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Buying dividend shares is one way to try and earn passive income. Sometimes, FTSE 100 income shares like Vodafone and Imperial Brands get a lot of attention from investors for their dividend potential.
But there are plenty of FTSE 250 shares that offer passive income potential too. Here is one I would buy now if I had spare cash and wanted to target an extra £100 in income each year.
Lots of businesses, one share
Specifically, the FTSE 250 business I am eyeing is an investment trust.
Investment trusts typically buy lots of different shares themselves. So by buying a share in one, I am effectively getting a form of diversification. I would still spread my portfolio across more than one share, but I do like the fact that owning shares in an investment trust can help me diversify.
The FTSE 250 share I am eyeing is City of London Investment Trust (LSE: CTY). Its portfolio is focused on blue-chip British…
