5 easy passive income ideas I love

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Passive income ideas are not always easy to implement. But the more work they require, the less they are really passive. That’s why some of my favorite passive income ideas are UK dividend stocks that I can buy for my ISA. Here are five simple passive income ideas among UK dividend stocks that I would consider adding to my ISA today.

1. Direct line

Insurer and financial services provider Direct line has an 8% return, earning it a spot on my list of passive income ideas in the financial services industry. With more than 14 million policies in force, the company benefits from economies of scale. Its iconic red phone brand should make it possible to attract and retain customers for less. Below normal auto loss levels this year could boost 2021 profits.

5 actions to try to create wealth after 50 years

Markets around the world are reeling from the coronavirus pandemic … and with so many large companies trading at prices that appear to be ‘discount containers’, now may be the time for savvy investors to close. potential business.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during an unprecedented time.

Fortunately, Motley Fool UK’s team of analysts shortlisted five companies that they believe STILL offer significant long-term growth prospects despite global upheavals …

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But there are risks here. Today, the company warned that rising used vehicle costs could increase its claims costs.

2. National network

Much of the backbone of the UK electricity grid is supplied by national grid. This gives the company what investor Warren Buffett calls a “pit”: Something that helps them maintain a competitive advantage. In turn, this means that it can generate a profit and fund a dividend that currently stands at 5.2% per annum of today’s share price.

This places National Grid firmly on the list of passive income ideas I would consider buying for my wallet. But one of the risks is the increase in investment spending to meet changing energy needs. This could hurt profit margins.

3. British American tobacco

From cigarettes to vaping, British American Tobacco is a company whose strong brands such as Stroke of luck give it pricing power. Falling demand for cigarettes in key markets is putting future revenue and profitability at risk, but for now, the cash cow business pays the company an 8.4% dividend.

Newer formats such as vaping could also help mitigate the revenue impact of declining cigarette sales in some markets, although so far their profitability has been less attractive.

4. Vodafone

Telecom giant Vodafone offers a dividend yield of 6.9%. This is why this is one of the passive income ideas that I would consider adding to my portfolio. With a strong position in many makeshift markets, I believe the company’s extensive network and recognizable brand could help it earn healthy profits for years, if not decades, to come. One of the concerns is the large debt of the company. A service that could reduce the money available to fund dividends.

5. TA

I would also consider PA among the passive income ideas for my portfolio. Major oil and gas reports 4.6%. I expect the energy demand to remain high for a long time. This should benefit BP. If prices come down it could hurt profits, but after falling last year, the dividend looks more sustainable than before.

Put my passive income ideas into action

These five ideas won’t earn me a dime if I don’t do something with them.

It could be as simple as putting money into a stock and stock ISA, buying all five stocks, and sitting around hoping to increase my passive income stream.

5 actions to try to create wealth after 50 years

Markets around the world are reeling from the coronavirus pandemic …

And with so many large companies still negotiating at prices that appear to be “containers of discounts,” perhaps now is the time for savvy investors to close potential deals.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during an unprecedented time.

Fortunately, The Motley Fool is here to help: Our UK CIO and his team of analysts have shortlisted five companies they believe STILL offer significant long-term growth prospects despite the global foreclosure …

You see, here at The Motley Fool, we don’t think “over-trading” is the right route to financial freedom in retirement; instead, we advocate buying and owning (AT LEAST three to five years) at least 15 quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of these five companies in a special investment report that you can download today for FREE. If you are 50 or older, we think these stocks could be suitable for any well-diversified portfolio, and you may want to consider taking a position in the five immediately.

Click here to claim your free copy of this special investment report now!


Christopher Ruane owns shares in British American Tobacco. The Motley Fool UK recommended British American Tobacco. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of ideas makes us better investors.

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