Stock market

Here’s how I’d target passive income from FTSE 250 stocks right now.

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When we invest for long-term income, it’s easy to focus only on dividend stocks. FTSE 100. But I think so FTSE 250With a large balance of growth stocks, can do even better.

The point is that we don’t need a profit to earn income from our investments. We can always sell some shares every year and take the cash that way.

Some people may be intimidated by the idea. I mean, should we try to hold forever, and even reinvest dividend cash when we can?

How long can we last if we leave our original capital?

It’s all cash.

Well, over the past few decades, a lot of people have retired with their portfolios full. Nasdaq Growth stock. And hardly any of them pay a penny in profit.

But their wealth has grown far ahead of the market average, and they can more easily afford to sell shares.

And, it’s always possible to invest for growth now, if that’s an investor’s preferred long-term strategy. And then switch to blue-chip dividend stocks in retirement to try to preserve capital.

All this leads me to one thing. I see some great value stocks in the FTSE 250 at the moment, at a time when the smaller index is having one of its down spells.

Long term game

Games Workshop (LSE: GAW) is one. Shares are on a forecast price-to-earnings (P/E) ratio of 22, which will fall to 19 by 2026. This value obviously includes a growth premium.

But I want to look at the P/E in light of a firm’s net debt. And, oh, there’s none. Games Workshop is in a net cash position.

If we compare it with FTSE 100 Growth Champion. Rolls Royce Holdingswhich is at a high P/E and has net debt of a few billion.

Games Workshop still has development risk. And I’m wary of a firm that depends on what people are doing for fun. But this assessment seems reasonable to me.

Oh, and there’s a 4.4% dividend forecast. So maybe this isn’t too far from my usual strategy!

Global growth

When I think of global growth stocks, my mind turns to investment trusts. I think they can be a great way to spread risk across a basket of stocks.

Scottish Mortgage Investment Trust The Nasdaq is the best known, along with the stock selection. But I’m thinking of a small one. Alliance Trust Here

It holds Microsoft Stock is something else. Amazon.com And NVIDIA there too.

There is only a modest 2% dividend. And share prices can fluctuate with the Nasdaq. Oh, and the Nasdaq may now be up a bit again.

But to help build a pot that ultimately generates passive income, I think it could be a good addition.

Just a start

These are the only two I see in the smaller FTSE 250 index. And I really think we can make some good long-term revenue from that.


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