I could buy 2,941 shares of this FTSE 100 stock for £1,000 a year in income

When I look at the London stock market today, what I mostly see is a gold mine of income.

Footsie is full of companies that make wallets. And, for some reason, the market tends to have them at much lower prices than similar stocks listed in the US.

Some large high-yield stocks have risen in price over the past year. And that means they aren't huge deals like they might have been last year.

But what if the stock is so cheap today, than it was stupidly cheap last year? In my books, that's still a good reason to consider buying.

A longtime favorite

Today I'm taking a look at one of my long-time top picks. It is the UK's largest insurance company, Aviva (LSE: AV.).

And just look at the chart below to see how the stock has returned over the past 12 months.

Even after that hike, the forecast dividend yield is still 6.8%.

Even if the share price doesn't gain another penny, that gain alone should be enough to come close to the UK stock market's long-term annual return.

Now, that presents the first risk we have to face with an investment like this. Unlike Cash ISA interest, dividends are not guaranteed.

If something bad happens, that 6.8% expectation could evaporate. Remember the financial crash of 2008, then the pandemic crash of 2020? We will not forget them in a hurry.

Is it clear yet?

Although the financial sector has undergone major changes and restrictions this year, the UK economy is not out of the woods. Interest rates remain high, and inflation eased slightly in July to 2.2%.

Aviva is in a dynamic, cyclical business, too. So I would definitely expect ups and downs over the years, much more than the overall market.

But I've been following the insurance industry for decades, and buying and holding stocks. In my mind, it's probably one of the best businesses you can get into for long-term income. But investors need to expect short-term dry spells at times.

For anyone with the same opinion as me, I think Aviva is worth considering.

How much?

paid a dividend of 6.8 %. And I want to pocket £1,000 a year. For that, I would need a pot of £14,700. At the share price as I write, that's 2,941 Aviva shares.

I don't have that many yet, but I'm getting there. And if I keep reinvesting the profits I get from that oil harvest every year into new stocks, I don't think I'll be far.

Now, £1,000 a year is not much. But it's only one stock in my income portfolio. To address the potential problems of the industry of the future, I make diversity a priority.

And I won't need many different stocks earning £1,000 a year to add a tidy sum to my pension plans.