June 24, 2022
  • June 24, 2022

5 passive income ideas for £ 100 per month

By on November 24, 2021 0


There isn’t a lot in life that offers real passive income. The stock market is arguably an exception. At the very least, I think it has the potential to deliver the best return for the effort involved.

Plus, it doesn’t require you to have a lot of money to get started. In fact, I think an investor could build a solid dividend paying equity portfolio for just £ 100 per month.

5 actions to try to create wealth after 50 years

Markets around the world are reeling from the coronavirus pandemic … and with so many large companies trading at prices that appear to be ‘discount containers’, now may be the time for savvy investors to close. potential business.

But whether you are a new investor or a seasoned professional, deciding which stocks to add to your shopping list can be a daunting prospect during an unprecedented time.

Fortunately, the Motley Fool UK analyst team has shortlisted five companies that they believe STILL offer significant long-term growth prospects despite global upheavals …

We’re sharing the names in a special FREE investment report that you can download today. And if you’re 50 or older, we think these stocks could be a good fit for any well-diversified portfolio.

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Passive Income Winners

Assuming the cash is on hand, the key is to buy stocks that should, barring a “black swan” event, continue to pay dividends regardless of the weather. Utilities are a prime example, so my first choice is the electricity supplier national grid. In charge of much of the UK’s energy-related infrastructure, it currently brings in 5.1%.

Large Tritax Box stocks seem expensive. Nonetheless, demand for the type of warehouse space this Real Estate Investment Trust (REIT) owns is expected to continue for many years to come. After all, the popularity of online shopping is only expected to increase. So I would start building a position with the intention of adding more in times of general market unrest. The yield is 2.8%

E-commerce company IG Group remains one of my favorite listed companies. While the threat of increased regulation is never far away, the company’s exceptional levels of free cash flow should ensure that there is no risk that the dividend will be cut anytime soon. It is also a potential hedge if the markets become volatile. The IG is currently reporting 5.7%.

Boasting vivid lists of recognizable brands that shoppers tend to buy out of habit, Britvic and Unilever stocks – and their respective returns of 2.7% and 3.7% – also get my votes. Both have near-perfect records of growing dividends over the years.

This is what i could get

Based on their dividend forecast at the time of writing (and assuming I invest equal amounts in each), the five stocks above generate an average return of 4%. In other words, I would receive £ 4 in dividends for every £ 100 invested. That’s a lot more than what I would get from even the best Cash ISA in the neighborhood.

Are there ways to generate more passive income from UK stocks? Absoutely. However, one has to wonder how secure are the payments of cyclical companies involved, for example, in banking, housing construction and mining.

Of course, there is no guarantee that even the businesses I have selected will still be able to return money to their owners. However, I made sure to diversify the sectors. So even if one encounters a setback, the income level should still be decent.

Patience required

Regardless of which stocks are selected, one thing worth highlighting is the time it takes to generate a significant stream of passive income. Initially, the money received will be negligible because the amount invested is small. This may not be suitable for those with itchy trigger fingers and limited patience.

There are ways to speed things up. Obviously, storing over £ 100 each month is an option. Saving on fees by using a stockbroker’s regular investment program will also help.

If the income is not needed right now, an even better solution is to reinvest the dividends. This stimulates capital accumulation through funding and could give me an even better passive income stream to tap into when I really want to get up.

5 actions to try to create wealth after 50 years

Markets around the world are reeling from the coronavirus pandemic …

And with so many large companies still trading at prices that appear to be “containers of discounts,” now may be the time for savvy investors to close potential deals.

But whether you are a new investor or a seasoned professional, deciding which stocks to add to your shopping list can be a daunting prospect during an unprecedented time.

Luckily, The Motley Fool is here to help: Our UK CIO and his team of analysts have shortlisted five companies they believe STILL offer significant long-term growth prospects despite the global foreclosure …

You see, here at The Motley Fool, we don’t think over-trading is the right route to financial freedom in retirement; instead, we advocate buying and owning (AT LEAST three to five years) at least 15 quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of these five companies in a special investment report that you can download today for FREE. If you’re 50 or older, we think these stocks could be suitable for any well-diversified portfolio, and you may want to consider taking a position in the five immediately.

Click here to claim your free copy of this special investment report now!


Paul Summers owns shares in the IG group. The Motley Fool UK recommended Britvic, Tritax Big Box REIT and Unilever. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of ideas makes us better investors.