Image source: Getty Images Stuffing a Stocks and Shares ISA full of dividend shares is one way to try and build a sizeable second income. That can be a lucrative approach and doesn’t involve the time and effort of taking on a second job. How does it work in practice? Let’s get into it. How dividends can mean income The amount of income an ISA earns depends basically on two factors – how much is invested and at what dividend yield. Dividend yield is the annual income expressed as a percentage of the cost of the shares. So, for example,…
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Image source: Getty Images I’ve been tempted to tuck into Diageo (LSE: DGE) shares for a long time. But based on their performance over the last four years, I’m very grateful for not pushing the Buy button. Once mighty… Back in late-October 2021, shares in the owner of brands such as Guinness, Johnnie Walker whisky and Smirnoff vodka were riding high. And with good reason. Having been sent indoors during multiple Covid-related lockdowns, it was only natural that people would want to get out there and enjoy themselves in pubs, bars and restaurants. But even consumption at home was still…
Image source: Getty Images I’ve been cheering on a UK stock that’s recovering from recent troubles at lightning speed, and I’m hoping there’s more action to come. The company in question is Burberry Group (LSE: BRBY). It used to reside in the FTSE 100 and now features in the FTSE 250. Although at the rate it’s going, not for long. Its shares plunged as luxury-fashion sales fell, Chinese demand weakened and heavy discounting hit its premium image. I dived in after the first profit warning, only to find myself sitting on a quickfire 40% loss as its troubles intensified. Burberry shares recover Then the…
Image source: Getty Images When it comes to buying stocks, I aim to try and strike a balance. My portfolio contains some relatively small, speculative names, but I also like to own shares in big established companies. These often tend to have strong competitive positions with economies of scale or entrenched customer relationships. But this doesn’t always come with a correspondingly high share price. Size matters There are a lot of advantages to owning shares in businesses that have been around a long time. One of the most obvious is that they often benefit from strong reputations. Take Legal &…
Image source: Getty Images The BAE Systems (LSE: BA.) share price is up around four-fold in the last five years. The surge, which isn’t even including dividends, has come on the back of a drastically different global outlook. The world is sadly a less peaceful place, and therefore defence spending is on the rise. What does the future have in store? Are overflowing tensions going to spur more growth in defence stocks? Or are we at the moment of peak hysteria? Are BAE Systems shares overvalued and perhaps in bubble territory? Personally, I think the former. And I believe a…
Image source: Getty Images What are Stocks and Shares ISA ‘Super Investors’? It’s a term AJ Bell uses for its customers who have a Stocks and Shares ISA with more than £1m in the account. Given ISAs have only been around since 1999 and have strict deposit limits, these Super Investors likely know a thing or two about growing their money. I doubt I’m ruffling any feathers when I point out that a million pounds is quite a lot of money already. But it’s especially powerful in an ISA. Targeting a 5% return from that through dividend stocks could yield…
Image source: Getty Images Lloyds Banking Group (LSE:LLOY) has been one of the FTSE 100’s top-performing shares since 2020. But looking ahead, I’ve got my eye on a different name in the banking sector. Over the next five years, I expect Barclays (LSE:BARC) to fare better. The stock’s outperformed in recent times and I expect this to continue. Investment banking Operationally, Lloyds is focused almost exclusively on retail banking. Barclays, by contrast, combines its retail presence with a major investment banking operation. Over the last few years, Lloyds has had an advantage. Higher interest rates have resulted in wider lending…
Image source: Getty Images Finding good value UK stocks that offer generous income payments can be tricky. However, it doesn’t mean that there aren’t any to be found. Here’s one FTSE 250 idea I spotted last week that could be interesting for investors to consider. Worthy of interest I’m referring to ITV (LSE:ITV). It’s a well-known UK-based media company operating in three main overlapping business areas: broadcasting, content production, and streaming. Over the past year, the share price is down a modest 6%. The dividend yield is 7.1%, over double the index average. ITV has a few different avenues where…
Image source: Getty Images It can be hard to spot genuinely undervalued stocks because some of the metrics are quite subjective. However, when considering an investment trust, it can be easier to see the relative value. Here’s one I saw that could be undervalued by up to 16%, with a generous yield for income investors. A commercial property gem The stock I’m referring to is Schroder Real Estate Investment Trust (LSE:SREI). It’s up 6% in the past year, with a current dividend yield of 6.6%. As a REIT, it has a clear aim to provide shareholders with an attractive level…
Image source: Getty Images Nvidia (NASDAQ:NVDA) stock hasn’t maintained its meteoric rise of the past few months. The stock’s plateaued. And there’s nothing wrong with that. While other artificial intelligence (AI)-exposed peers have been surging, Nvidia stock has started to look cheaper. So how’s this happened? Well, it’s all about earnings forecasts. Over the past few months — buoyed by Nvidia’s earnings reports and industry developments — analysts have raised their forecasts for the coming years. The current forecasts suggest that analysts expect Nvidia to grow earnings by 35.6% annually on average over the next three-to-five years. That’s phenomenal, and…