Image source: Getty Images Rolls-Royce (LSE: RR.) shares have been a phenomenal investment in recent years. Recently, however, they’ve experienced a pullback – currently they’re trading about 12% below their highs. Is now the time for those who don’t own Rolls to consider buying? Let’s discuss. Firing on all cylinders It’s no secret that Rolls-Royce has momentum today. Thanks to a brilliant transformation by CEO Tufin Erginbilgiç, the company is firing on all cylinders. In mid-November, for example, the company told investors that it’s expecting underlying operating profit of between £3.1bn and £3.2bn and free cash flow of between £3.0bn…
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Image source: Getty Images UK stocks remain my favourite way of building a long-term passive income, because they combine share price growth potential with generous dividends as well. I’m looking to build a big enough portfolio to effectively double what I get from the State Pension, by targeting a spread of dividend-paying FTSE 100 shares. The full new State Pension is set to hit £12,548 a year from April 2026, after the planned 4.8% triple lock increase. So how much would an investor need in their Stocks and Shares ISA or Self-Invested Personal Pension (SIPP) to double that income? Building…
Image source: Getty Images One benefit of ageing is that my family’s passive income keeps growing. Though my wife and I both work, we boost our earnings with non-work income. In time, this extra income will eventually replace our salaries, allowing us to retire in style. But where did it all come from? Making money work Of course, collecting unearned income isn’t a breeze. Making money involves time, effort, and upfront work. Also, lifelong learning about capital markets has helped me make better financial decisions. After creating a broad financial plan, I then had to manage and nurture it. My…
Image source: Getty Images Taylor Wimpey (LSE: TW.) shares are trading close to their lowest price for over a decade. The near 13-year low share price is a fall of 55% from a recent high. The shares have even been flirting with a price more akin to penny stocks, dipping to 97p in the month of November. Yet the fortunes for the housebuilder could be quietly turning around. I think there’s a fair chance of Taylor Wimpey shares turning the corner. Here are the three reasons why. Good news The first bit of good cheer comes by way of the…
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 feasible…
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 won’t.…
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 FTSE…
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 2022…
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 35%…
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 to…