Image source: Getty Images I’m struggling to get my head around the Diageo (LSE: DGE) share price. I can scarcely believe it’s fallen 45% over the last two years, and 30% in the last 12 months. Isn’t this supposed to be one of the most solid UK blue chips? A defensive stock that holds firm in tough times and thrives in the good? Don’t people like a drink anymore? Well, to a degree, they don’t. Or at least, they can’t afford the premium brands that Diageo sells. Many consumers have traded down to the rough stuff as the cost-of-living crisis…
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MANILA, PHILIPPINES – MARCH 28: U.S. Defense Secretary Pete Hegseth (L), with Chief of Staff of the Armed Forces of the Philippines General Romeo Brawner Jr., inspect honor guards during his visit at Camp Aguinaldo on March 28, 2025 in Quezon city, Metro Manila, Philippines. U.S. Defense Secretary Pete Hegseth is in the Philippines, focusing on strengthening security cooperation and addressing concerns in the South China Sea. (Photo by Ezra Acayan/Getty Images)Ezra Acayan | Getty Images News | Getty ImagesU.S. Defense Secretary Pete Hegseth described Japan on Sunday as indispensable for tackling Chinese aggression and said implementing of a plan…
Image source: Getty Images When I started my first job I was invited to join a penny share investment group. When I asked why they only went for penny shares, the answer was that they obviously have far greater potential than shares that have already risen. I didn’t join. Myth 1: biggest gains It might seem like intuitive sense that a share priced at a few pennies has a lot more profit potential than one priced in pounds. But a bit of thought can show that’s nonsense. I see a good example in Aston Martin Lagonda (LSE: AML). It’s not…
Image source: Getty Images Investors looking to generate passive income from FTSE 100 shares might wonder how much capital they need to hit their target. So let’s crunch the numbers. Generating a second income of £777 a month would add up to £9,324 a year. That’s would give the State Pension a handy boost. The amount of capital required to produce that income depends on the yield of the investor’s portfolio. I believe it’s reasonable to aim for an average yield of 6% from a diversified mix of UK dividend stocks. Under this assumption, an investor would need a total…
Image source: Getty Images After the latest reshuffle, Coca-Cola Europacific Partners (LSE:CCEP) is the latest addition to the FTSE 100. And it has a lot of the hallmarks of a quality passive income investment. The company distributes US giant Coca-Cola‘s products in the UK, Europe, and Australia. While the dividend yield is only 2.5%, I think there’s a lot to like about the business. Invaluable assets On the face of it, the process of manufacturing and distributing soft drinks isn’t particularly attractive. It involves a lot of machinery and equipment and this costs money. That means inflation can be a…
Image source: The Motley Fool If history is anything to go by, growth stocks can generate spectacular returns. But it’s not just about how much earnings per share (EPS) are going to increase in future. In the 1977 letter to Berkshire Hathaway shareholders, Warren Buffett identified a key metric for investors to pay attention to. And it shows there’s more to growth than a rising EPS. Earnings per share On the subject of EPS, Buffett said the following: “Most companies define ‘record’ earnings as a new high in earnings per share… [But] even a totally dormant savings account will produce…
Image source: Getty Images Many investors are attracted to the stock market by the prospect of generating a healthy level of passive income. But when a high-yielding stock’s also growing rapidly, the potential returns can be even more impressive. Take M.P. Evans Group (LSE:MPE), the Indonesian palm oil producer, as an example. Good for income and growth In respect of its 2024 financial year, the group’s declared a dividend of 52.5p a share, an increase of 17% on the previous year. This means the stock’s presently yielding a very respectable 5.3%. The company first paid a dividend in 1993. Since…
An expired patent — previously held by Vanguard — may spark a shake-up in the exchange-traded fund industry.Wall Street saw the patent as critical to Vanguard’s success because it saved an enormous amount of money in taxes. Now, the firm’s ETF competitors could get a chance to use it, too.”It’s really a game changer,” BNY Mellon’s global head of ETFs’ Ben Slavin told CNBC’s “ETF Edge” this week.Vanguard’s patent expired in 2023. How it works: Investors can access the same portfolio of stocks through two different formats: a mutual fund and an ETF. The portfolio has the same managers and the same…
Image source: Getty Images The deadline to shelter up to £20,000 in a Stocks and Shares ISA for this tax year is looming. And right now, I think this pair of FTSE 100 dividend stocks are worth considering to aim for tax-free passive income. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due…
Image source: Getty Images Generating a reliable second income from an ISA is a goal for many investors, but how much capital is required? The answer depends on dividend yields and the power of compounding over time. A £6,000 monthly income translates to £72,000 per year. But, the amount needed in an ISA to provide that depends on the average dividend yield of the portfolio. With a 5% dividend yield, an investor would require a portfolio worth £1.44m. At 4%, the figure rises to £1.8m. At 3%, it would take £2.4m to generate the same level of income. Targeting a…