This well established and profitable tech stock has raised its expectations and could possibly have further room for share price growth. But would I buy?
How I would earn passive income for the cost of a takeout coffee each day Image source: Getty Images
Lockdown has been difficult for many people. But one small positive thing is it has enabled a lot of us to do things differently and make some positive changes. For example, during lockdown I have had more time than normal to work on my passive income ideas.
When things get back to normal, instead of spending a couple of pounds each day on an expensive coffee I don’t need, here’s how I will put that money into passive income ideas instead.
Should investors look towards value and cyclical equities as inflation fears grow? dailymail.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailymail.co.uk Daily Mail and Mail on Sunday newspapers.
Two passive income streams I use
More on: Image source: Getty Images.
Passive income is money one receives without working for it. Its popularity has grown, in part due to the increase in digital nomads seeking lifestyle independence. But the idea isn’t as daft as it might sound – all sorts of people have earned passive income for centuries, from landowners collecting rent to shareholders receiving dividends. Shares are a classic form of passive income provider. Here are two shares I hold as passive income streams.
The economics of passive income streams
I like tobacco shares to generate passive income for a specific reason. Industries that are young and growing often have high capital expenditure, research, or sales costs. That can mean that instead of distributing profits to shareholders, they need to plough them back into the business. By contrast, tobacco is a highly cash generative, mature industry. So instead of needing to put profits into building