I would buy 340 shares of this FTSE 250 stock for an annual passive income of £100

 

Britvic (LSE:BVIC) has been quite a lucrative dividend stock on the FTSE 250 over the past decade. For seven years in a row (between 2012 and 2019) its shareholder payouts have grown and investors have seen their passive income almost double.

Unfortunately, the pandemic halted the firm's impressive run as lockouts unsurprisingly took a toll on beverage sales. But management has since steered the ship back on course. As such, dividends have resumed their upward trend and have almost fully recovered to pre-pandemic levels

At the current share price and payout level, investors can instantly unlock an annual income of £100 just by buying 340 shares in the soft drinks empire. With a dividend yield of 3.3%, this transaction would cost just over £3,000. However, assuming the firm can resume its historical average dividend expansion of 7.8%, that annual payout could grow substantially over the long term.

With that in mind, let's take a closer look at this FTSE 250 business and what investors need to consider before plunging into passive income.

What does Britvic do?

Britvic is one of the largest producers of soft drinks in the UK. When you walk down the drinks aisle at the supermarket, if the brand isn't owned by Coca-Cola, chances are Britvic is behind it.

The company's brand portfolio includes well-known names such as Robinsons, J20, Lipton Ice Tea and Fruit Shoot, among others. And it's even the company responsible for bottling PepsiCo products.

But its presence goes beyond just the UK, as Britvic has branches all over the world, including France and Brazil. The latter proved to be a challenging operating environment as poor weather conditions led to sudden stockouts of crops, resulting in a drop in sales volume. And yet, Brazilian consumers still seem happy to pay the premium, as management raised prices to offset the impact, leading to a 17% increase in revenue from that market.

Overall, sales volume has increased slightly in recent results and profit margins are increasing. So it's no surprise that interim dividends have been raised again, pushing the return on FTSE 250 shares in the right direction.

Even FTSE 250 stocks have risks

I have already highlighted the supply chain challenges that Britvic is dealing with in South America. However, some other related factors could pose a significant risk to dividends if not addressed.

The group currently has approximately £732m of loan commitments and equivalents on its balance sheet. And with interest rates raised by the Bank of England, the firm's funding costs have jumped from £7.8m to £11.4m over the past year.

The company still generates more than enough cash flow to cover those costs. However, continued rate rises are likely to put increasing pressure on the bottom line of FTSE 250 shares. If left unchecked, dividend growth could stall.

However, management emphasized that it monitors its exposure to interest rate risk. And with economic conditions starting to improve, future rate hikes could slow in the coming quarters.

Therefore, with the company seemingly back on track, investors may find Britivic an excellent candidate for an income portfolio. At least I think so.

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Do you want to create a steady stream of passive income of £100 a year? Investing in the FTSE 250 share market is an excellent opportunity to achieve this! In this article, we'll delve into a compelling investment strategy and explain why acquiring 340 shares of a particular FTSE 250 stock could potentially deliver your desired passive income goal. Let's take a look at the main reasons for this investment choice and how it can offer an attractive addition to your financial portfolio.

High quality FTSE 250 stock:

Our recommended FTSE 250 stocks boast an excellent track record and a reputation for delivering consistent returns. Its performance indicators backed by thorough market research make it a compelling choice for long-term investors looking for a reliable income stream.

Sustainable dividend yield:

The main strength of this stock lies in its ability to offer a sustainable dividend yield. The company's stable financial results and commitment to paying dividends consistently position it as an attractive income-generating asset.

Dividend growth potential:

In addition to its current dividend yield, this FTSE 250 stock shows impressive potential for dividend growth. As the company continues to expand its market presence and increase profitability, shareholders can expect increasing dividend payments over time, further increasing your passive income.

Market resilience and stability:

In an uncertain economic climate, investors value stability. This FTSE 250 stock has proven resilience during market swings, ensuring your passive income remains protected during challenging times.

Favorable trends in the industry:

The industry in which the company operates is experiencing strong growth and favorable trends. By investing in a well-established player in the sector, you can benefit from the overall growth of the industry and take advantage of growing opportunities.

Long-term growth prospects:

While passive income is the primary goal, this investment does not compromise long-term growth potential. Holding 340 shares in this FTSE 250 share allows you to enjoy both passive income and potential capital appreciation as the share price appreciates over time.

Diversification and risk mitigation:

Diversifying your investment portfolio is essential for effective risk management. Incorporating shares of this FTSE 250 stock adds a new layer of diversification to your holdings, increasing overall stability and reducing vulnerability to market volatility.

In , acquiring 340 shares of this FTSE 250 stock represents a compelling opportunity to generate £100 in annual passive income while benefiting from the share's growth potential. The company's consistent dividend payout, combined with its stability and favorable industry trends, make it an attractive addition to any income-focused investment strategy. As always, do your thorough research and consult with a financial advisor before making any investment decisions. By taking advantage of this opportunity, you will be taking a step towards securing your financial future with a reliable income stream and the potential for long-term capital growth.

Are you looking for a sustainable source of passive income? Look no further! In this article, we explore the lucrative investment opportunity presented by a prominent FTSE 250 stock. By acquiring 340 shares of this company, you could unlock the potential to earn £100 in passive income per year, making it an attractive addition to your investment portfolio.

Strength of FTSE 250 stocks:

FTSE 250 shares are known for their stability and growth potential, making them the preferred choice of many investors. With a diverse range of medium-sized companies listed on the London Stock Exchange, the FTSE 250 offers a balanced mix of opportunities.

Identifying the ideal stock:

In-depth research is essential when choosing the right stock for your investment strategy. This article focuses on a specific FTSE 250 stock and highlights its robust financial performance, strong market position and potential for sustained growth.

Calculation of potential passive income:

By holding 340 shares of this carefully selected stock, you can expect an annual passive income of £100. Our in-depth analysis breaks down the math and helps you understand the factors driving your returns.

Advantages of passive income:

Passive income is a game-changer, providing financial security and the potential for long-term wealth accumulation. Discover the benefits of this investment strategy and how it can improve your financial well-being.

Risk management and mitigation:

Every investment carries a certain degree of risk. We dive into risk management strategies to help protect your investment and minimize potential losses.

Long-term growth prospects:

In addition to immediate passive income, this FTSE 250 stock has impressive long-term growth prospects. Find out how the company's expansion plans and industry trends could further enhance your investment.

Portfolio diversification and allocation:

We emphasize the importance of diversifying your investment portfolio and discuss how these 340 stocks can complement your existing assets to achieve a balanced financial outlook.

Get started - take action today!

Are you ready to secure £100 in annual passive income? Get started now and invest in 340 shares of this FTSE 250 stock. Seize the opportunity to create a better financial future for yourself without breaking a sweat.

Investing in 340 shares of this FTSE 250 stock represents an attractive opportunity to generate £100 in annual passive income. With careful research, risk management and a focus on long-term growth, you can set the stage for a stable and prosperous financial future. Don't miss out on this remarkable chance to achieve financial independence through smart investing. Act now and get on your way to passive income!

Are you looking for a reliable and profitable source of passive income? Investing in the FTSE 250 share market could be your key to financial success. In this guide, we reveal a tempting opportunity to secure £100 a year in passive income by buying 340 shares of a promising FTSE 250 share. Read on to understand how this investment can bring you financial stability and independence.

Why choose FTSE 250 shares for passive income?

The FTSE 250 is known for including a diverse range of robust and growing companies that offer investors exceptional opportunities for long-term financial growth. By choosing the right stock, you can create a stream of passive income that will withstand market fluctuations and economic challenges.

Power to own 340 shares:

For the prudent investor aiming for substantial passive income, acquiring 340 shares in a well-performing FTSE 250 stock is a strategic move. These shares can serve as your route to £100 a year, giving you a consistent return on your investment.

Stability and predictability:

Investing in the FTSE 250 provides a level of stability and predictability that is hard to match in other markets. With 340 stocks in your portfolio, you'll benefit from diversified holdings that reduce the impact of individual stock price fluctuations. In addition, the FTSE 250's historical growth pattern and solid performance over time offer the assurance of a reliable passive income stream.

Capitalization on dividends:

Many FTSE 250 companies reward their shareholders with regular dividends, making them an excellent choice for passive income seekers. By owning 340 shares, you will be entitled to a pro rata portion of these dividends, further increasing your annual passive income.

Long-term growth prospects:

Investing in 340 shares of a promising FTSE 250 share is not just about immediate passive income. The potential for significant long-term capital appreciation remains a significant advantage. As the company grows and expands, the value of your shares could increase, boosting your overall return on investment.

Advantages of diversification:

Diversifying your investment portfolio is critical to mitigating risk. Owning 340 shares in carefully selected FTSE 250 stocks complements your overall investment strategy, spreads risk across multiple assets and focuses on stable passive income.

Seize the opportunity to achieve financial freedom with a smart investment in the FTSE 250 share market. By buying 340 shares of a promising stock, you can secure an annual passive income of £100, benefit from stability, dividends and long-term growth prospects. Take the first step towards a prosperous future by investing wisely in the FTSE 250. Consult a reputable financial advisor, make an informed decision and start building your financial legacy today!