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A second revenue is greater than only a little bit of spare money for the weekend. It might probably provide help to construct an emergency fund, cowl rising payments, or velocity up a home deposit.
Investing in shares that pay dividends is a straightforward and standard technique to purpose for that further money with out taking over a second job.
For Britons, one of many smartest methods to speculate is with a Shares and Shares ISA, as a result of any beneficial properties earned listed here are free from revenue tax. Over time, that tax protect could make a noticeable distinction, particularly as revenue grows.
Please word that tax remedy is dependent upon the person circumstances of every consumer and could also be topic to alter in future. The content material on this article is offered for info functions solely. It isn’t supposed to be, neither does it represent, any type of tax recommendation. Readers are liable for finishing up their very own due diligence and for acquiring skilled recommendation earlier than making any funding selections.
So what does it take to generate £100 per week?
Maths time
100 quid per week is £5,200 a 12 months. If an investor targets a dividend yield of 6%-7%, the maths is pretty easy:
- At 6%, it might require roughly £86,700 invested.
- At 7%, it’s nearer to £74,300.
Break up the distinction, and a practical goal sits at £75,000-£85,000. That will sound like so much however it may be constructed over time.
The FTSE 100 has delivered annnualised complete returns of about 9.5% over the previous decade (with dividends reinvested). If that common holds, it might take about 10 years with an funding of £400 a month.
It would sound counterintuitive to spend cash to make cash, however as soon as in place, it could pay itself off rapidly. Plus, you find yourself with a strong pot of financial savings for retirement.
Which shares?
After all, inventory choice issues. The London Inventory Change is filled with high quality dividend shares, however the largest winners are sometimes international companies fairly than UK-focused names.
Lengthy-term outperformance tends to come back from scalable fashions like knowledge and software program, or from well-timed publicity to cyclical sectors corresponding to commodities and defence.
A superb instance is international info companies firm Experian (LSE: EXPN). This 12 months’s been robust however between 2015 and 2025, it delivered a complete return of over 310% — roughly 15% a 12 months on common. That’s far forward of the broader market.
its newest outcomes, progress stays regular regardless of fears round AI dangers. Income’s been rising within the excessive single digits, supported by robust demand for credit score knowledge and analytics, notably in North America.
What’s the catch?
Whereas Experian’s margins and money technology are strong, it solely pays a modest dividend with a yield of round 1%-2%. So after the 10-year progress interval, an investor would want to pivot extra into higher-yielding shares.
Valuation’s additionally a priority. The shares commerce at a premium price-to-earnings ratio in comparison with the FTSE common. That displays its high quality, but it surely does depart much less room for error.
If client lending exercise slows or regulatory adjustments hit income, the share value might take a success.
So is it price contemplating?
For long-term traders, Experian reveals how combining regular progress with rising dividends can speed up revenue over time.
With typically optimistic analyst sentiment, I believe it’s price contemplating. Many brokers charge the inventory as a Purchase or Maintain, with forecasts pointing to continued earnings progress.
It’s not the best yielder but it surely demonstrates an vital level: constructing a £100 weekly revenue isn’t nearly chasing yield. Getting there requires a mixture of revenue shares and prime quality, growth-focused firms.
