Forget buy-to-let, Cash ISAs and Premium Bonds. I’d make a passive income with UK shares

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Forget buy-to-let, Cash ISAs and Premium Bonds. I’d make a passive income with UK shares “This Stock Could Be Like Buying Amazon in 1997” Peter Stephens | Saturday, 3rd October, 2020 Our 6 ‘Best Buys Now’ Shares Making a passive income with UK shares may be viewed as a risky strategy in the short run. Other assets such as Premium Bonds and Cash ISAs carry far less risk. Meanwhile, rising property prices may tempt some investors to engage in buy-to-let investing.However, over the long run, the returns from British stocks could make them a more attractive income investment. By purchasing a selection of high-quality businesses with affordable dividends today, you could build a resilient income stream for the long run.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Making a passive income in 2020This year has been a tough period for any investor who’s seeking to make a passive income. Low interest rates mean Cash ISAs now provide a very low income return compared to their historic levels. Meanwhile, Premium Bond prizes are now at relatively low levels for the same reason. This means investors would need to have a vast amount of capital held in cash or bonds to make even a modest income each month.Similarly, the net income available from buy-to-let property may be less impressive than many investors realise. High house prices mean yields across many parts of the UK currently stand at low levels. Also, rising taxes on second homes over recent years could mean the net return available to investors is significantly lower than the gross return. In other words, once tax has been paid, the passive income left over may be relatively disappointing.Buying UK shares for the long runOf course, investors in UK shares have also had a troubled year when it comes to making a passive income. Some companies have cut their dividend payouts, while others could do so in the coming months due to an ongoing uncertain economic outlook. Moreover, risks such as coronavirus and Brexit could lead to paper losses for investors in the short run that negatively impact on their portfolio’s performance.However, a wide range of British stocks continue to pay attractive dividends. Their lower prices after the market crash mean their yields are relatively high. As such, the difference in returns between them and other assets such as Cash ISAs, Premium Bonds and buy-to-let properties is relatively wide.Through buying a diverse range of UK shares today, you could obtain a growing passive income in the long run. Many businesses have solid balance sheets. That can mean they have a high chance of surviving what could be an extended period of weak economic growth.Furthermore, their wide economic moats may also mean they can improve their market positions to produce higher profit growth and rising dividends. Over time, their growing shareholder payouts could provide you with a worthwhile income that’s ahead of the returns on offer from other popular assets. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. Simply click below to discover how you can take advantage of this. See all posts by Peter Stephens Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.last_img read more