Image source: Getty Images In my opinion, the ideal passive income stock should deliver steadily increasing above-average dividend payments. Fortunately, those looking to boost their earnings have a wide range of stocks to choose from. My personal favourite is Legal & General (LSE:LGEN). Why? Its dividend was last cut during the 2009 global financial crisis, maintained during the pandemic, and is now expected to rise by 2% a year from 2025-2027. If the directors keep to their pledge it will be (in cash terms) nearly six times higher in 2027 than in 2009. Based on amounts paid over the past…
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Image source: Getty Images I’ve been writing for The Motley Fool for 17 years or more but in all that time I’ve never once considered buying British American Tobacco (LSE: BATS) shares. Am I mad? I’ve both read and written countless pieces praising it as one of the most reliable dividend and growth machines on the FTSE 100. Yet early on I drew a line. Tobacco was a bad thing, so I wouldn’t buy cigarette makers. I never preached about it. I just didn’t want to buy a company whose core business kills people. I wouldn’t call myself an ethical investor. I hold…
Image source: Getty Images Pershing Square is a FTSE 100 investment trust that offers exposure to the successful stock-picking strategies of Bill Ackman’s New York-based hedge fund. This makes it a very rare Footsie stock. Outspoken billionaire Ackman went viral recently after telling younger men to use the line “May I meet you?” to initiate conversations with women. This spawned a digital avalanche of memes (many not as polite as the question itself). While the quality of Ackman’s dating advice is up for debate, his investing record certainly isn’t. You don’t build a net worth of $9.3bn without skill. For…
Image source: Getty Images It has been a strong year so far for many UK stocks. The FTSE 100 has had a storming 2025 so far, for example. It is up 18% since the start of the year and has repeatedly set new all-time highs along the way. The FTSE 250 is up by a more modest 7%, while the FTSE All-Share has moved up 16%. Could things keep going well – and perhaps continue that way after next month, once 2025 gives way to 2026? A strong market amid a mixed business environment I think that there could, potentially,…
Image source: Getty Images Does the long-term nature of investing in a SIPP mean compounding dividends becomes even more attractive? That depends on the strategy someone takes when it comes to investing their SIPP. For a lot of SIPP investors, though, the idea of dividends building upon dividends for years or even decades is attractive. With that in mind, here are three high-yield shares I think an investor ought to consider for their SIPP in the coming month. M&G With its 7.4% dividend yield, FTSE 100 asset manager M&G (LSE: MNG) is not as lucrative as it has been at…
Image source: Getty Images I set aside a small corner of my portfolio for punts and penny stocks. I call them ‘moonshots’. Unsurprisingly, the performance of this handful of speculative shares diverges wildly. For example, one (Joby Aviation) is up more than 200% since I first invested at $4, while another — DP Poland (LSE:DPP) — has dropped 25% since I bought it at 10p. DP Poland’s a little disappointing. This is the Manchester-based operator of Domino’s Pizza stores across Poland and Croatia. The penny stock is down 70% over a decade, but up 80% in six years. So it’s…
Image source: Getty Images Like bright yellow sale stickers in shops, shares with high dividend yields tend to catch the eye. ITV (LSE:ITV) is one from the FTSE 250 that always sticks out to me. Perhaps it’s nostalgia, as I’m old enough to remember classics like Heartbeat and A Touch of Frost. As a kid, I would often stay over at my grandparents on a Saturday night, when the likes of Gladiators and Stars in Their Eyes would be on the telly on channel three (ie, ITV). All that has changed, of course. If I showed my daughter (who is…
Image source: Getty Images Tesco (LSE:TSCO) hit a milestone earlier this year when its shares surpassed the price they were at prior to the 2014 accounting scandal. And while the road back has been long and winding, the FTSE 100 stock has taken a steep climb upwards in the past three years. In fact, add in dividends, and the three-year return easily exceeds 100%. After this impressive jump, the question now is: what about the dividend prospects over the next couple of years? The forecasts Looking at the latest forecasts, things appear quite promising for shareholders. For the current fiscal…
Image source: Getty Images Warren Buffett’s investment criteria are simple in theory. They involve finding shares in companies with strong future prospects trading at reasonable prices. I tried asking ChatGPT for shares that fit this description right now. And, along with some familiar names, it listed a really interesting FTSE 100 stock I haven’t looked at before. The usual suspects At the top of the list were Occidental Petroleum, Constellation Brands, and Domino’s Pizza. Solid choices, but no surprises – Buffett’s investment vehicle Berkshire Hathaway bought all three in Q3. Further down though, one name stood out to me. It…
Image source: Getty Images Chancellor Rachel Reeves has just cut the annual Cash ISA allowance. Starting April 2027, it drops from £20,000 per year to £12,000. But we’re OK, we Stocks and Shares ISA investors, right? I see reasons we shouldn’t be complacent — and should make the most of the tax-free benefits while we can. 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 not intended to be, neither does it constitute, any form…