Image source: Getty Images Interest rate cuts are coming, and the Big Four banks could be in for a challenging time. But while HSBC, Barclays, Lloyds, and NatWest navigate the treacherous waters of falling margins, a quieter revolution is unfolding in the FTSE 250. Here, nimble challenger banks such as OSB Group (LSE: OSB) and Metro Bank (LSE: MTRO) are plotting a different path forward. While they represent two very different investment theses, both offer compelling reasons to consider them as part of a diversified, income-focused portfolio in 2026. Why challenger banks? Here’s the uncomfortable truth for the Big Four:…
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Image source: Getty Images British investors are blessed with two excellent tax shelters, the Self-Invested Personal Pension (SIPP) and the ISA. The Stocks and Shares ISA may be the better known of the two, but the SIPP also lets portfolios grow in a tax-efficient environment. So is one better than the other? I’ve given up on asking ChatGPT to help me choose actual stocks to invest in as its answers are just too erratic and all-too-often inaccurate. And today, it confidently assured me that Rachel Reeves isn’t the UK’s chancellor, for example. And it’s made equally big howlers when talking…
Image source: Getty Images The London stock market is famed for its huge selection of top-quality dividend shares. And according to latest data, the rate of dividend growth in 2025 actually topped what forecasters were expecting. On a headline basis, dividends dropped 0.9% to £87.5bn, according to Computershare. However, this was due to exchange rates and lower special dividends, as companies instead prioritised share buybacks. Dividend cuts from telecoms and mining shares also pulled the number lower. On an underlying basis dividends from UK shares actually rose 3.6% to £84.7bn. This comfortably beat the predicted 2.5% increase. What’s predicted for…
Image source: Getty Images Buying and holding UK shares for the long term can be a brilliant way to build a second income for retirement. Given time, high-quality FTSE 100 and FTSE 250 stocks can deliver solid returns and generate a high, rising passive income stream. Investors don’t need a fortune to get started. Even £300 a month could eventually target a second income of more than £45,000 a year, given enough time. Long-term targets Let’s imagine an investor starts putting away £300 a month from age 30 until retirement at 67. We’ll assume three other things. They already have…
Image source: Getty Images Even after a barnstorming 2025, the FTSE 100 still looks cheap on many metrics. What unheralded stocks are lurking in the index? What brilliant bargains could lead the vanguard if the Footsie surges in 2026? I grabbed that ever eager-to-please invention, ChatGPT, to give me a few pointers. I asked it: “What are the FTSE 100 hidden gems for 2026?“ While ChatGPT did supply me with some food for thought, I’ll firstly point out that large language models are far from reliable for financial advice. This was conspicuously evident in its own answer… Its first suggestion…
Image source: Getty Images Building up a Stocks and Shares ISA to earn passive income from the stock market is something anyone can pursue in the UK. Inside these wonderful accounts, investors can grow wealth and receive income without worrying about paying tax. What’s more, you don’t have to be Scrooge McDuck to get started. Even a relatively small amount like £7,000 can do the trick. Here’s how. Dividend yields To generate £500 in passive income every year from £7,000, a dividend stock would have to yield just under 7.2%. Unfortunately, it’s not possible to get anywhere near that sort…
Image source: Getty Images As with any stock, the Rolls-Royce (LSE: RR) share price can go down as well as up. I thought that old truth is worth stating, as lately it’s only gone in one direction – like a stratosphere-bound rocket. Can it last? Rolls-Royce shares are up 1,200% over the last five years, turning £10,000 into a spectacular £130,000 and potentially transforming people’s retirements all on its own. I’d have expected its momentum to flag by now, but it’s up 110% over the last 12 months. It still managed to climb 7% in the last month. But surely…
Image source: Getty Images A common way to try to build passive income is to buy dividend shares. But dividends are never guaranteed – and even if they are paid, share price movements can also affect the overall return from a given investment. So, when looking for income stocks to buy for my portfolio, here are three things I try to bear in mind. Yield is a historic snapshot, not a guarantee When looking for income stocks to buy many investors pay close attention to a company’s dividend yield. But that is only a snapshot of what the company has…
Image source: Getty Images It’s been a stunning five years for the Barclays (LSE: BARC) share price, up 265% over that period. That would have turned a £10,000 investment into £36,500, with dividends on top. The obvious question is: can it keep flying at that speed? Like the rest of the banking sector, Barclays has benefited from higher inflation and interest rates, which have allowed it to widen the gap between what it pays savers and charges borrowers. In simple terms, it’s been able to push mortgage rates up a little more than savings rates, and profited from the difference.…
Image source: Getty Images I’m a firm believer that investing in quality FTSE stocks can vastly improve my chances of retiring early. But separating the wheat from the chaff is no easy task. Can ChatGPT do the leg work on my behalf? For a giggle, I asked it to identify one UK company that could help turn this dream into a reality. And the winner is… To be fair, the AI bot began by correctly stating that no single stock will guarantee early retirement. I’m not sure that’s revelatory but it does at least chime with our philosophy at The…