Image source: Getty Images It’s almost hard to believe that Amazon (NASDAQ:AMZN) stock has underperformed the S&P 500 over the past five years. Yet, it’s true, as shares of the tech juggernaut have only returned about 50% versus roughly a doubling for the blue-chip US index. Looking ahead, however, that might be about to flip. Here are three things that might support a sustained rally in Amazon stock. Huge efficiency drive Let’s start with the most topical. Today (28 October), the company announced that it will cut 14,000 roles from its corporate workforce. Other sources have said it could end…
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Image source: Getty Images Building a passive income from a portfolio of FTSE 100 and FTSE 250 shares is a brilliant way to prepare for retirement. Doing it inside a Stocks and Shares ISA is even better, as all that income will be tax-free. I always pick my own stocks, but just for fun, I decided to ask artificial intelligence to do it for me, via ChatGPT. I asked it to list five UK companies to form the backbone of a balanced portfolio, balacing high yields with growth potential. Dividends and growth It started with insurer Phoenix Group Holdings. I…
Image source: Getty Images Two FTSE 250 names that have roughly doubled over the last six months are Spectris (LSE: SXS) and Goodwin (LSE: GDWN). While both stocks have rallied, the drivers of each have been quite different, for two very different companies. What’s been happening Spectris is a precision measurement company with portfolio brands including HBK and Malvern Panalytical. The company’s valuation has surged after an all-cash takeover bid from an entity associated with KKR, which the board of directors and shareholders have backed. The final price of £41.75 per share is almost double the pre-bid 6 June closing…
Image source: Getty Images A Stocks and Shares ISA is a brilliant way to build long-term retirement wealth. It’s simple to understand, flexible, and buying and selling shares via an online platform is pretty straightforward once an investor has set one up. The tax advantages are massive: all growth and dividends are free from HMRC and withdrawals are completely tax-free. 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…
Image source: Getty Images Millions of us invest for a second income. This typically means building a portfolio over time — ideally within a Stocks and Shares ISA wrapper — and then taking a second income in the form of dividends when that desired figure has been reached. One stock that I like for both its dividend and value is Arbuthnot Banking Group (LSE:ARBB). It’s an AIM-listed company that, unlike its FTSE 100 peers, hasn’t surged over the past two years. In fact, the stock is pretty flat over three years, and during that period, dividend payments have grown steadily…
Image source: Getty Images Last Wednesday (24 October), I bought Taylor Wimpey (LSE: TW) shares. There’s nothing unusual about that. I bought the FTSE 250 housebuilder again on 5 September. I bought the shares twice in September 2023 as well, and twice more that November. By automatically reinvesting all of my dividends, I’ve acquired its shares on another four occasions, and have no plans to stop. Massive dividend income It might seem a strange obsession, because the share price has had a rotten run. It’s down almost 30% over the past year. At today’s price of 110p, it’s roughly half…
Image source: Getty Images The average monthly mortgage payment on a UK house is currently £1,253. People tend to pay this from their primary source of income. This makes sense, but it’s possible for some (or all) of this to be contributed from passive income sources, such as dividend stocks. Here’s the breakdown of how it could potentially work for an investor. Discussing important factors An investor would need to have a portfolio of income stocks, so that on average, the dividend payments would amount to the total needed. This means that over time, the person would need to regularly invest…
Image source: Getty Images HSBC Holdings (LSE: HSBA) posted a 14% fall in third-quarter pre-tax profits this morning (28 October) but the share price jumped 3% in early trading. The stock had previously fallen back a bit in October in anticipation. A $1.1bn (£824m) provision for costs related to Ponzi scheme perpetrator Bernie Madoff did some damage. And a further $1.4bn in legal provisions didn’t help. It all means profit before tax for the quarter came in at $7.29bn, below estimates for $7.65bn. Another bank crisis We’ve just had the car loan mis-selling case that hit Lloyds Banking Group among…
Image source: Getty Images FTSE 100 stocks can go from heroes to zeros fast. Quality companies tend to claw their way back though, given time. That’s why at The Motley Fool we urge readers to invest with a long-term view. Income-paying UK blue-chips also offer one major consolation in quiet periods: investors can collect and reinvest regular dividends while they wait for the next burst of share price excitement. The GSK share price has struggled I took that view when I added pharmaceutical stock GSK (LSE: GSK) to my Self-Invested Personal Pension (SIPP) in March 2024. When I began writing for…
Image source: Getty Images This year has proved once again just how volatile FTSE 100 mining stocks can be. Fresnillo (LSE:FRES) has slumped 23% in the space of a fortnight, yet is still up more than 200% since the start of January. The recent reversal is due to a sharp pullback in the price of both gold and silver. The former has dipped below $4,000 an ounce, while silver is now at $45 (down from $53 a couple of weeks ago). With Fresnillo producing both precious metals, investors have been quick to hit the Sell button. But has this just…