Usually, the investor focuses on the performance of the dividend of a specific action, trying to consider whether to buy or not. Instead, you can look at focusing on a specific group of shares in terms of the potential of passive income. For example, if someone had a pot worth 5,000 pounds and would like to spend it on a handful of high -performance options? Here’s how it can look.

Crossing the boundaries

I assume that £ 5,000 is divided between five different options from 1 thousand. Assigned to every idea. In filtering the best actions in FTSE 100It would include M & GIN Legal and general (LSE: LGGE), Phoenix groupIN Taylor Wimpey AND British American Tobacco. The average performance for this group of action would be 8.38%.

This means that over the following year, the sum of £ 5,000 can bring 419 pounds of dividend income. It is very respected and arduous to overcome, considering that this basket is the highest offense in the index. The only way to achieve increased efficiency would be to drop some stocks. However, this also increases the risk, because the money is less diverse between companies.

The average FTSE 100 efficiency is 3.41%, so it shows how energetic collection of shares can ensure an boost in income payment. However, there is still a need for caution. High yields can sometimes be risky if the price of shares has dropped rapidly. It can be a sign that something is wrong with business. Although the fall of stocks increases profitability, this can lead to the cut -off of the dividend to the action if the company really fights.

Reliable option

One choice in a group, which in my opinion is an option of sustainable income, is legal and general. Over the past year, shares have dropped by 2%, which means that high profitability is due to a price disaster.

In fact, the financial service company is doing well. All -year results, which appeared in March, showed that basic operational profits increased by 6% compared to the previous year to 1.62 billion GBP. In addition to the news about the redemption of shares worth 500 million pounds, shareholders were also awarded a 5% boost in dividend to action.

Looking to the future, I do not see significant problems for the company based on the business model. Has good results in the collection of insurance premiums and investment management fees. The stability of cash flows that this provides is good for income investors. Of course, the constant risk is that business clients withdraw their money in vast amounts. This reduces managed assets, and therefore fees earned for money.

I think that the investor could consider the inclusion of legal and general in the existing income portfolio or with this particular concept of five -handing.