Forget NS&I Premium Bonds. I’d buy UK dividend shares for a passive income

first_imgForget NS&I Premium Bonds. I’d buy UK dividend shares for a passive income Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address NS&I Premium Bonds are one of the safest investments around. NS&I is backed by the UK government, which means it’s highly unlikely investors will lose any money they put towards these assets. Unfortunately, they do not match UK dividend shares when it comes to passive income potential. NS&I Premium Bonds: Drawbacks Just because the government backs Premium Bonds, it doesn’t mean they are good investments.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Indeed, after the recent round of prize pool cuts, Premium Bonds now offer terrible return rates.What’s more, these investments do not produce a guaranteed rate of return. Owners are entered into a monthly prize draw, and while you can win a significant amount with these draws, nothing is guaranteed. As such, if you are looking to generate a passive income stream, I highly recommend avoiding NS&I Premium Bonds. I would buy UK dividend shares for a passive income instead. UK dividend sharesFrom December onwards, the prize draw interest rate for Premium Bonds will fall to just 1%. In comparison, the FTSE 100 currently supports a dividend yield of around 4%. Immediately, this suggests that UK dividend shares are a better instrument to produce a passive income than government-backed bonds. Some investors and savers might be wary of investing in stocks because of the additional volatility.While it is right that stocks can be volatile, over the long term, investors tend to see extremely positive returns. For example, over the past few decades, a diversified basket of blue-chip dividend stocks would have produced an average annual total return of around 8%. Passive income streamIn my opinion, this is best way to build a passive income stream with UK dividend shares. A selection of high-quality blue-chip stocks such as Unilever and GlaxoSmithKline could provide the perfect blend of income and capital growth over the long term. It should also minimise the risk of investors seeing a considerable loss in their portfolios. Another approach could be to buy a low-cost index tracker fund. These simple funds by the whole index of stocks, allowing investors to profit from the average dividend without having to worry about selecting individual securities. This could be a great place to start for investors who are not too sure about the market and want to minimise their risk while maximising profits.Combining NS&I Premium Bonds and UK dividend shares, maybe the best approach for investors who want to generate a passive income with reduced risk.For example, a 50/50 portfolio of Premium Bonds and blue-chip stocks yielding 4%, could produce an income return of around 3% every year. That’s excluding capital growth. This offers investors the best of both worlds, capital protection with bonds and additional growth and income with equities.That’s why I would buy UK dividend shares for a passive income over Premium Bonds.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Rupert Hargreaves | Saturday, 17th October, 2020 Rupert Hargreaves owns shares in Unilever. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. 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.center_img Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Image source: Getty Images See all posts by Rupert Hargreaves I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to get access to our presentation, and learn how to get the name of this ‘double agent’!last_img read more

Patrick Reed’s caddie confirms altercation with fan at Presidents Cup

first_imgBooed and heckled throughout the 13th Presidents Cup following his antics at the Hero World Challenge, 2018 Masters champion Reed went down 5 and 3 to International pair Hideki Matsuyama and C.T. Pan in the morning’s four-ball.The result led to a clash between Reed’s caddie and a supporter prior to Saturday’s foursomes.Official statement to Fore Play from Patrick Reed’s caddie, Kessler Karain, on #PresidentsCup altercation with fan: pic.twitter.com/ZQXT0NxhJ7— Fore Play (@ForePlayPod) December 14, 2019″As a caddie, one of your jobs is to protect your player,” Karain said in a statement to Fore Play.”We have been known for having fun with some good banter, but after hearing several fans in Australia for three days some had taken it too far. I had had enough.”Riding on the cart, guy was about three feet from Patrick and said, ‘You f—ing suck.’ I got off the cart and shoved him, said a couple things, probably a few expletives.”I don’t think there’s one caddie I know that could blame me.”The most harm done was a little spilled beer, which I’m more than happy to reimburse him for.” MELBOURNE, Australia — Patrick Reed’s caddie, Kessler Karain, confirmed he was in an altercation with a fan at the Presidents Cup on Saturday.Reed’s forgettable campaign at Royal Melbourne Golf Club, where he arrived amid cheating allegations, continued following a third consecutive defeat alongside United States teammate Webb Simpson. Patrick Reed having some fun with the crowd. #QuickHits pic.twitter.com/RFEz6kgaUQ— PGA TOUR (@PGATOUR) December 13, 2019Reed has been public enemy No. 1 after his two-stroke penalty during last week’s Hero World Challenge in the Bahamas.Already a maligned figure on the PGA Tour, American golfer Reed was penalized for improving his lie in the bunker, hitting the sand twice during his practice swings, sparking controversy and claims of cheating.Booed on Day 1, Reed taunted the Melbourne crowd on Friday by mimicking a shovelling motion amid heckles.last_img read more