3 second income shares to mull before the next big FTSE 100 rally

High income, cyclical risk

Land Securities is the highest-yield name here, at 6.86% – well above the FTSE average. The bull case rests on its prime London offices and retail assets. Commercial property’s bouncing back and that rental income would support payouts while capital recovers. Higher borrowing costs have hit the stock lately, so this recovery’s critical.

Still, the risks are ever present. Commercial property’s sensitive to interest rates, financing costs, office demand and valuation movements. Recovery’s never guaranteed, and property can be particularly sensitive to even minor economic hiccups.

In my mind, this is suited to an investor looking to boost their average yield in a diversified portfolio, assuming they’re prepared for some property-cycle risk. The key’s watching rates – if they drop, this could be a real winner.

The classic high-yielder

Imperial Brands is the more conventional income option. Its 6.3% yield’s supported by strong cash generation and a progressive dividend policy. The company recently increased its interim dividend by 4% to 83.36p, and has paid dividends for 30 years. However, its payout ratio’s relatively high, so dividend growth is likely to be slow.

Imperial’s case isn’t only about tobacco. Pricing power supports revenue, while next-generation products are growing. In the first half of 2026, next-generation product net revenue rose 7.5%, with market share gains across vapour, modern oral nicotine and heated tobacco.

The risks are familiar: falling cigarette volumes, regulation, litigation and the switch to smoke-free products. Imperial’s also announced a £1.5bn share buyback for fiscal 2027.

For income investors, Imperial looks attractive, but position sizing matters.

Lower yield, bigger total return

Shell offers a lower current yield of roughly 3.1%, but pairs the dividend with substantial buybacks. That makes it the most diversified option here.

The company targets annual dividend growth of around 4% and total shareholder distributions of 40%-50% of cash flow from operations. In Q2, it maintained its quarterly dividend at 39c per share and announced a further $3bn share buyback.

Of course, the key risks are oil and gas prices, refining margins, energy transition policy and capital spending. Commodity prices are volatile enough as it is, so with everything going on right now, it’s particularly sensitive.

Still, its dividend growth policy and buyback-driven total returns are what make it ideal for an income portfolio with a long-term outlook.

Three income ideas, three roles

Rather than interchangeable, these shares are complementary. Land Securities is the high-yielder, Imperial provides classic dividend reliability, and Shell’s the long-term growth compounder.

For any investor targeting a second income on the FTSE 100, I think all three are worth considering.

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Mark Hartley does not hold any positions in the companies mentioned.