns through dividends may have preferred a larger dividend increase, but the yield is already substantial.
Management expects 2026 EPS growth at the top end of its target range.
Land Securities (LON:LAND)
To consider Land Securities, you have to hold some semblance of positivity about the UK economy, which we recognise is easier said than done in the current environment.
But Land Securities’ 7% yield and share price trading near multi-year lows suggest it has already priced in the quagmire that is the UK economy, and the stock may react well to even the slightest improvement in sentiment.
After a period of selling down weaker areas of its portfolio, Landsec is refocusing on high-quality properties across the UK to add to its portfolio, which includes assets such as the Brighton Marina, 6-17 Tottenham Court Road, 62 Buckingham Gate, and a plethora of retail parks and mixed-use properties across the UK.
Land Securities has recently announced a pivot towards residential property, making the Real Estate Investment Trust one of the most diverse plays in the UK property market, with a portfolio spanning retail, office, and residential.
Underscoring operational progress, Landsec posted a solid half-year to September 2025, with EPRA EPS up 3.2% to 25.8p, driven by 5.2% like-for-like net rental income growth and a further 6% cut in overhead costs. The interim dividend rose 2.2% to 19.0p.
Recent guidance was encouraging. Full-year like-for-like income growth is now expected at 4-5%, up from the initial 3-4%, and EPS growth is guided to the top end of the 2-4% range.
More significantly, management has raised its medium-term EPS target from around 60p to 62p by FY30, implying a 4-4.5% CAGR from FY25’s 50.3p base.
That’s being driven by stronger retail income growth, overhead savings targeting the low £60m’s by FY27, and lower development capital commitments.