Image source: Getty Images A Stocks and Shares ISA allows investors to collect tax-free dividend income. And with the UK Budget rapidly approaching, thinking about this might be more important than ever. There are reports that the Chancellor is considering increasing dividend tax. Investors won’t know for sure for another 10 days, but it’s worth being prepared in any event. 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…
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News of a new CEO appointment sent the Diageo (LSE:DGE) share price up 7.5% on Monday (10 November) morning. But a change of leadership isn’t the only thing the company needs. Sir Dave Lewis has some impressive credentials, but a lot of the firm’s recent challenges have been to do with things beyond its control. So can investors expect the stock to rally? Same problems? The new CEO is coming into a difficult situation. Diageo’s been facing challenges from high inventory levels, weak consumer spending, and the rise of GLP-1 drugs. These are all interconnected, though they present varying degrees…
Image source: Getty Images When hunting for dividend stocks, most UK investors zoom in on the FTSE 100 and FTSE 250. After all, these are the largest businesses on the London Stock Exchange. And size can be a handy advantage in maintaining shareholder payouts. However, there’s a whole world of dividend opportunities to explore outside the FTSE 350. And among these lies FDM Group (LSE:FDM), which currently offers a staggering 14.7% yield. Its massive payout certainly caught my attention. So is this a stock investors should consider for their own passive income portfolios? A rough four years A quick glance…
Image source: Getty Images Despite the stock market reaching new record highs in 2025, there are still plenty of cheap stocks to capitalise on. And in the UK, many of these bargain-basement opportunities come paired with some pretty substantial yields. Perhaps a perfect example of this from my income portfolio is LondonMetric Property (LSE:LMP). Despite being on track to deliver double-digit net rental income growth, the commercial landlord continues to trade at dirt cheap multiples, with the price-to-earnings ratio sitting at just 11.4. And with management continuing to hike dividends for the 11th year in a row, the yield now…
Image source: Getty Images Across the FTSE 100, there’s a wide range of income stocks with substantial dividend yields. Among these is Mondi (LSE:MNDI) – a global supplier of sustainable packaging and paper products. Selling cardboard and other packaging materials is hardly the most exciting business model out there. But often it’s the boring businesses that make for terrific long-term income investments. And right now, this industry titan is offering a pretty big payout. So, should investors rush to buy this lucrative-looking opportunity? Or is this a hidden high-yield trap? Investigating the yield The yield offered by a stock can…
Image source: Getty Images Penny share Calnex Solutions (LSE: CLX) is one of the worst performers in my portfolio. Currently, I’m down about 50% (at 59p the stock is about 70% below its highs). Now, often with losers like this, I simply accept that I got it wrong and cut my losses (it can be depressing to stare at losing positions in a portfolio). However, in this case, I’m holding on because I’m not ruling out an explosive comeback. Why has this stock tanked? Calnex is a technology company that specialises in testing and measurement solutions for the telecoms industry.…
Image source: Getty Images If only picking the perfect passive income stock were as easy as asking an AI. Out of curiosity, I asked ChatGPT what makes a ‘perfect’ passive income stock. Its answer was relatively thorough. According to it, the ideal stock for reliable passive income is one that delivers steady, growing dividends while exposing investors to minimal capital risk. ChatGPT suggested that such a company would have dividends well-covered by earnings and cash flow, with a payout ratio below 70% to ensure sustainability. Personally, I’d say the payout ratio threshold should vary from sector to sector. It highlighted the importance of…
Image source: Getty Images Everyone knows buying the right penny stock at the right time can be like winning the lottery. But as with a quick flutter at the news agents on a Saturday morning, we know the odds are stacked firmly against winning the jackpot. This makes acquiring penny shares somewhat of a gamble, in my view. And when the odds are this low, it makes sense to act prudently and not bet the farm. That said, Agronomics (LSE:ANIC) is an interesting penny stock. Priced at 7p, it’s up 100% year to date but remains 78% below its 2021…
Image source: Getty Images I’m constantly looking for top-notch stocks to add to my passive income portfolio. And looking out across the entire FTSE 100, Legal & General Group (LSE:LGEN) currently stands out among the crowd. Why? Because it currently has the highest yield in the index at 8.9%! Other income investors have also seemingly taken notice, with Legal & General shares being among the top 10 buys in the last month, according to AJ Bell. And it’s not difficult to see why. With just 4,655 shares, investors can earn £1,000 each year in dividends at the current level of…
Image source: Getty Images Passive income could be your ticket to a retirement beyond the measly State Pension amount of £231. With compounding on your side, even modest ISA savings, built steadily over time, could generate a reliable income to top up your retirement income. Crunching the numbers If you want £924 a month in today’s money when you retire, inflation means you’ll need more than that in the future. Assuming 3% annual inflation, in 25 years the same purchasing power would require around £23,200 a year. Using the 4% withdrawal rule, a pension pot of roughly £580,000 would be…