3 UK shares I own for easy passive income
One of my favourite ways to try and build passive income streams is by buying shares in blue-chip UK shares that pay dividends.
Dividends are never guaranteed to last, so I pick the shares carefully and keep my portfolio diversified across different companies. Here are three in my portfolio currently that earn me easy money – I just sit back and let the passive income roll in!
Card Factory
The retailer Card Factory (LSE: CARD) has not distinguished itself on the stock market lately. Over the past year, this UK share has drifted down by 5%.
But it has a simple, proven business model that it is increasingly seeking to take international. Last week’s final results were broadly impressive: revenue grew 6% and the dividend per share was raised by 7%.
The City’s reaction was lukewarm, though. There were some parts of the results I did not like: net debt (excluding leases) rose 71% while basic earnings per share fell 4%. Tariff disputes disrupting supply chains is a risk for the business.
But with a price-to-earnings ratio of 8, I see Card Factory as an attractively valued, easy to understand business that I think could keep growing. Its dividend yield is a juicy 4.9%.
Diageo
Many companies cut their dividends from time to time, or hold them flat.
Compare that to Guinness brewer Diageo (LSE: DGE). It has grown its dividend annually for decades. The current dividend yield is 3.6%, just above the FTSE 100 average of 3.5%.
Past performance is no guarantee of what may come next, not only for dividends but for the business too. While the black stuff continues a run of strong growth that now stretches back a few years, other parts of Diageo’s business have been faring less well.
Demand in Latin America has weakened, some pricy spirits brands have lost their allure in key markets and tariffs pose one more risk for a company already struggling to cope with what a weak economy may mean for consumption habits.
But with its unique brands and manufacturing sites, a large base of loyal customers, and extensive global distribution network, I remain upbeat about the long-term outlook for Diageo.
Henderson Far East Income
A high yield can be a red flag but it is not always so.
Henderson Far East Income (LSE HFEL) is an investment trust that also has a recent record of growing its dividend per share each year, which is a key objective for the trust.
A 31% drop in its share price over the past five years means that this UK share now yields 11.8%.
That is unusually high and there is a risk that economic volatility in Asia could hurt company earnings, making it harder for the trust to keep paying out dividends at the current level.
It owns stakes in firms like China Construction Bank and Taiwan Semiconductor Manufacturing Co. If it keeps investing effectively, a combination of capital gains and earned dividends could hopefully help the trust keep growing its annual payout even from its already exceptional level.
The post 3 UK shares I own for easy passive income appeared first on The Motley Fool UK.
But this isn’t the only opportunity that’s caught my attention this week. Here are:
5 Shares for the Future of Energy
Investors who don’t own energy shares need to see this now.
Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.
While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions,
he says. Mark believes 5 companies in particular are poised for spectacular profits.
Open this new report — 5 Shares for the Future of Energy
— and discover:
- Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
- How to potentially get paid by the weather
- Electric Vehicles’ secret
backdoor
opportunity - One dead simple stock for the new nuclear boom
Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!
More reading
- Lower tariffs could be a game-changer for this FTSE 100 stock
- Looking for FTSE 100 stocks? Here’s one I think could lift off in 2025!
- The Card Factory share price sinks after reporting its 2025 results
- Is now a good time to start investing in the stock market?
- 3 world-class dividend stocks to consider for passive income
C Ruane has positions in Card Factory Plc, Diageo Plc, Henderson Far East Income, and Taiwan Semiconductor Manufacturing. The Motley Fool UK has recommended Diageo Plc and Taiwan Semiconductor Manufacturing. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
