Here’s how I’d invest £20k in the best shares now to make a passive income

first_img Our 6 ‘Best Buys Now’ Shares Peter Stephens | Tuesday, 29th December, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Here’s how I’d invest £20k in the best shares now to make a passive income “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Deciding which companies are among the best shares to buy right now to make a passive income is clearly subjective. However, they’re likely to include businesses with dividends that are affordable due to their solid financial position. They’ll also be companies offering impressive dividend growth rates over the coming years.Furthermore, they’re likely to be priced at attractive levels that provide scope for capital returns, alongside an income, over the long run. With many UK shares currently falling into those categories, it’s possible to make a worthwhile income with £20k today.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The best shares are likely to offer a resilient passive incomeEven though many stocks offer high levels of passive income, the best shares to buy now are likely to have reliable income prospects. In other words, their high yields aren’t based on a quick return to profitability in 2021. Nor are they required to borrow to make up a shortfall when paying dividends.By contrast, they’re likely to have dividend cover of more than one. This means that net profit is higher than dividend payouts. Furthermore, they’re almost certain to have a modest debt-to-equity ratio.This doesn’t put them in a challenging financial position should sales and/or profitability come under pressure in the short run. Given the threats facing the UK economy at the present time, a resilient passive income may be more desirable than it has been for many years.Dividend growth opportunitiesThe best shares to buy for a passive income today may also offer improving dividend prospects. In fact, it may be worth sacrificing a high yield for a company that can grow dividends at a fast pace. Over the long run, their total income returns may be significantly greater versus a high-yielding share with slow dividend growth potential.Clearly, identifying dividend growth prospects can be challenging. However, businesses with sound strategies, a competitive advantage and a long track record of growth may be more likely to deliver rising shareholder payouts. Over time, they may become more popular among investors in a low interest rate environment. Especially where passive income opportunities are relatively scarce.Value for moneyThe best shares of today are also likely to trade at attractive price levels given their financial strength and growth potential. This may not necessarily mean they’re cheap. They may be priced at higher levels than their peers. But they could still offer good value for money based on their higher quality from a business perspective.Investing £20,000 today in dividend shares may produce an income that doesn’t fully replace an entire wage. However, buying the best shares could lead to impressive returns in the long run. Over time, an investor may be able to enjoy greater financial freedom through a reliable and growing passive income. Simply click below to discover how you can take advantage of this. Image source: Getty Images. See all posts by Peter Stephenslast_img

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