[ad_1] Image source: Getty Images A Stocks and Shares ISA can be a great tool for people to make tax-efficient investments. Obviously, everyone’s circumstances are different, but being able to accumulate dividend income without paying dividend tax on it is a big help. For those aiming to kick on and make a five-figure annual passive income, here’s how to go about it. Tweaking parameters To begin with, it starts with the numbers. Building a £10k second income is only realistic if someone can commit to regularly investing a set amount each month in the hundreds of pounds. It’s not really…
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[ad_1] Image source: Getty Images I think UK shares might offer investors decent protection in a stock market crash. But that’s not the reason I’ve been buying them recently. My view is that valuations are more attractive in the FTSE 100 and the FTSE 250 than elsewhere. And for those who haven’t already, now might be a good time to take a look. Artificial intelligence The main risk with the stock market right now is artificial intelligence (AI). The big question is whether the investments the likes of Meta Platforms are making will ultimately pay off. There are concerns they…
[ad_1] Image source: Getty Images The FTSE 100 has an excellent reputation when it comes to dividends. Loaded with mature, financially robust companies, the index is a natural hunting ground for investors seeking the best dividend stocks to buy. But is the Footsie’s crown beginning to slip? Data shows that smaller companies on the London stock market may be better options for large dividends today and in the future. Could dividend hunters who focus on blue chips be missing out on potential riches elsewhere? Leftfield dividend heroes According to Octopus Investments both the FTSE SmallCap (excluding investment trusts) and the…
[ad_1] Image source: Getty Images There are some tidy businesses on the Alternative Investment Market (AIM), making this a great place to look for opportunities for an ISA or SIPP portfolio. Especially while many AIM shares are out of favour. As a reminder, London’s junior market is generally for small and medium-sized firms. In theory, then, there’s a greater chance of finding hidden gems in this part of the market. Here’s an AIM-listed stock that’s worth highlighting while it’s out of favour. Fevertree I’m talking about Fevertree Drinks (LSE:FEVR), the maker of premium tonic and other mixers. It crashed in…
[ad_1] Image source: Getty Images The Glencore (LSE: GLEN) share price has a habit of making hay while the sun shines. When the global economy is booming, and demand for metals and minerals is high, the stock can fly. Natural resources is a highly cyclical sector, so when growth and sentiment dip, Glencore shares can fall even faster. It’s been down in the dumps for several years but suddenly I’m seeing signs of a recovery. Is the cycle now swinging back in its favour? While the FTSE 100 commodity stock is still up 62% on five years ago, it’s down…
[ad_1] Image source: Getty Images The share price of defence powerhouse BAE Systems (LSE: BA.) has experienced a sharp fall recently. Since early October, it has declined around 20%. Should investors consider buying the dip? Let’s discuss. Favourable backdrop for defence companies While the heat may have come out of BAE System’s share price recently, the backdrop for the defence company still looks very favourable, in my view. For a start, geopolitical risk remains high. Currently, there are multiple wars taking place across the world – and a lot of tension between certain countries – so no government can afford…
[ad_1] Image source: Getty Images I don’t think many people were expecting Lloyds‘ (LSE:LLOY) share price to deliver the stunning gains we’ve seen so far in 2025. Up 75%, the FTSE 100 bank has left its blue-chip rivals like Barclays (+63%), HSBC (+37%) and NatWest (59%) trailing in its dust. At 96.4p, it seems a matter of time before Lloyds shares blast through the £1 marker. But let’s forget about that fairly modest target for a moment. Given its stunning gains this year, could we see the bank double in value in 2026? Good news! There are a lot of…
[ad_1] Image source: Getty Images The longer I hold dividend shares, the more I appreciate them. Their regular payouts get time to compound and grow, turbo-charging any growth I get if their stock rises too.They can turn a modest holding into a tidy income stream over time, particularly when held in a tax-free Stocks and Shares ISA. In 2023, I added two of my favourite FTSE 100 income stocks to my Self-Invested Personal Pension: wealth manager M&G (LSE: MNG) and insurer Phoenix Group Holdings (LSE: PHNX). At the time, both offered eye-popping yields of around 10%, far above the FTSE 100 average of 3.25%. However,…
[ad_1] Image source: Getty Images The FTSE 100 stock I’ve been watching most closely this year isn’t one of the usual names in the headlines. But it’s been quietly beating the biggest US growth stars. Can it continue to smash them? Investers have been dazzled by mighty US tech names such as chip maker Nvidia. Its shares are up a mind-boggling 1,238% over five years, but the pace has slowed as it’s now a $4.4trn giant with a toppy-looking price-to-earnings (P/E) ratio of 45. Airtel Africa flies under the radar I hold Nvidia but I’m in no rush to buy more at…
[ad_1] Image source: Getty Images Warren Buffett’s latest investment, Alphabet (NASDAQ: GOOG) stock, has shot up recently. Over a six-month timeframe, it’s up almost 90%. Now, I’m a fan of Alphabet but when the stock hit $326 in November, I decided to sell around a fifth of my holding. Here’s why I made this move. A legendary company The owner of Google and YouTube, Alphabet’s a world-class company. And right now, it’s doing a lot of things right. Just look at what it’s done in the generative AI space. Not only has it enhanced its search offer with tools like…