If I had known much earlier that investing regularly today could support me create a second source of income for tomorrow, I would have started much earlier.

I think it’s still possible to start this today. Let me explain how I would approach it.

Game rules

Let’s say I have a lump sum of £15k to invest today. I also intend to invest £250 a month from my salary. I am saving and investing every month anyway, so it is doable.

First I need to choose an investment vehicle. I think a Stocks and Shares ISA is the obvious choice as I wouldn’t have to pay tax on the dividends I receive. Dividends are key to building my fund.

Please note that tax treatment depends on each client’s individual circumstances and may change in the future. The content of this article is provided for informational purposes only. It is not intended to, and does not, constitute tax advice of any kind. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

The second thing is to make sure I’m picking the right stocks to have the best chance of maximizing my profits. I’ll be targeting the best dividend paying stocks. I’m looking for established companies with a good earnings history and solid future prospects. I think 5-10 stocks should be enough.

Let’s crunch some numbers. Investing £15k at once and adding £250 a month for 25 years, aiming for an 8% return, the magic of compounding would give me £347,859.

I would then take 6%, which would give me £20,871. That’s £401 per week.

There are risks to note, however. First, I have to remember that dividends are never guaranteed. I could end up with a lower rate of return, reducing my final pot. In addition, all stocks come with their own risks that I also have to consider.

One stock I would buy

If I were to implement this plan today, Foresight Solar Fund (LSE:FSFL) is the type of stock I would happily buy to maximise my profits.

As its name suggests, the company invests in solar assets, with operations in the UK, Spain and Australia.

The company’s assets generate immaculate electricity, which is then sold to energy companies. There is a huge push for immaculate energy and away from conventional fossil fuels. I think that will only get worse. Foresight could be in a great position to capitalize and deliver excellent returns to shareholders.

Foresight currently has a dividend yield of 8.8%, which is above my target of an 8% yield. The company has also raised its dividend for the past nine years in a row. However, I understand that past performance is not necessarily an indicator of future events.

On the bearish side, Foresight has a lot of debt on its balance sheet. This could make it harder to pay out in the future. A bigger concern for me is the difficulty of modern solar farms. The complexity of the regulations surrounding land for such farms, as well as the high expenses, make me wonder whether growth and consistent profits will be simple to achieve.

In summary, Foresight meets the criteria I would look for in a stock I would buy to build an additional source of income.