Generating a passive income has been relatively challenging over recent years. Low interest rates have meant that Premium Bonds may have appeared to be more attractive than cash. However, the low chances of winning £1m mean that the average annual return from Premium Bonds is around 1.4%.
Therefore, buying FTSE 100 dividend shares could be a better idea. The index currently has a relatively high yield, while many of its members could offer inflation-beating dividend growth over the coming years.
With that in mind, here are two large-cap dividend shares that could be worth buying today to boost your passive income.
Landsec
While the prospects for the UK economy may appear to be relatively uncertain at the present time, the performance of commercial property company Landsec (LSE: LAND) has been relatively impressive. Its most recent annual results showed a high occupancy rate, as well as progress towards becoming increasingly London-focused.
Since the capital has a track record of delivering relatively resilient performance over the long run, the company’s pivot towards London could prove to be a sound move. Likewise, the expansion of its Myo flexible offer and the investment it is making in experience-led destinations could provide a tailwind over the coming years.
Landsec’s dividend yield of 5.1% suggests that the REIT offers a favourable income investing outlook, as well as a margin of safety. As with many of its sector peers, an uncertain near-term political outlook may impact negatively on its shares in the short run. But over the long run, it could deliver an impressive rate of growth alongside a rising dividend that provides a relatively high passive income for its investors.
AstraZeneca
Another FTSE 100 stock that could offer high total returns in the long run is AstraZeneca (LSE: AZN). It has proved to be a popular stock among investors during the course of 2019, with its share price outperforming the FTSE 100 by 13% since the start of the year.
Further outperformance could be ahead, since the company’s investment strategy is expected to produce an increase in net profit of 18% in the next financial year. With demand for a variety of healthcare products and services expected to rise as the world’s population grows in size and its average age rises, AstraZeneca could experience favourable operating conditions.
The company’s dividend yield of 3% may not be appealing on a relative basis in the short run. However, its dividend has not been raised on a per share basis for a number of years due to challenging financial circumstances caused by a loss of patents on blockbuster drugs.
However, with earnings growth on the horizon, AstraZeneca could become an increasingly appealing income share that provides a robust and fast-growing passive income for its investors. As such, now could be the right time to buy a slice of the business.
