At some distance, the British still prefer to keep cash because of passive income than to place money in actions. To prove my point of view, the latest data has shown that 7.9 million adults currently have ISA cash, more than twice as much as the number of ISA shares and shares (3.8 million).

Given the augment in interest rates after 2021, it is not a shock to see that cash accounts have gained popularity. But because the Bank of England has lowered credit feet, continuing the priorities of savings before investing on the stock exchange can be a costly mistake.

Better return

Investors must balance the risk and prizes when making decisions where to put cash. And there is no proper or bad answer, because it depends on the investment goals of each person and risk tolerance.

But I prefer to place a lion part of my capital in payments paying dividends. By investing in many companies, I can reduce the more risky nature of investing in shares compared to saving, and chase a mighty return without putting money in too much danger.

Even if the rates remain unchanged at the level of 4%, the highest passive income, which is offered from the campaign in Great Britain, make the stock market invest for me “lack”.

Seven dividend stars

Here is a mini-portfolio of seven investors in Great Britain, which investors may consider placing free cash:

The average dividend performance in these actions is 7.1%, i.e. triple The average interest rate of 2.3%, which currently enjoy saving. Dividends are not guaranteed, but assuming that these companies meet the brokers’ forecasts – and can also print an average of a 3% augment in stock price – I could enjoy the total annual shareholder reimbursement north of 10%.

This mini portfolio, spread over 73 different companies, can facilitate protect investors from regional, industry or company. Chelverton UK Dividend Trust is particularly effective in providing this diversification.

The goal of trust is “To ensure high and growing income thanks to investments at a distance to companies with low capitalization only except for the largest 100 shares in Great Britain“FTSE 100 Actions have a greater risk, but also provide the potential of excellent prizes.

In addition, with an investment in 66 different companies in 20 different sectors, in my opinion the risk is still quite well distributed. The Chelverton record from 14 plain years of dividend growth illustrates this immunity.

My plan

I am not saying that investors should consider completely avoiding cash accounts. I keep money for savings myself to diversify my wider portfolio and provide access to emergency cash.

But for me, the best way to direct the life of passive income is to place most of my free capital in dividend shares.