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…
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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…
History shows that the most successful ISA investors are those ‘early birds’ who invest early in the tax year. Over time, they tend to achieve the greatest capital gains and the highest dividends, as their money is working for them for longer. With the new fiscal period around the corner, I’m looking at ways that an individual could maximise their passive income in 2025/26. Here’s one strategy for investors to consider. Choosing ISAs It’s fair to say that most of us have heard of the Stocks and Shares ISA. Acccording to NatWest, 60% of Brits are aware of these tax-efficient…
Image source: Getty Images I’ve long wished that SpaceX was available as a stock to buy. Alas, the space exploration giant prefers to remain private as it works towards making humans a multi-planetary species. However, UK investors can get exposure to SpaceX through investment trusts. One that I think is worth considering for a growth portfolio is Schiehallion Fund (LSE: MNTN), whose top holding is SpaceX. The quirky-sounding fund is named after the Schiehallion mountain in Scotland and currently has a $922m market-cap. It’s managed by Baillie Gifford, the asset manager best known for running Scottish Mortgage Investment Trust. Unlike…
People who live longer, happier lives tend to have some commonalities: strong social connections, healthier diets, a positive attitude.They also have high levels of a specific personality trait: conscientiousness.Of the big five personality traits — openness, conscientiousness, extroversion, agreeableness and neuroticism — conscientiousness, or how organized and disciplined you are, is the most related to longevity, David Watson, a former professor of personality psychology at the University of Notre Dame, told CNBC Make It.This is likely because people with high degrees of conscientiousness are better at taking care of themselves. They tend to drink alcohol in moderation and eat more…