2 FTSE 100 stocks and 1 investment trust I’d buy for passive income!

I’m searching for great ways to boost my passive income in 2023. Here are some top FTSE 100 stocks and a trust I think could help me do that.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Smartly dressed middle-aged black gentleman working at his desk

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I don’t have unlimited reserves of cash that I can use to invest in UK shares. But here’s a collection of top FTSE 100 dividend stocks and investment trusts I’d like to buy in 2023.

I think they could be great sources of long-term passive income.

St James’s Place

People are more active than ever before when it comes to financial planning. Years of poor returns from traditional savings products means demand for investment managers like St James’s Place (LSE: STJ) is rising strongly.

Growing fears over the future of the State Pension are also encouraging people to become savvier with their money. St James’s Place says there are 12m potential customers in the UK, around half of whom are yet to seek advice. This provides a huge amount of business for it to win.

Of course the business operates in a highly competitive marketplace. But it’s steadily expanding to exploit its huge market opportunity. It had 4,626 advisers on its books as of last June, an increase of 70 from the start of the year.

Today it offers a healthy 4.8% dividend yield. The business had a strong record of annual payout growth leading up to the pandemic. And City brokers expect dividends to increase strongly this year and next as profits continue improving.

abrdn European Logistics Income

As the chart below shows, e-commerce is tipped to grow strongly in Europe over the short-to-medium term. So I’m considering buying abrdn European Logistics Income (LSE: ASLI) shares for my portfolio.

This investment trust owns a growing portfolio of warehouses and distribution hubs in mainland Europe. Such assets play a crucial role in getting products from manufacturer and retailer to the consumer. Yet supply is failing to keep up with demand, meaning rents continue to rise strongly.

Predicted e-commerce growth rates between 2023 and 2027
Image: Statista

High construction costs could impact the company’s bottom line in the nearer term. But on balance I think property shares like this are great ways to protect oneself against inflationary pressures. This is because operators can effectively raise rents to pass on rising operating costs.

The forward dividend yield at abrdn European Logistics Income sits at 6.2%.

Vodafone Group

Huge uncertainty surrounds Vodafone Group (LSE: VOD) following chief executive Nick Read’s decision to step down. There will be no shortage of experienced candidates for the job. But a likely change in direction always creates risks for investors.

Despite this, I still believe the FTSE 100 firm is an attractive stock to own. As the world becomes more digital, telecoms companies have an increasingly important role to play in our day-to-day lives. This could lay the groundwork for strong long-term earnings growth.

I like Vodafone specifically because of its operations that straddle Europe and Africa. This gives it exposure to both stable/mature and fast-growing markets. I’m also excited by the huge investment the company is making in 5G and ultrafast broadband, two white hot growth areas.

The telecoms firm carries a huge 10.1% forward dividend yield today. I think it’s a great share to help me boost my passive income.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Vodafone Group Public. 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.

More on Investing Articles

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

The market is wrong about this FTSE 250 stock. I’m buying it in April

Stephen Wright thinks investors should look past a 49% decline in earnings per share and consider investing in a FTSE…

Read more »

Black father and two young daughters dancing at home
Investing Articles

1 FTSE 250 stock I own, and 1 I’d love to buy

Our writer explains why she’s eyeing up this FTSE 250 growth phenomenon, and may buy more shares in this property…

Read more »

View of Tower Bridge in Autumn
Investing Articles

The FTSE 100 is closing in on 8,000 points! Here’s what I’m buying before it’s too late!

As the FTSE 100 keeps gaining momentum, this Fool is on the lookout for bargains. Here's one stock he'd willingly…

Read more »