Unfortunately, we don’t live in a world where rent is free… but maybe, by buying dividend stocks in an ISA, investors could make enough passive income to cover their rent?

I think it’s certainly possible.

In fact, looking at the FTSE 100, there are plenty of shares with very high dividend yields. One such is Aviva (LSE:AV.) with its 6.3% yield. This is more than double the Footsie’s 3% average.

Let’s see how investors might consider using its shares to try to pay their rent.

The road to passive income

Aviva shares currently trade for 620.8p, and over the last year, they’ve paid 39.3p in dividends. Therefore, investors would need to buy 42,168 to target £1,381 of monthly passive income.

This would be enough to pay the average rent in the UK. But it would cost £261,778.94 in total. It would be a risky strategy to put all that money into just one stock.

For example, as an insurance firm, Aviva is exposed to the insurance cycle. And it seems as though we are in a phase where there’s downward pressure on insurance premiums, which can impact the firm’s margins.

Investors may therefore want to think about diversifying their portfolio, so they can mitigate certain risks in individual companies, like Aviva’s. Many other UK stocks have high yields that could be considered.

Such shares include Legal & General, which has a yield of 8.1%. Looking outside the financial services industry, there are also the likes of British American Tobacco with a dividend yield of 5.2%.

Moreover, even with a diversified portfolio, I doubt many have £262k in spare cash. But all is not lost, as I believe investors can achieve this over time.

How many years?

Let’s go back to using Aviva shares as an example, and assume that on average they appreciate by 3% a year, and so does their yield.

If an investor started with £26,200, which is 10% of the target, and invested a further £262 a month, they would have the amount needed within 18 years.

Now, there’s no guarantee that dividends will be paid. It’s also highly unlikely that the average UK rent will remain at £1,381 per month, due to inflation. But it’s still a useful analysis. Furthermore, there are plenty of reasons why Aviva might be appealing right now.

Causes for optimism

So far in 2026, the insurance firm’s shares have declined by 10.3%. That might not sound like good news, but it also means the cost to obtain the firm’s future dividends is now 10.3% cheaper.

The company has also been performing well recently. In its first-quarter trading update, it saw general insurance premiums rise by 19% year on year to £3.4bn. This represents strong growth.

With a forward price-to-earnings ratio of 13.5, the company’s shares aren’t exactly expensive either. With all of this in mind, it might be a great entry point for investors to consider buying some Aviva shares.

Should you invest £5,000 in Aviva Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aviva Plc made the list?

Muhammad Cheema does not hold any positions in the companies mentioned.