[ad_1] Image source: Getty Images When income stocks start offering dividend yields in double-digit territory, that’s when investors should become sceptical. While these enormous payouts can seem like golden opportunities at first, they’re often followed by a cut due to their unsustainability. However, there are always exceptions to this rule. And by successfully identifying businesses that most investors are underestimating, some enormous passive income streams can be unlocked. That’s what’s brought Foresight Environmental Infrastructure (LSE:FGEN) onto my radar. With a share price of around 68.3p, a single £500 lump sum is enough to buy approximately 732 shares today. And with…
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[ad_1] Image source: The Motley Fool As the world’s most famous value investor, it’s no surprise that Warren Buffett has been a net seller of stocks in 2025. After all, valuations in the US are getting pretty stretched, and it’s becoming increasingly harder to find bargains or even fair prices for fantastic companies. However, even with Berkshire Hathaway‘s cash pile now sitting above $380bn, Buffett and his team have still been doing some shopping. In fact, they’ve just recently bought another 6.6m shares in Mitsui & Co (OTC:MITSY), increasing Berkshire’s stake to over 10%. That makes Buffett’s investment firm one…
[ad_1] Image source: Getty Images Exchange-traded funds (ETFs) are excellent ways for investors to consider gaining exposure to growth shares. Spreading one’s capital over dozens, hundreds, or even thousands of shares protects returns from company-specific blow ups. What’s more, growth stocks can be prone to significant price swings, which a fund can soften thanks to that broad diversification. Finally, an ETF offers a far simpler and less time-consuming route to investing in growth shares. Holdings are determined either by tracking a pre-set index or by an expert fund manager, saving investors the trouble of choosing individual stocks. With this in…
[ad_1] Image source: Getty Images A decade ago, I was quite bullish on UK dividend stock WPP (LSE: WPP). The company was performing well, the share price was in a strong uptrend, and dividends were consistently rising, so I had some shares in my portfolio. However, in late 2020, I noticed that the long-term outlook for the advertising company had dramatically changed due to technological disruption. So, I offloaded my shares. Thank goodness I did. Since I sold, they’ve fallen around 65% meaning that £5,000 worth of shares on the day I offloaded them is now worth about £1,750 (note…
[ad_1] Image source: Getty Images. The FTSE 100 offers very little in the way of tech exposure. And when I asked ChatGPT for the best FTSE 100 stocks for a rotation out of tech, it correctly highlighted that. It noted that the index is heavily weighted towards financials, mining and oil. This is true, but hardly rocket science. I was unimpressed by its stock suggestions and the reasoning for them. These included HSBC, BP, Unilever, Rio Tinto and Diageo. Yes, these certainly aren’t tech stocks, but I fear ChatGPT has just sent me the most prevalent names in non-tech sectors.…
[ad_1] Image source: Getty Images As a value and income investor, I’m always seeking under-valued shares offering generous dividend yields. For me, the UK stock market looks cheap, hence the FTSE 100 and FTSE 250 are my core hunting grounds for finding good businesses at fair prices. Within the mid-cap FTSE 250, I found seven stocks offering dividend yields above 10% a year. However, I tend to steer clear of stocks with double-digit cash yields, as history teaches me that such high payouts often get slashed in troubled times. Delightful dividends I’m aware of two other problems when hunting for…
[ad_1] Image source: Getty Images November has traditionally been one of the best months in which to buy S&P 500 stocks. Following a recent stock market pullback, today investors have a large number of attractive potential dip buys to consider. Bank of America data shows that, since 1927, the S&P 500 has risen 59% of the time in November and by an average of 1%. According to LLP Financial, this monthly outperformance dates all the way back to 1950, with rises in 10 of the last 11 years. Past performance isn’t always a reliable guide to future returns. And the…
[ad_1] Image source: Getty Images The Barclays (LSE: BARC) share price has been one of the FTSE 100‘s brightest lights and shows no sign of slowing. It’s up almost 60% over the last year and 270% over five, which is striking when set against a cost-of-living squeeze and weak UK growth. Ironically, recent higher inflation has helped. It pushed up interest rates and widened net interest margins, the gap between what banks pay savers and charge borrowers. Barclays also retains a large US investment bank, giving it access to a market that tends to grow faster than the UK. It adds risk…
[ad_1] Image source: Getty Images If I’m looking at an income stock, one of the first things I check is the yield. I doubt I’m alone in that. Yields are calculated by taking the dividend per share and dividing it by the share price. So if a company is forecast to pay a dividend of 5p and the shares cost £1, the yield is 5%. That’s what a new investor can expect if they buy today, but in practice yields are more interesting (and potentially rewarding). Many companies aim to raise dividends year after year. If the following year the stock…
[ad_1] Image source: Getty Images Investors looking to build long-term wealth inside an ISA should consider how much income they’d realistically like to target. Hitting £1,000 a month sounds a good starting point. It would add up to £12,000 a year. Using the 4% withdrawal rule, which means the capital shouldn’t run dry, they’d need a pot of roughly £300,000. From next April, the full new State Pension will be worth £12,547.60. Anyone who can build their ISA to generate £12,000 tax-free will almost double that figure, with every penny of that income sheltered inside the wrapper. That’s the beauty…