For investors on the hunt for quality income stocks, I reckon British American Tobacco (LSE: BATS) is worth investigating. A subpar performance… Granted, it hasn’t posted the greatest performance in recent times. The last 12 months have seen 21.1% shaved off its share price. Zooming out, in the last five years it’s down 22%. It’s no secret that the tobacco industry is under immense scrutiny. And this threat will continue, with governments from a host of nations tightening legislation. For example, anyone aged 15 or younger in 2024 will never be able to legally buy cigarettes under a recent U ..read more

There’s not much to dislike about a company growing revenues at 27% and earnings per share at 117%. But Meta Platforms (NASDAQ:META) saw its share price fall after its Q1 earnings report. The company’s results for the first three months of 2024 came in ahead of expectations. But having increased by 137% over the last 12 months, a more tepid outlook for Q2 caused the stock to pull back. Strong earnings If Meta’s report had a weak point – and I think it did – it was the metaverse segment. Reality Labs reported lower revenues and managed to burn through another $3.8bn between January and March ..read more

FTSE 250 defence firm QinetiQ (LSE: QQ) looks poised for further growth as the world becomes more dangerous. There appears no end in sight for the Russia-Ukraine conflict. Tensions in the Middle East have risen after Iran directly attacked Israel for the first time. And the US believes China’s President Xi Jinping ordered his military to be ready to invade Taiwan by 2027. They say hindsight is a wonderful thing, but as an investor, foresight is better. Since Russia invaded Ukraine on 24 February 2022, many first-tier FTSE 100 defence stocks have rocketed in value. As the global security situa ..read more

I owned Lloyds (LSE: LLOY) shares long before I had even heard of Phoenix Group Holdings (LSE: PHNX). Like many people, I was unaware the insurance firm operated the powerhouse Standard Life and SunLife brands, among others. Both stocks were selected using my standard stock screening process to identify new shares to buy. This looks at business growth potential, share valuation, and dividend yield. The same process recently flagged that I should sell my Lloyds stock and buy more Phoenix Group shares, which I did. Business growth potential Lloyds’ 2023 results showed statutory profit after tax ..read more

When looking to make extra income from dividend stocks, many novice investors just look for the highest yield.  It makes sense right? Why invest in a stock with a 4% dividend yield if I can choose one offering 8%? However, there’s a lot more to it than that. I’ve found I often get better returns from reliable stocks with lower yields than those with high payouts. How can that be? It’s because dividend payments aren’t guaranteed – companies can reduce them (or cut them completely) as they please. And the higher the yield, the more chance of that happening if earnings decline. Another thin ..read more

Even with very little savings, I aim to retire in 25 years with a decent passive income stream. In addition to my pension, it can help me live a comfortable and rewarding life well into old age.  But building a second income stream that doesn’t require daily work is no easy feat. I’ve found one possible way to achieve this is through slow and steady investments in stocks that pay high dividends. I think of dividends like a reward I get every for my committed investment – a present to say thanks. Since it took time and effort to earn the money I invested, it deserves some return. But I ha ..read more

For contrarian investors, the very best shares to buy are often those that have performed the worst lately. Buying stocks when everybody hates them means gaining entry at a reduced price and, with luck, benefiting when the cycle swings back in their favour. That’s the theory, and a seductive one. It doesn’t always work in practice though. Two FTSE 100 stocks stand out for their dismal performance: luxury fashion house Burberry Group (LSE: BRBY) and financial advisory group St James’s Place (LSE: STJ). Their shares crashed a thunderous 55.37% and 63.56%, respectively, over the last 12 months ..read more

Until this week, the record high for the FTSE 100 was 8,047.06 points, recorded on 16 February 2023. But earlier this week, the FTSE broke through this barrier. Footsie fired up On Tuesday, the FTSE hit a new high of 8,076.52, before retreating. At this point, the index stood 11.9% above its 52-week low of 7,215.76 on 18 August 2023. What’s more, in a recent reversal of a long-term trend, the Footsie is beating the S&P 500. The UK index is up 1.6% in a month, versus a 3% drop for the US index. Still, the FTSE trails its US cousin over longer periods, with the S&P 500 leaping 72.1% ove ..read more

It’s spring, and investors’ thoughts are turning to passive income. And what better way than with our new ISA contribution limit of £20,000? We could go for a Cash ISA, and some of those pay around 5% these days. And it’s guaranteed, at least for the duration of the deal. But interest can’t stay that high when the Bank of England starts cutting base rates, can it? Risk and reward As with so many things in life, we have to balance risk and reward. Over the long term, the UK stock market has beaten other forms of investment. But it’s had bad spells, like the past decade. There are ways we can r ..read more

On 23 April, FTSE 100 stocks rallied to send the UK’s premier index to a record close for the second day running. It finished at 8,044 points. Mind you, it’s been a long time coming. The Footsie was last above the 8,000 milestone in February 2023! Still, there are opportunities, in my eyes. Here are two FTSE 100 shares I’d buy today with spare cash sitting idle. Attractive business model Many new investors focus on the strength of a company’s technology, which is understandable. After all, a technological edge is certainly not a bad thing. But it’s not everything. A company can have the best ..read more