Image source: Getty Images Thinking of stuffing an ISA with dividend shares as a way to earn passive income? That is exactly what lots of people do – and it can be a lucrative approach to generating some additional income without having to take an extra job. Here’s how dividend shares work To start, let me explain a bit about why dividend shares can potentially be lucrative. When a company generates spare cash, it typically has a choice of what to do with it. It might plough it back into marketing, for example, or invest in research and development. Some…
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Image source: Getty Images Meta (NASDAQ: META) stock’s been a fantastic investment in recent years. However, in the last week it’s come unstuck, falling about 14% Now, this is one of the few Magnificent 7 stocks I don’t own currently. Should I buy it for my ISA after this double-digit percentage fall? What’s behind the fall? Meta stock fell sharply after the social media company posted its earnings for the third quarter of 2025 last week. The results weren’t bad. In fact, they’re well ahead of estimates. For the period, revenue came in at $51.2bn (up 26% year on year)…
Image source: Getty Images Penny stock companies have a reputation for draining their coffers just to stay afloat, so it’s always a surprise to spot one flaunting a fat dividend. Enter Oxford Metrics (LSE: OMG), an analytics company worth just £50m that’s flipping the script. It’s a small but complex business, designing and manufacturing advanced sensing devices and intelligent software solutions to measure movement and manage infrastructure. It caters to international customers in sectors like life sciences, entertainment, engineering and smart manufacturing. At the time of writing, it offers a whopping 7.5% dividend yield, with the shares changing hands for…
Image source: Getty Images The London stock market has long been a popular hunting ground for investors seeking a large and reliable passive income. FTSE 100 shares in particular have proven reliable dividend plays with the UK’s premier index packed with cash-generating companies in mature industries and strong payout cultures. That said, UK stocks have lost some of their lustre from a dividend perspective more recently. Underlying dividends (which also exclude special dividends) dropped 0.6% in 2024, representing the second successive year of declines. On a global basis, shareholder payouts rose 6.6%, according to Janus Henderson. In the US, underlying…
Image source: Getty Images A FTSE 100 share I’d written off has suddenly hit the rocket boosters, soaring 65% in a year. Did I see it coming? Yes and no. Yes, because Prudential (LSE: PRU) looked like a brilliant prospect to me, but never fulfilled its potential. No, because I was completely blindsided by the recovery when it finally came. Prudential share price flies Prudential had re-engineered itself to focus on massive pension, health insurance and investment markets across Asia and Africa. Analysts applauded its brillant strategy, which gives it huge growth potential from millions of global emerging middle class consumers. I…
Image source: Getty Images The Tesco (LSE: TSCO) share price has taken me by surprise. I thought this FTSE 100 blue-chip might turn out to be a bit of a plodder. How wrong I was. The grocery chain’s a massive operation with around £70bn turnover, and tight profit margins of roughly 3.5%. It carries huge fixed costs including a nationwide chain of stores, more than 300,000 staff, and a complex logistics network. Add in fierce competition from German discounters Aldi and Lidl, and the challenge seems enormous. Brilliant FTSE 100 stock Yet over the past five years, Tesco’s taken on all-comers and…
Image source: Getty Images The FTSE 100 is well known for its world-beating dividend yields, but it seems to be having an all-round stormer of a year. London’s leading index is having one of its best years this century. Investors are flocking to the biggest British stocks. Why? The defensiveness of the index likely plays a part, as will those bumper dividends. The Footsie average dividend yield outperforms what’s on offer from most other developed countries, not just at the moment, but historically too. Dividend hunters are looking at well over double in percentage terms compared to the S&P 500.…
Image source: Getty Images There can’t be many stocks that have jumped in value this year and still offer a very chunky dividend yield. But I’ve spotted one from the FTSE 250 that I suspect is flying under the radar of plenty of income chasers. What is this ‘secret’ FTSE 250 stock? The stock is question is Ninety One Group (LSE: N91). Formerly a part of Investec, the investment manager has a focus on emerging markets, such as Asia, Africa and Latin America. Its share price has been charging ahead in 2025. A gain of 60% vastly outperforms that of…
Image source: Getty Images Babcock International Group (LSE:BAB), the FTSE 100 defence, aerospace and security company, has seen its share price soar by 156% since the start of November 2024. It has some civilian customers but most of its business comes from the sale of military equipment as well as the provision of front-line support and training. The group’s involved in every one of the UK’s naval programmes comprising submarines, aircraft carriers and frigates. On the up Over the past four financial years, the group’s grown rapidly. During the year ended 31 March 2025 (FY25), its underlying earnings per share…
Image source: Getty Images FTSE homebuilder Taylor Wimpey (LSE: TW) paid a dividend last year of 9.46p. This gives a standout dividend yield of 9% on the current share price of £1.05. By comparison, the current average yield for the FTSE 100 is 3.3% and for the FTSE 250 it is 3.5%. The firm’s dividend yield is also double the ‘risk-free rate’ (the 10-year UK government bond yield) of 4.4%. Looking ahead, consensus analysts’ forecasts are that Taylor Wimpey’s dividend yield will remain above 8% until 2027. How much passive income? Passive income is money made with minimal effort, most…