All it takes is £10,175 from these three dividend stocks to target £1,000 in annual income.

There are some fixed income UK equities that are offering great yields these days. In fact, if I were to stick to just over 10 of these three picks, I could set aside £1k a year in roaming income.

Legal & General

The first stock I would go for is Legal & General (LSE: LGEN). Its jaw-dropping forward yield of 9.4% makes it one of the FTSE 100very high.

Perhaps unsurprisingly then, Legal & General was a favorite stock among Fidelity ISA investors in August as they shunned rich value technology stocks. It was a very popular stock among SIPP investors as well.

With its cheap valuation and high yield, it's easy to see why. Also, the insurer's balance sheet is in excellent shape and is committed to continuing to increase profits in the future.

A recession is a risk to a company, as is continued inflation and high interest rates. However, over time, I see a growing number of people benefiting from the Law & General, given their knowledge of pensions.

IM&G

The following is a savings and investment provider IM&G (LSE: MNG). It carries a high yield of 9.6% for this year.

The executor was fired Prudential in 2019 when the insurance goes all in Asia. The share price has gone nowhere during this period while the dividend has risen – a recipe for huge yields.

However, M&G was doing well. In 2023, adjusted operating profit before tax increased by 27.5% to £797m. In the first half of 2024, it fell by 4% to £375m, but this was above analysts' consensus forecast of £355m.

Another risk to keep in mind is the growth of passive investments, which can hamper the fund manager's long-term growth. Also, significant market volatility can affect revenue, operations, and customer base.

Rest assured though, the fund's long-term performance has been excellent. As of June, 62% of its mutual funds ranked in the top two quartiles over three years and 66% over five years.

Given the income bonanza on offer, I would consider buying this stock if I wanted a higher yield.

NextEnergy Solar Fund

Finally, we have it NextEnergy Solar Fund (LSE: NESF). This FTSE 250 renewable energy investment trust produces a good forward yield of 10.5%!

The fund has a portfolio of 103 solar assets across the UK and Italy, enough to power the equivalent of 301,000 homes for 12 months. Last year, it increased its dividend by 11% to 8.35p per share.

However, the market is concerned about the company's debt levels. At the end of March, this stood at £338m. In the case of a high level, this adds risk to the sustainability of profits.

To improve its balance sheet, it sold several assets at a premium to their holding values. That's encouraging, but I'd say this is the most dangerous of the three.

Turning £10k into passive income

There is no guaranteed dividend, just as individual share prices do not always increase. But by building a well-rounded income portfolio, starting with these three top producers, I can eliminate the risk of any single cut.

The average yield of the three is 9.83%. This means that an investment of £10,175 will generate £1k in income per year. And I still have about 50% of my £20k ISA money left to buy more shares!