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Investing for company dividends is by far my favourite way to try to earn some long-term passive income.
Right now, there aren’t any bigger FTSE 100 ones on offer than the forecast 10.85% dividend yield from Phoenix Group Holdings (LSE: PHNX). That could mean £2,170 in my pocket this year if I put an ISA allowance of £20k into the stock.
But, attractive though a shiny dividend yield might be, there’s always another side to the coin. The share price is down 30% in the past five years. So the total return has been lower.
Buying opportunity
Still, for those of us who want the dividend income and don’t plan to sell our shares for at least another decade, share price weakness might not be a bad thing.
If it’s only a short-term dip, it can even be a bonus. That’s because we could bag more shares for the same money now, and lock in those big yields.
But, how do we…
