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Phoenix Group Holdings (LSE: PHNX) is one of my top candidates for generating long-term passive income.
And though its share price has gained nearly 20% in the past 12 months, it still has a forecast dividend yield of 8.4% for the current year. That’s something that could contribute to long-term returns from the FTSE 100 — which have averaged an annual 6.9% over the past 20 years.
But before I work out the income we might get from it, I need to look at the company itself.
Insurance pros and cons
Phoenix is in the insurance sector. Specifically, it specialises in acquiring and managing closed funds, like life and pension funds.
On the one hand, I think that should make it a bit safer than companies operating in riskier insurance categories. But on the other, it can provide a limit on future business growth. And Phoenix has been looking at ways to expand its business…
