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Investors have plenty of ways to aim for a large second income. But I believe the best way to supplement my earnings with extra cash is by buying FTSE 100 shares.
Broadly speaking, Footsie-quoted shares tend to:
• Be mature, market-leading businesses, whose steady cash flows enable regular and reliable dividends.
• Have operations in multiple regions, which in turn spreads risk across markets and provides more consistent revenues and cash flows.
• Possess robust balance sheets, which can help them pay a decent and stable dividend even during economic downturns.
• Focus on offering large and growing dividends to attract investors.
A £4,440 passive income
As I say, this is the broad rule when it comes to investing in the FTSE 100. But dividend cuts can still happen that can unexpectedly whack investors’ passive income and cause share prices to slump.
This has been the…
