ISA shares and shares remain one of the most economical ways of investing by millions of British. The goal that many of us have is to buy dividend shares that can contribute to passive income. Of course, it is not as simple as buying stocks, and then sitting and relaxing. Here are some key points to remember.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice. Readers are responsible for implementing their own diligence and obtaining professional advice before making investment decisions.

Various considerations

It should be noted that the maximum amount that can be invested in ISA annually is 20,000 pounds. Therefore, if the investor had a vast lump sum, it may not be possible to exploit all this in one year. It is more likely that investing funds every month and gradually building the size of the wallet to its desired level.

When discussing time, it is also essential to consider that generating 10,000 pounds a year of income would logically require an ISA size over 100,000 pounds. That is why it is a game of patience, taking into account the time frame. This is not a pious system!

Then the pressure is placed on the offer of crops. Of course, the investor could buy FTSE 100 Tracking fund that pays dividends. Currently, it would bring 3.16%. Alternatively, activity in choosing inventory can cause someone to gain performance in the range of 6% -8%, holding a dozen or so shares. I think it is realistic and the portfolio still uses diversification.

I am looking for wrestling

In one supply to consider it is Monony group (LSE: Mony). The company is a British fintech specializing in comparative services. Basically, it helps customers such as insurance and banking products. He earns money for charging fees and commissions from financial companies to customer instructions and switching.

Over the past year, the price of shares has dropped, but a rather modest 6%, with the current dividend performance of 6.28%. I think the dividend is balanced for several reasons. First, dividend policy states that it is “He strives to pay annual dividends exceeding 55% of the group’s annual profits after taxation.” This is a reference to investors, which means that it is clear when to expect dividends and a thicker amount.

In addition, the company has good cash production, taking into account the nature of its activity. It also has a fairly low model, because there are very restricted results in which the company is exposed to any shocks or significant losses. As a result, it makes the chances of reduced dividend quite low.

Looking to the future, the management team invests more in automation. This should not only assist reduce costs for the future, but also make the company less sensitive to wage inflation. Ultimately, this should assist in supporting profitability in the long run.

As a risk, activity is exposed to changes in financial regulations, marketing rules or competition. Each of these factors can lower margins. However, based on the current situation, I think investors are shares.

Talking numbers

If someone had an average dividend performance of 7% and invested 500 pounds per month in ISA, this can combine the value of the portfolio of 143 346 GBP after 14 years. The following year, this may generate just over 10,000 GBP passive income.