Image source: Getty Images UK stocks offer plenty of opportunities to generate healthy levels of passive income. Here are two examples. 1. Harbour Energy The Harbour Energy (LSE:HBR) share price has come under pressure since the middle of 2022, when the previous government announced plans to introduce an energy profits levy (or windfall tax) on profit made from the North Sea. To help mitigate the impact, the oil and gas producer bought the upstream assets of Wintershall Dea. The group now has operations in nine countries and faces a lower average tax rate than before. Harbour’s current policy is to…
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With interest rates poised to fall further in the coming months, UK savers are being encouraged to act quickly to secure the top deals before they go. The Bank of England recently held the base rate steady at 4.25%; however, analysts anticipate further cuts later this year, which could erode the competitive rates currently available on the market.Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Savers continue to be hit by the handful of base rate cuts over the past year as all the top rates for non-ISAs have dropped compared to the market leaders in June 2024.” She added: “Consumers need…
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…
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…