![]() It is calculated as the dividend payment divided by the price of the share (or investment). The dividend yield is a good indicator of the ‘return’ on your investment, similar to the annual rate on a savings account. However, they are not guaranteed and many companies temporarily suspended their dividend payments during the pandemic. Best passive income ideas Dividends from investmentsĭividends are paid by companies to their shareholders and can provide a good passive income stream if you have available funds to invest. While all these categories have the potential to generate a substantial income, here’s some of our top suggestions for earning a passive income in the UK.
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