Connect with us

International

My goal is to make 45,000 passive income with UK stocks and never work again!

Published

on

 


Image Source: Getty Images

Investing in UK stocks may be one of the best ways to build passive income. At least I think so. why? That’s because FTSE 100 has some of the highest yielding dividend stocks in the world.

Despite the turmoil of the pandemic, the index is still expected to return 4.1% in 2022, well above the S&P 500’s 1.37%.

Dividends can be boring compared to the excitement of explosive share price opportunities. But in the long run they can be a huge source of recurring income. Take Warren Buffett’s investment in Coca-Cola as an example. In 2021, he earned $672 million from dividends alone. After decades of increasing dividends, that equates to a recurring 52% annual return on his first $1.3 billion investment 34 years ago.

With that in mind, let’s take a look at how you can harness the power of dividends and compound yields to eventually say goodbye to your day-to-day work.

Become a millionaire with UK stocks

On average, when dividends are factored in, the FTSE 100 generated an annual return of around 8%. So, if you invest 10,000 lump sums into a low-cost tracker fund today, you can expect to have around 10,800 a year, about 400 of which come from dividends.

Since the stock market is a volatile place, such performance is clearly not guaranteed. And you may end up earning less or losing money. But let’s assume that the historical average will continue to repeat in the near future. Based on this assumption, compounding 8% over 34 years, my portfolio would be worth just over 136,900.

Not bad. But definitely not enough to retire. And it certainly isn’t enough to generate 5-digit passive income. But if you keep investing little by little every month, it starts to get interesting. With a relatively small monthly capital investment of 500, the UK stock portfolio of the same period ventured into the millionaire realm of 1,124,000!

45,000 passive income generation

Assuming a dividend yield of 4.1% is maintained, the 1.12 million portfolio I envisioned would yield 46,084 passive income per year. If you build a national pension on top of that, it seems like a pretty comfortable retirement.

Obviously, if inflation is working, such a portfolio will lose value in the future in terms of consumer spending power. And, as we’ve seen recently, stock markets tend to crash from time to time as companies withstand economic headwinds.

Conflicts inevitably happen again at some point. Many UK stocks will undoubtedly reduce, suspend or even cancel their dividend payments in such a scenario. However, you can mitigate the impact of such events by diversifying your portfolio. And by having the right amount of cash, you can withstand this temporary stock market downturn.

Sources

1/ https://Google.com/

2/ https://www.fool.co.uk/2022/06/26/im-aiming-to-make-a-45000-passive-income-with-uk-shares-and-never-work-again/

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]