Image source: Getty Images One way many people earn passive income is by putting money into blue-chip shares of well-known companies, then earning dividends from them. That has benefits, including being able to earn money from the successful work of proven businesses. One of the things I like about this approach is that it can be tailored to an investor’s individual financial circumstances. So for example, I discuss an approach using £20,000. But the approach could be applied with less or more money, albeit the passive income streams created would vary accordingly. Over £900 a month in income — like…
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Image source: The Motley Fool Billionaire investor Warren Buffett is known for making huge sums of money by making canny investments in individual shares like Coca-Cola and Apple. But when it comes to whether most small private investors with a bit of spare cash ought to follow his approach, he has a potentially surprising point of view. Simply put, he reckons many of them should forget doing that and instead simply put the money into a fund that tracks a stock market index, such as the FTSE 100 or S&P 500. The logic of indexing There are several reasons why…
Image source: Getty Images Brickability Group‘s (LSE:BRCK) a distributor of construction materials (not just bricks) and has built (excuse the pun) a reputation as a dividend stock. And with earnings growing strongly I’m sure shareholders will be hopeful that its payout will continue to rise. On 24 April, the group released a pre-close trading update stating that revenue for the year ended 31 March (FY25) is expected to be 7% higher than in FY24. Also, adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is forecast to be 11% better. Some of the improvement is due to its specialist cladding…
Image source: Getty Images On the face of it, PayPal (NASDAQ:PYPL) ought to be on my list of shares to buy. The company has a market value of $69bn and has generated just under $6bn in free cash in the last year. With minimal debt, that implies a free cash flow yield of almost 9%. That’s pretty high considering the business isn’t in decline – but there’s a catch when it comes to the valuation. Share buybacks With no dividend, PayPal returns cash to shareholders via share buybacks. These work by reducing the outstanding share count, increasing the value of…
Image source: Getty Images Those with a Stocks and Shares ISA will be familiar how it can be badly affected by uncontrollable events. In recent weeks, President Trump’s erratic approach to tariffs has caused turmoil for global stock markets. And with so much uncertainty, it’s hard to know who the winners and losers will be. That’s why, at times like these, I think it’s a good idea to try and spread risk over as many investments as possible. But that’s easier said than done. For example, how many is the ‘correct’ number of stocks to own? A possible option One…
Image source: Getty Images The US stock market’s close to another all-time high, at least when looking at the S&P 500 index. That’s terrific for anyone who’s been snapping up shares in recent years. However, despite the seemingly strong investor sentiment, there are some potentially massive risks being overlooked, several of which could even trigger a full blown crash later this year. Major red flags There are several concerning trends that the market is seemingly ignoring. I think the three biggest are: 1. Rich/fragile valuations The investment management company Pimco has recently calculated the cyclically adjusted price-to-earnings (CAPE) ratio of…
Image source: Getty Images Melrose Industries (LSE:MRO) and Airbus are both major players in the aerospace sector, albeit the former being much smaller than the latter. However, I also believe they’re both rather exciting value stocks, providing exposure to a fast-growing sector with secular trends contributing to strong expected earnings growth. And by secular trends, I’m referring to rising global air traffic, a growing middle class, and surging demand for more efficient, sustainable aircraft. Advancements in digital technologies, artificial intelligence (AI) and automation are transforming manufacturing and maintenance, while defence spending and aftermarket services provide resilient long-term growth opportunities for the…
The average rate on a 30-year U.S. mortgage eased for the third week in a row, a welcome trend for prospective homebuyers at a time when elevated borrowing costs remain a drag on the housing market. The long-term rate fell to 6.81% from 6.84% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.87%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate eased to 5.96% from 5.97% last week. A year ago, it was 6.13%, according to Freddie Mac. Mortgage rates are influenced by several…
Image source: Getty Images The market dislikes nothing more than uncertainty. So, on news that CEO Rob Perrins is to leave the role, it’s no surprise that The Berkeley Group (LSE:BKG) is one of the FTSE 100‘s worst performing stocks in the past 24 hours. In a release on Friday (20 June), the housebuilder announced the long-standing chief executive will move over to become chair on 5 September. He will replace Michael Dobson, who has held the role for the last three years. The merry-go-round will also see Richard Stearns, Berkeley’s chief financial officer since 2015, take over from Perrins…
Image source: Getty Images Rocket Lab (NASDAQ:RKLB) is a US-listed growth stock that gives investors rare access to the commercial space sector. As a vertically integrated launch and space systems provider, Rocket Lab is often compared to SpaceX in its ambition and capabilities. But there’s one crucial difference: you can actually buy shares in Rocket Lab, while SpaceX remains private. Rocket Lab delivers launch services, builds small and medium-class rockets, and manufactures spacecraft components for a range of commercial, government, and defense customers. With rapid revenue growth, an impressive order book, and expansion into new markets, Rocket Lab offers public…