A second income makes a huge difference to long‑term financial security, especially when markets turn choppy or inflation eats into savings.

These returns are always easier to build when a stock offers resilience and a business model capable of supporting dependable long‑term payouts. And ITV (LSE: ITV) fits that brief far better than the market appears to realise, given its present price.

So what sort of annual dividend income could investors be looking at?

On a rising trend?

From 2022 to 2025, ITV has paid a yearly dividend of 5p a share. The results has been respective average annual dividend yields of 6.7%, 7.9%, 6.8%, and 6.1%.

That said, these payouts can go down and up over time. As of now, the stock is yielding 6.2% — double the current FTSE 100 average of 3.1%.

However, analysts forecast it will raise its dividend to 5.01p this year, 5.06p next year, and 5.27p in 2028. These payouts would produce annual dividend yields of 6.3%, 6.4%, and 6.6%. This latter figure is nearly double the present 3.4% average of the stock’s home index — the FTSE 250.

How much yearly dividend income?

Using the 6.6% forecast as an average, a £20,000 holding in ITV would make £18,626 after 10 years and £124,071 after 30 years.

The figures assume that dividend compounding is used, which means reinvesting the dividends paid back into the stock. This process has an extraordinary turbocharging effect on returns over time.

At the end of the 30 years, the holding’s total value (including the original £20,000 stake) would be £144,071. And this would deliver a yearly income from dividends alone of £9,509!

Is this supported by the core business?

But dividend projections only hold water if the underlying business is generating the strength and stability needed to support them over time.

A risk to ITV is the continued fragility of the UK advertising market. Another is the rising cost and competitive intensity of premium content production. These can squeeze margins, especially if global demand softens or if ITV Studios faces delays in green‑lighting new projects.

Nevertheless, analysts forecast that ITV’s profits will rise by an average of 6.2% a year to end-2028, at least. That said, the firm’s latest full-year 2025 results indicate this might be an underestimate.

Statutory operating profit jumped 14% year on year to £363m. It underlined the benefit of tight cost control and stronger Studios deliveries to global streaming platforms. Meanwhile, total digital revenue climbed 10% to £614m, reflecting double‑digit growth in digital advertising and the continued expansion of ITVX’s viewing base.

And ITV Studios revenue increased 5% to £2.13bn. This illustrated the strength of its diversified global production model and rising demand for high‑end scripted content.

My investment view

ITV’s resilient underlying earnings momentum reflects a business that can continue to support cash generation and a stable dividend profile. And this steady cash generation, disciplined cost control and growing digital footprint give it multiple levers to expand shareholder returns.

Consequently, I think it well worth the attention of savvy, long-term investors looking for a second income.

I already hold several such stocks, with my attention instead having recently been focused on high-growth shares that look very undervalued to me.

Should you invest £5,000 in ITV right now?

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Simon Watkins does not hold any positions in the companies mentioned.