Image source: Getty Images A Stocks and Shares ISA can provide a simple platform to try and generate passive income – and I think that is especially true over the long term. Here’s how much income in the form of dividends a £20k ISA could hopefully generate over the coming decade. Jam today, or jam tomorrow? There are two different approaches to drawing down the dividends. One is to take out the dividends as they come and use them as passive income. Once removed from the Stocks and Shares ISA wrapper, they will lose the tax-protected status they had in…
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Image source: Getty Images Lately, a lot of investors (myself included) have been looking at some increasingly frothy-looking stock market valuations and wondering if they may suggest that we are headed for a crash. There will be a crash sooner or later, of course. There always is. But nobody knows when it will come. It might start tomorrow – or not for decades. (I would be surprised if we have to wait for decades, but it is a possibility). While there is a lot of chatter right now about what happens if there is a stock market crash I think…
Image source: Meta Platforms After missing Q3 earnings forecasts on Wednesday (29 October), Meta (NASDAQ:META) is seeing its share price fall. But the entire stock market might also have reason to be nervous. CEO Mark Zuckerberg told analysts that the company’s artificial intelligence (AI) investments are likely to work. Investors however, don’t seem to be entirely convinced. Earnings results Meta’s revenues for Q3 came in at $51.2bn – 26% higher than a year ago – but earnings per share crashed 82% to $1.05. That’s obviously well short of what analysts were expecting. One reason for this is a one-off tax…
Supermarkets are often seen as defensive businesses, so it is not surprising that at a time of market volatility they can attract investor attention. Still, Tesco (LSE: TSCO) has been doing very well lately. Over the past year, the Tesco share price has moved up 32%. Now, that may not be because of factor specific to Tesco. Rival J Sainsbury has moved up by 31% over the same period. Still, the Tesco share price has been doing well. Can it now reach £5? A tough market and not getting easier The share price rise might suggest that Tesco is in…
Image source: Getty Images The Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOGL) share price jumped in early Thursday (30 October) trading after the tech giant’s third-quarter results the day before had smashed expectations. Revenue surged 16% year-on-year to $102.3bn — the first time Alphabet has crossed the $100bn quarterly mark — while net income climbed 33% to nearly $35bn. Earnings per share rose 35% to $2.87, well ahead of analyst forecasts of $2.27. This is quite an astonishing beat for a mega-cap stock. Just remember, there were something in the region of 40 analysts forecasting this quarter. And their collection earnings projection was just so far…
Factor investing promised to bring scientific precision to markets by explaining why some stocks outperform. Yet after years of underwhelming results, researchers are finding that the problem may not be the data at all; it’s the way models are built. A new study suggests that many factor models mistake correlation for causation, creating a “factor mirage.” Factor investing was born from an elegant idea: that markets reward exposure to certain undiversifiable risks — value, momentum, quality, size — that explain why some assets outperform others. Trillions of dollars have since been allocated to products built on this premise. The data…
Image source: Getty Images My regular morning coffee costs me £4.30 at the shop. Granted, this is a London price, but with prices seemingly always going up, I can’t be alone in thinking there’s a better use for this money. One potential angle could be to save this amount and invest it in the stock market each month to try to generate passive income. Adding everything together Assuming a 30-day month, cutting out one coffee a day could save an investor £129. The average dividend yield of the FTSE 100 is 3.1%. On the face of it, making £4 a…
Image source: Getty Images In my view, FTSE 100 dividend stocks are hugely underrated. Some offer ultra-high dividend yields of 7% or 8%, and may also deliver plenty of share price growth on top. The higher the yield, the more income savers can generate from the same pot of money. And it will be tax-free for those who invest inside their Stocks and Shares ISA allowance. 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…
Image source: Getty Images We can easily overlook the Standard Chartered (LSE: STAN) share price when we think of FTSE 100 banks. It mostly works in the world of corporate banking, so it doesn’t make the headlines the way retail banks like Lloyds Banking Group do. But ignoring Standard Chartered means turning up our noses at a 215% share price gain over the past five years. And it’s up 60% in 2025 alone. Let’s see what third-quarter results tell us. Hitting targets In a 30 October update, CEO Bill Winters said: “We now expect to deliver an underlying return on…
Image source: Getty Images Rolls-Royce (LSE:RR) shares appear to have run out of steam. They’re only about 5% higher than they were back in August. Perhaps some investors are wondering whether to sell some shares and crystalise gains. It’s gone through my head recently, with the FTSE 100 stock up more than 100% in the past year. Therefore, I was interested to see that two insiders have just sold shares. And it was the CEO and CFO no less! Is this anything to worry about? Transactions On 27 October, CEO Tufan Erginbilgiç offloaded 7,433 shares at a price of 1,133p…