Targeting FTSE 100 stocks can be a brilliant strategy for those aiming for long-term passive income. Dividends are never, ever guaranteed. Yet many blue-chip UK shares have the kind of sturdy business models and balance sheets that support large and growing shareholder payouts.

Many Footsie shares have raised dividends strongly since the global pandemic of 2020. Some have exceptional records of payout growth dating back 10 years or more.

And then there’s those superstars that have grown dividends consistently for decades. BAE Systems (LSE:BA.) is one such passive income share I want to talk about today.

Dividends here have risen for 22 years on the spin. And if City analysts are correct, the company’s on course to reach a quarter of a century of uninterrupted dividend growth in 2028.

The question is, does this make BAE the ultimate FTSE 100 income stock?

Talking yields

Perhaps. Perhaps not. It depends on whether you happen to prize dividend growth over near-term dividend yields.

Let me explain. BAE Systems’ share price has soared 250% over the past three years, driven by surging defence spending by major customers including the US Department of Defence and the British government.

That’s great news for existing shareholders who’ve enjoyed stunning capital gains alongside a growing dividend. But what about if you’re thinking of opening a position in the company today? Maybe BAE shares aren’t quite as attractive.

For 2026, the dividend yield is 1.9%, below the broader FTSE 100 average of 3.1%. It’s also below the company’s long-term average yield of 2.9%.

And here’s the thing: while dividends are tipped to rise in 2027 and 2028, at the current share price, yields remain below that long-term reading.

Dividend strength

So why do investors continue buying BAE Systems’ shares for dividends then? Well as its long record of payout growth shows, BAE Systems one of the most secure passive income shares out there.

This is underpinned by the firm’s multi-year government defence contracts that generate formidable cash flows. And right now, a record £84bn order backlog underpins projections of further payout growth over the medium term, even in the event of a cyclical downturn.

Not that I’m expecting the defence industry to experience any sudden slump. NATO countries have pledged to steadily raise weapons spending, hitting 5% of their GDPs by 2035 and unlocking billions of pounds of revenues opportunities for sector giants like BAE.

11.3% dividend yield!

And here’s the thing. Though near-term dividend yields aren’t much to shout about, this stunning payout growth means that a small yield today can blossom into a jaw-dropping cash yield later on.

Over five years, BAE’s raised annual dividends on its shares by an average of 9.3%. If this continues, someone who invests today will enjoy a 3% effective yield on their investment five years from now, and a very healthy 4.6% within 10 years.

And in 20 years, that yield would transform into a staggering 11.3%.

A great income stock?

This illustrates the wisdom of buying quality FTSE 100 dividend shares today, even if they currently have modest yields, and holding them for the long haul.

BAE faces challenges such as rising costs and huge competition. But given its terrific track record and growing end markets, I think it’s a top passive income share to consider today.

Should you invest £5,000 in BAE Systems 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 BAE Systems made the list?

Royston Wild does not hold any positions in the companies mentioned.