Forget the Lloyds share price. These FTSE 100 shares can make me a passive income

Lloyds Banking Group (LSE:LLOY) has had its truthful share of points just lately. Despite a higher couple of months for the Lloyds share worth, I might nonetheless keep away from it and deal with FTSE 100 dividend shares to assist make me a passive income.Why I’m avoiding the Lloyds share worthLloyds share worth has risen almost 30% in worth throughout the previous three months. I consider that is carefully linked to optimistic updates associated to the British financial system. The FTSE 100 financial institution’s fortunes are tied to a robust financial system in my view. I like to speculate for the long run and that is the place Lloyds falls down for me.I consider Lloyds might be affected by low rates of interest dictated by the Bank of England. These should rise for Lloyds and different banks to ship wholesome earnings. I consider the implications of Covid-19 will have an effect on the financial system for a very long time too. Closure of companies, the finish of furlough and rising unemployment will bode negatively for it.I additionally worry for conventional banks attributable to the rise of challenger banks on the scene. The rise of Monzo, Starling, and Metro Bank will solely dent Lloyds earnings. For now, the Lloyds share worth is a no go for me.Dividends throughout the FTSE 100I would moderately deal with dividend shares that might assist make me a passive income. Dividends have been lower throughout the FTSE 100 when the markets crashed and firms scrambled to preserve money. With reopening on the horizon, there are some juicy dividend payers on the market that symbolize a higher choice for me than the Lloyds share price.FTSE 100 tobacco producers Imperial Brands and British American Tobacco stand out. There is certainly an elevated deal with investing ethically, so these two tobacco producers is probably not everybody’s cup of tea. Imperial Brands provides a dividend yield of near 10% and British American Tobacco provides simply much less at 8%. Despite a few of the stigma round smoking companies, these two proceed to carry out effectively and distribute wholesome dividends to traders which is tempting. Don’t anticipate the reported demise of the tobacco trade to return to fruition any time quickly in my view.Story continuesSteel maker Evraz is one other FTSE 100 dividend payer I actually like. A forecast yield near 11% makes me sit up and concentrate. The danger with Evraz is the undeniable fact that the commodities market is a risky one, virtually as risky as the Lloyds share worth. This has been displayed when Evraz skilled a turbulent time and brought about its dividend to be erratic. In addition to Evraz, different commodities companies additionally carry a excessive dividend yield. These are Rio Tinto which provides 10% and BHP Group on 7.6%.Year aheadI have pinpointed a few FTSE 100 dividend shares that stand out to me. The few I’ve recognized positively symbolize a higher funding that the Lloyds share worth proper now for me.In phrases of the yr forward, the banking sector could possibly be about to expertise a bounce again in 2021. Analysts predict the conventional banks to bounce again and even supply greater dividends. I feel dividend yields will nonetheless be low however higher than 2020 for certain.Like the Lloyds share worth, the Rolls-Royce share worth has struggled in the previous yr. Here’s what I consider might occur over the coming months for Rolls-Royce.The publish Forget the Lloyds share worth. These FTSE 100 shares can make me a passive income appeared first on The Motley Fool UK.More readingJabran Khan has no place in any shares talked about. The Motley Fool UK has really helpful Lloyds Banking Group. Views expressed on the corporations talked about on this article are these of the author and due to this fact might differ from the official suggestions we make in our subscription companies similar to Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we consider that contemplating a numerous vary of insights makes us higher traders.Motley Fool UK 2021