[ad_1] Image source: Getty Images Earning passive income in the stock market’s pretty straightforward. All investors have to do is buy shares in a business that pays dividends, then just sit back, relax, and watch the money roll in. Of course, in practice, this strategy doesn’t always work out as expected. That’s because dividends aren’t guaranteed. And sometimes, even when a stock promises to pay a high yield, that income never materialises, luring investors into a trap. Fortunately, there are several sneaky tactics investors can use to avoid these pitfalls. So with that in mind, how much passive income could…
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[ad_1] Image source: Getty Images Rolls-Royce (LSE:RR) shares reflect one of the greatest stock market recoveries in recent history. From some analysts suggesting it was nearing bankruptcy to now teetering on a £100bn-valuation, it has come a long way in three years. But where will it go next? That’s the question all investors should be asking. Because the company offers a very different proposition than it did a few years ago. So, I asked ChatGPT where it thought Rolls-Royce shares would be in one year. Its answer drew the opinions shared by other analysts. Perhaps not the deep dive I…
[ad_1] Image source: Getty Images Jet2 (LSE:JET2) shares are among the most undervalued in the UK, according to the 12 analysts covering the stock. Now, institutional analysts — those from banks and brokerages — can always be wrong. However, when there are 12 of them saying the same thing, it’s typically a good sign. So, I think it’s worth considering. After all, not many companies are going to be trading at such a huge discount. Let’s take a look at why it may be so undervalued. Why it’s cheap Starting with the less great part… earnings growth. The business had…
[ad_1] Image source: Getty Images If an investor is going to earn passive income on their investments, there’s a strong argument for holding them in a Stocks and Shares ISA. This way, all of that lovely cash that companies throw out is shielded from HMRC’s fingers. In theory, choosing to re-invest rather than spend this money should allow this person’s wealth to compound at a higher rate, hopefully leaving them with a lovely pot to start drawing from later down the line, either to supplement existing income or replace it. But how big a pot would someone eventually need to…
[ad_1] A reader says, “I have been reading Subramoney and Freefincal for a few years. My father thought the stock market was like a lottery and never invested in it. After a few missed opportunities and very low savings at age 30 (<1x my annual expenses), I got my first decent job and realized I had zero equity exposure, I started investing in tax saver mutual funds (HDFC, SBI and Canara) from 2012. I invest directly from the fund website. I invest monthly but don’t do an SIP. I have never missed a month”.“I switched to the new tax regime…
[ad_1] Tokenized money market funds (MMFs) are transforming institutional liquidity but also introducing new cybersecurity threats. Issued as blockchain-based tokens, these funds offer institutions a modern alternative to static cash: programmable collateral, faster settlement, and composable yield. Recent pilot programs by major players like Franklin Templeton, DBS, Goldman Sachs, and BNY Mellon show the industry is strategically thinking about the viability of these funds. But with innovation comes exposure. While traditional MMFs live on secure, closed systems, tokenized funds interact with public or semi-public blockchains, smart contracts, and digital wallets. This shifts the cybersecurity threat model away from back-office fraud to…
[ad_1] Image source: Getty Images Stocks and Shares ISAs might well have been built for passive income. They are perfectly suited for taking extra savings from a day job and building wealth and income – entirely tax free! That’s not a minor point these days. Capital gains tax goes up to 24% now. Dividend taxes are a maximum of 39% too. Tax on work, like income taxes, can reach 45% and that’s without factoring in National Insurance contributions. For those of us without access to expensive tax lawyers of far-flung tax havens, the cost of getting your money to work…
[ad_1] Image source: Getty Images Last year, I watched helplessly as the International Consolidated Airlines Group (LSE: IAG) share price flew to the stars. Other investors might have hopped on board, but I felt I’d missed my chance. I prefer to buy beaten-down FTSE 100 stocks before they rebound rather than afterwards, because often the first leg of the recovery is the strongest. IAG, as it’s also known, plunged when Donald Trump announced his ‘liberation day’ tariffs on 2 April. That’s because the carrier has hefty exposure to the transatlantic flight trade via its British Airways subsidiary. When Trump announced a 90-day pause…
[ad_1] Image source: Getty Images In recent days, UK investors have been aggressively buying stock in Beyond Meat (NASDAQ: BYND). Believe it or not, this is the fourth most bought stock on AJ Bell’s platform over the last week. Should I follow the crowd and buy this growth stock for my portfolio? Let’s discuss. I was right about this stock in the past It’s been a long time since I covered this one. Over three years, in fact. The last time I covered it, in August 2022, it was trading for $33. At the time, I said it was very…
[ad_1] Image source: Getty Images The Barclays (LSE: BARC) share price has had a storming run. It’s up 58% over the last 12 months and a staggering 266% over five years. Those are impressive figures from a supposedly big and boring British blue-chip. It’s yet another reminder of how underrated FTSE 100 shares can be. And those numbers are before accounting for all the dividends paid over the same period. Existing investors will be thrilled, the rest of us kicking ourselves for missing out. Past performance isn’t a guide to the future, but there are still ways of judging where Barclays shares…