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I am looking to generate high and incremental secondary income from a portfolio of FTSE 100 shares to fund my retirement. Now seems like a great time to do it, before the annual deadline of 5 April to contribute this year’s £20,000 ISA.
A Stocks and Shares ISA wrapper is a great way to invest in shares because all share price growth and capital gains are tax-free for life. When a person dies, unused pots can even be transferred to a spouse or civil partner, the tax benefits remain unchanged.
Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice. Students are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
Stock markets are volatile right now, due to the conflict in Iran. That will scare many investors, but actually today could be a good time to invest.
A buying opportunity for the FTSE 100
In The Motley Foolwe think that stock market volatility is a good opportunity to find stocks, because they are suddenly cheaper than they were. Not only that, but they also pay more. The yield is calculated by dividing the dividend per share by the share price. When stock prices go down, yields automatically go up. We see that again now.
Today, two FTSE 100 stocks offer good yields. Insurance and property manager Legal and General Group it has a trailing yield of 8.8%, while it is insurance Ordinary Lifeuntil recently called the Phoenix Group, it yields 8.1%.
This is almost double what investors can expect from the best savings account on the market. A number of other high-yield blue-chip stocks include the wealth manager IM&G by 6.9%. I actually caught all three. They are all financial services stocks, so I need to diversify my sources of income by investing in another sector. About you Land Securities Group (LSE: LAND), also known as LandSec? It pays one of the highest incomes in the index.
LandSec is one of the UK’s largest commercial property owners and developers, with a diverse portfolio of office and shopping premises. Recently, there has been a rough run, plagued by trends that are beyond their control. They include online shopping, work-from-home trends, and the cost-of-living issue. The UK’s ailing economy has also taken a toll on property disposals.
Land Securities’ shares are being tested
At today’s price of 600p, LandSec is trading at roughly half its level 10 years ago. Stocks were starting to recover, but rising oil prices and inflation pulled them back. They are down 9% in the last month. One the good news is that LandSec shares now look good value, with a price-to-earnings ratio of just 11.8. paid a dividend of 6.8 %.
Obviously, there are risks, especially if the conflict in Iran continues. This may drop significantly, or profits may come under pressure. I think it’s worth considering by money-minded investors who understand this niche sector. Otherwise, I see many well-priced income stocks in the FTSE 100 today.
