Dividend shares are an excellent way to earn passive income. That’s especially the case when held in a Stocks and Shares ISA, as dividend taxes don’t apply.

The FTSE 100 is home to many world-class, established income shares. For instance, Aviva (LSE:AV.) currently offers a chunky 6.5% dividend yield.

If an ISA consisted solely of Aviva shares, how big would it need to be to earn £20k a year in dividends? Let’s crunch some numbers.

My trusty calculator tells me it would to be worth a whopping £308k to achieve that target in 2026/27.

It’s a sizeable sum to many. That said, there is a far cheaper way to reach this passive income goal.

The magic of dividend shares comes from income that grows, reinvestment of dividends, and allowing time to do much of the hard work.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Path to a five-figure passive income

Consider this example. An investor buys £5,000 of Aviva shares at the start of every year. It has a long history of increasing dividends and has a stated mid-single-digit policy.

Conservatively, we can assume payments rise by 5% a year. Let’s assume a starting yield of 6.5%, and all dividends will be reinvested inside an ISA. To be extra-conservative, let’s also assume its share price doesn’t grow over time.

If an investor does this consistently for 15 years, they would have added £75,000 to the ISA. But the portfolio would be worth £176,946. In addition, it would be throwing off £20,176 in dividends. That’s over £1,680 a month in passive income.

A solid underlying business

Note that there’s more to dividend shares than just dividends. Dividends are typically paid from earnings, so a solid underlying business is important.

Aviva’s operating profits surged 25% to £2.2b in 2025. The 2026 targets were hit a year early, and management launched a £350m share buyback programme.

Things are looking good for this London-based insurer. It’s a capital-light business and benefits from a rock-solid balance sheet.

And the bigger picture is that it benefits from an ageing population, wealth growth, and AI-driven efficiencies across its businesses.

For patient investors, I think it could look compelling.

Diversification is wise

But bear in mind that even reliable dividend shares can face shocks. A prolonged weak economic cycle could slow earnings. A sharp change in interest rates could impact many of Aviva’s business areas. And regulatory changes to pensions and insurance products can requirement adjustments.

Dividends aren’t guaranteed, and it’s also why an investor might consider diversifying across several income shares. The FTSE 100 is home to several excellent options and spreading investment across a few from different industries avoids putting all eggs in one basket.

As I like to say, there’s plenty of fish in the Footsie.

The post How much do you really need in an ISA to earn a £20,000 passive income appeared first on The Motley Fool UK.

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• How many Aviva shares must I buy to give up work and live off the income?
• Turning a £20k ISA into a £2,400-a-year second income
• Last chance ISA: I’d aim to turn £20K into £2,000 a year in passive income
• How much would someone need in an ISA to double the state pension and target a £24,436 annual income?

The Motley Fool UK has no position in any of the shares mentioned. Harshil Patel has no position in any of the shares mentioned. 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.

It’s nearly that time of year again. In addition to an Easter egg or two, I’ll be looking forward to the start of the new Stocks and Shares ISA season. This year I’m focussing on dividends.

Dividends are an excellent way to earn passive income, in my opinion. But how much is really needed to earn £2,000 a month?

Well, it depends. If an investor wants income soon, my trusty calculator tells me that they would require between £300,000 and £600,000. But why the big range?

That’s because it really depends on the dividend yield. At a 4% yield, the investor would need £600k, but at a 9% yield, they would only need £300k.

Many income funds deliver yields between 4% and 5%. That said, savvy stockpickers could pick up several FTSE 100 dividend shares yielding over 6%.

A smarter way

Either way, it’s a sizeable pot. A smarter way would be to plan ahead. Instead of targeting passive income in 2026, an investor could build income over time with far less upfront cash.

The way to do this is by owning dividend growth shares, and reinvesting dividends to buy more shares. In turn, these generate more dividends, which buy more shares. This snowball effect is a powerful way to accelerate investment growth.

Many reliable dividend shares are from solid FTSE 100 companies. Enter Legal & General (LSE: LGEN), the company that quietly powers pensions, life insurance, and asset management for millions.

It has reliably paid dividends to shareholders for decades. And in the vast majority of those years it managed to raise its dividend payment.

Right now, it offers a chunky 8.9% dividend yield. That’s the largest yield in the FTSE 100. It has also committed to ongoing dividend increases.  

A top FTSE 100 dividend share

Legal & General should benefit from long-term trends over the coming years. For instance, ageing populations should drive demand for its retirement solutions.

Of course, even the most solid dividend shares aren’t risk-free. If the economy experiences an extended period of weakness, it could put pressure on earnings. The recent dip in its share price reflects short-term disappointment over a profit miss and market jitters from the war in the middle east.

Maximising a Stocks and Shares ISA

Going back to how much an investor would need to target £2k a month of income, consider this illustration.

Assume they invested £20,000 a year in Legal & General shares with dividends reinvested and growing at 5% a year. My trusty spreadsheet tells me it would take just eight years to blow past the income target.

I calculate by the end of year eight, the portfolio value would be worth £264,769 and annual dividend income would be £29,467. But here’s the most interesting part. The investor would only have put in £160,000. A far cry from the £600k mentioned earlier.

Personally, I prefer to own a selection of dividend shares rather than just one so I’m not putting all my eggs in one basket.

But, there you have it. Regular investments into a Stocks and Shares ISA, a bit of patience, and a steady-as-she-goes company could be enough to wave goodbye to the 9-to-5.

The post How much do you need in a Stocks and Shares ISA to target £2,000 a month of passive income? appeared first on The Motley Fool UK.

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• £10,000 invested in ultra-high yield Legal & General shares on 5 April last year is now worth…
• How much do you need in a Stocks & Shares ISA for a £1,000 monthly second income?

The Motley Fool UK has no position in any of the shares mentioned. 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.

Gold and silver prices have been soaring higher in recent months. Gold hit record highs over $5,500 per ounce and silver soared past $100 per ounce for the first time.

Enter FTSE 100 miner, Fresnillo (LSE:FRES). This mining giant digs up gold and silver, mainly in Mexico. Over the past year, its share price rocketed higher by 430%. That’s insanely good for a FTSE 100 share as the average for the index was around 22%.

Over the past five years, it has even beaten Rolls-Royce shares, which might seem hard to believe given that company’s post-pandemic strength.

FTSE 100 top performer

But can Fresnillo continue its meteoric rise in 2026?

Well, that depends on whether demand for gold and silver continues to climb. Rising gold prices have been driven by central banks snapping up the shiny metal, a weaker US dollar, and geopolitical tensions.

As for silver, it tends to move even more dramatically than gold. Some even call it ‘gold on steroids’. Like gold, silver is also seen as a safe haven in times of uncertainty. But in contrast, it has strong industrial uses too. For instance, it’s used in solar panels, electric vehicles, and AI data centres. All of which are expected to be high-growth sectors for the coming years.

What could slow the precious metals train?

In the past, when precious metals have seen explosive rallies, they could become quite volatile. Prices can swing wildly in both directions. They could also experience profit-taking in the short term.

That said, many experts expect medium- to long-term trends to push prices upward. Many major banking institutions target over $6,000 for gold and over $150 for silver this year.

As for Fresnillo, its direct tie to commodity supercycles like the one we could be experiencing now make it a standout for continued outperformance in 2026. It delivered robust 2025 results, but recent downward revisions to 2026 output have introduced some caution.

Leveraged play on gold and silver

As a low-cost operator, it remains competitive and offers profit margin resilience and strong cash-flow generation. A return on capital employed of over 17% suggests good use of capital. And a forward price-to-earnings ratio of 30 is in line with historical averages during bull cycles. As a bonus, Fresnillo also offers a 2% dividend yield.

But bear in mind, if prices for precious metals reverse for an extended period, Fresnillo shares could suffer in the near term.

That’s why I would only own it as part of a balanced and diversified portfolio. FTSE 100 shares are typically large, mature, and established companies that don’t often witness triple-digit returns.

But now and again, there are outliers. In the past year, there were six FTSE 100 shares that resulted in returns of over 100%.

Whether we’ll see a repeat in 2026 is unknowable, but certainly possible. That said, after any near-term volatility in precious metals prices, I think long-term trends will continue to support them. That should bode well for Fresnillo in 2026.

The post Here’s a FTSE 100 share that I think could beat Rolls-Royce in 2026 appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Fresnillo Plc and Rolls-Royce Plc. 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.

Let’s be real. £2,000 a month in passive income is a nice chunk of change. In my opinion, one of the best ways to earn passive income is from dividends.

But how much would an investor realistically need to save to earn £24k a year? Well, that depends. If the investor wanted to start earning this passive income immediately, then my trusty calculator tells me they would require a £600,000 pot.

But hold on a minute. £600k?! Now that’s a hefty chunk not typically found down the back of a sofa.

Passive income tricks from dividends

Thankfully there is a smarter way to earn a substantial passive income. And it involves investing a lot less hard-earned money.

So what’s the catch? Well, the trade-off is that the investor will need to wait a bit. Delayed gratification, but one that I think is worth the wait.

There are some nifty tricks that allow investors to invest less money if they’re prepared to wait 10-15 years.

For instance, reinvesting dividends can boost investments over time through the power of compounding. Dividend cash buys more shares, which generates more dividends, which buys more shares. And so on. This snowball effect is a powerful way to accelerate investment growth.

Secondly, for the same reason, adding fresh money every year can also have an outsized impact on the final investment income.

Dividends that shine

There are plenty of FTSE 100 shares that have a long history of paying reliable dividends.

Enter National Grid (LSE:NG.), the company that keeps the lights on for the entire country. It has reliably paid dividends to shareholders every year for over 30 years. And in around 80% of those years, it managed to raise its dividend payment.

Right now, it offers a 4.2% dividend yield, and has committed to inflation-linked increases over the coming years.

National Grid not only offers an above-average dividend yield, but also reliable dividend growth. Of course, nothing is risk-free though. The government could decide to get involved in the electricity business, or Ofgem could slash allowed returns. Either could impact dividends in the future so it pays to keep an eye open.

Crunching the numbers

Using my trusty calculator again, I’ve crunched some numbers to show how an investor could earn £2k a month in passive income. Here’s the plan:

• Start with £50,000 invested in National Grid shares
• Buy £6,400 of more shares every year.
• Reinvest the dividends every year to buy more shares.

Assume the annual dividends keep growing by 5% a year, which has roughly been the case historically. And assume the share price doesn’t grow, just to be conservative.

After 15 years, they should have around 24500 shares, by which point it should produce 98p per share in dividends. That equates to over £24k a year.

In total they would be investing £146,000 over that period. But it sure is a far cry from £600k!

So, there you have it: regular investments, a bit of patience, and an extremely dull company could be enough to wave goodbye to the 9-to-5. If you prefer something a little less dull, there are plenty more fish in the Footsie.

The post How much do you need in an ISA to target £2,000 a month of passive income appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended National Grid Plc. 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.

It might sound strange to SIPP lovers, but a Stocks and Shares ISA is my favourite tax wrapper. It’s free from capital gains and dividend taxes, and I can access it at any time. That makes it more flexible than my SIPP.

It might also be of interest to an investor aiming to replace their salary one day. But how realistic is it to use stock-based investments to ‘earn’ a living? Let’s crunch some numbers.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Replacing a job with a Stocks and Shares ISA

According to the Office for National Statistics, the average full-time salary in the UK is £39,039. If an investor also factors in a State Pension income of around £12k, they will need an income of £27k from a Stocks and Shares ISA.

The widely-used 4% rule suggests that retirees can safely withdraw 4% of their portfolio for at least 30 years.

Using this withdrawal rate, I calculate an investor would need a pot worth £676,650.

There are a few ways to target such a sum. These levers consist of time, investment return and pounds invested. For instance, such a sum could be achieved by investing £1,000 a month for 20 years, at the average yearly investment return of 10%.

The less someone invest, the more time is needed. Alternatively, it could also be achieved with £500 a month, for 15 years, but at a much larger (and much less likely) 25% annual return.

It’s certainly a bigger challenge. But to target such a large performance, investors would need to search for individual shares that could beat the market over time.

Looking at past winners

One such past winner is fantasy miniatures business Games Workshop. It has managed to grow its share price by 30% a year over the past 15 years. And that’s just one example.

But how to find these top-performing shares? Well, the first thing to note is that Games Workshop was a much smaller company back then. Valued at £130m, it would have been classed as small-cap share.

Smaller companies can often grow much faster than larger ones. But bear in mind that they can carry greater risk and can often be more volatile.

A tiny titan that could boost ISA returns

Today, MS International (LSE:MSI) has a market capitalisation of £257m, and mainly operates in defence and security markets. It’s not widely talked about, but for investors looking for undiscovered gems, that’s a good thing.

This small business has delivered exceptional earnings growth of 53% annually over the past five years. Much of that was driven by US defence contracts. In fact, just recently it announced a $42m contract with the US Navy, which should boost sales significantly.

MS should be supported by rising defence spending globally. At the 2025 NATO Summit, all 32 members pledged to allocate 5% of GDP annually by 2035 towards defence and security spending.  

That said, it could take some of these countries a few years to achieve these targets. Also bear in mind that government contracts can often face delays and budget cuts over time. And changing governments can alter priorities.  

I like its 29% return on capital employed as it shows an efficient use of capital. And despite having many growth characteristics, it still offers a reliable 2.1% dividend yield. Overall, I’d call it a high-quality business that’s available at an attractive valuation. And owning shares just like this one could play a big part in building a sufficiently large Stocks and Shares ISA.

The post How much do you actually need in a Stocks and Shares ISA to replace your full-time salary? appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Games Workshop Group Plc. 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.

Dividend shares are an excellent way to earn passive income, in my opinion. Investors can build up a Self-Invested Personal Pension (SIPP) during working years, then withdraw regular dividend income once they turn 55. Although, this pension age is expected to rise over the coming years.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Some companies distribute a portion of their profits to shareholders in the form of dividends. Typically, this occurs quarterly or semi-annually. It’s a reasonable way to earn passive income as investors can receive regular dividends without having to sell any shares.

Also, dividend investors can ignore the daily ups and downs of share prices. The best dividend shares have a strong track record spanning many decades.

This stock pays a 9% yield

One example of such a share is Legal & General (LSE:LGEN). Its shares are attractive to income investors due to its 9% dividend yield. This is much greater than the FTSE 100 average of around 3%–4%.

Often, though, a high yield might not be the most reliable. But L&G has a strong record, supported by robust cash flows. In fact, it has paid a dividend every year for at least 35 consecutive years. It has also managed to increase its payout annually for the past 15 years.

Its revenue streams are diverse and include insurance, investment management, and retirement products and services. This spread of business areas provides resilience.

Bear in mind that L&G would be considered a defensive play. And although it has been an excellent source of dividends, its share price has lagged the average FTSE 100 share. And although it’s an excellent source of dividend income, investors might want to consider pairing it with more growth-oriented shares. Particularly if retirement age is far into the future.

£1,500 in passive income

To target £1,500 a month of passive income, that equates to £18,000 a year. If an investor owns dividend shares like L&G that offer a 9% yield, I calculate that they would need a total SIPP worth £200,000.

But as a 9% yield is at the higher end of the range, so crunching the numbers based on a 6% yield would be more conservative. Note that if the SIPP earns 6% a year in dividends, the pot would need to be £300,000.

This might look like a substantial sum, but by investing regular sums over many years it can become a lot more manageable.

For instance, including dividends and capital growth, the long-term average stock market return is around 8% a year. Given this rate of return, I calculate that an investor could build a pot worth £300,000 by regularly investing £345 a month for 25 years.

Don’t forget about inflation

Also, note that a £1,500 a month income in the future will likely not provide the same value as £1,500 today. The price of goods, services, and living costs are likely to rise. That’s why it’s important to consider the effects of inflation.

Overall, an investor looking for passive retirement income in the future should consider a diversified portfolio of both dividend and growth shares. Starting as early as possible should also help in reducing the burden of building a sizeable pot.

The post How much do you need in a SIPP to target a £1500 monthly passive income? appeared first on The Motley Fool UK.

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• £10,000 invested in ultra-high yield Legal & General shares on 5 April last year is now worth…
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The Motley Fool UK has no position in any of the shares mentioned. 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.

My Stocks and Shares ISA has more than doubled over the past five years. And I’m aiming for it to do that again in the coming years.

I own a selection of funds and several individual shares that I’ve picked. And although the funds have performed well, it’s the individual stocks that have outperformed.

Striking gold

Investors looking to do the same could consider Caledonia Mining Group (LSE:CMCL). This is a gold exploration and mining company. And right now, it’s enjoying strong profitability due to a sustained high gold price.

The company estimates profitability for 2025 will be “materially ahead of market expectations”. That’s a phrase that frequently makes me smile.

If profits are up due to a high gold price, then the big question is whether it can remain elevated. There are several reasons why prices have risen over the past few years. Among them is a combination of geopolitical risks, global trade tensions, and a weakening US dollar.

Where next for gold?

Global economies have experienced many shocks in recent years and gold is often used as a hedge against this kind of risk.

I think uncertainties could persist, which should keep gold prices elevated. The World Gold Council agrees, forecasting some possible upside for the rest of the year.

This could bode well for Caledonia Mining. That said, bear in mind that there are factors that could cause gold prices to fall and temper profitability for this business. For instance, if global conflicts ease, it could lead to a dramatic fall in gold prices.

Finally, I like that this share offers several appealing financial metrics. For instance, it has a price-to-earnings ratio of just 10, a return on capital employed of 18%, and a 30% profit margin.

This is exactly the kind of UK share that could potentially supercharge an investor’s Stocks and Shares ISA.

Idea for a winning Stocks and Shares ISA

Another cheap share with strong fundamentals is Volex Group (LSE:VLX). It’s a manufacturer and supplier of power and data cables. It might not be a FTSE 100 household name, but this UK business achieved over $1bn of sales this year.

It operates across a diverse range of sectors that includes electric vehicles (EVs), data centres, and medical equipment.

Volex is experiencing strong growth in EVs, where sales grew by 40% this year.

Global sales of EVs are projected to grow from 17m in 2024 to over 30m in 2030. This could bode well for Volex cables.

Strong earnings despite pressures

Despite tariff uncertainty and inflationary pressures, it reported an outstanding year of growth for the company.

And, although it operates in some strong markets, it’s important to note that it’s not immune to wider economic downturns. Also that it sells its cables across several borders, so any escalation of tariffs between countries could raise its costs.

Given strong earnings growth, its price-to-earnings ratio of 14 appears attractive. I also like that it’s a well-managed business with a well-respected CEO.

I’d also note that its Chief Operating Officer bought around £150,000 of shares earlier this year. And although purchases by management don’t always cause share prices to jump, it’s a further encouraging factor.

The post Meet the 2 UK shares that could help double a Stocks and Shares ISA appeared first on The Motley Fool UK.

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The Motley Fool UK has no position in any of the shares mentioned. 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.

One of my favourite ways to target future passive income is by investing in shares. More specifically, investors can make use of tax wrappers like a Stocks and Shares ISA, or SIPP, to achieve future income.

Within these, it’s possible to own a range of managed funds, exchanged-traded funds (ETFs), or individual shares.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Targeting £1,000 of monthly passive income

If an investor wanted to target a £1,000 monthly income, that equates to £12,000 a year. A commonly used withdrawal rate of 4% means that this investor would need a pot worth £300,000.

That might sound like a chunky sum to save, but when broken down over many years, it’s far more manageable.

For instance, I calculate that a 40-year-old would just need to invest £500 a month over 20 years to build such a pot. Some eagle-eyed readers might note that this just adds up to a total investment of £120,000.

That’s because I’d expect the remaining £180,000 to appear from investment gains over time. The assumption here is that it grows by 8% a year. And given long-term investment returns have been around 8%-10%, I think that’s a reasonable assumption to make.

Of course, by targeting greater returns (and accepting greater risk), an investor could reach their goal far quicker. One way that I aim to do that is by selecting individual shares and holding them for many years.

Rewards from long-term investing

One such FTSE 100 share that I’ve owned for several years is Games Workshop (LSE:GAW). Its share price has soared by over 1,200% since I first bought it back in 2017.

If an investor had spent £500 a month on just this share since then, they’d be sitting on a pot worth over £210,000 already. That’s a phenomenal achievement in just eight years. It would also likely result in a much earlier passive income than planned.

But there are a few things to bear in mind. First, I would never suggest that anyone invest everything in one stock! Second, Games Workshop wasn’t large enough to be in the FTSE 100 back in 2017. It was a much smaller business.

Smaller companies can often grow much faster than giant, mature businesses. As UK small-cap investor Jim Slater famously quipped, “elephants can’t gallop”.

It also traded at a much lower price to earnings ratio. Today, it hovers around 30, but back in 2017 it traded as low as 10 times earnings. It’s not as cheap as it used to be.

Still a great business

Looking ahead, I still consider Games Workshop to be a high-quality business with ample potential. It operates in a niche market that is difficult to replicate. That gives it a competitive advantage.

In turn, it earns a chunky double-digit profit margin and an incredible 70% return on capital employed.

In recent years it has partnered with Amazon to bring some of its vast character universe to movies and TV shows. And this licencing revenue has much more room to grow in my opinion.

A long-term investor could consider this and similar prospects. And although much can go wrong with individual shares, by selecting a diversified group of 10-20 names, it would spread the risk.

The post How much should a 40-year-old invest in an ISA to earn a monthly passive income of £1,000 appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Games Workshop Group Plc. 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. Harshil Patel owns shares in Games Workshop. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

My Stocks and Shares ISA has more than doubled over the past five years. I’ve done this by picking high-quality shares and patiently holding them. Today I’m looking at FTSE 100 shares that could help an investor’s ISA to multiply in value over the next five years.

First, investors could consider the credit-scoring business Experian (LSE:EXPN). Over the past few decades, data has become the new oil. And Experian holds barrels of valuable data relating to credit scores and fraud detection.

It’s a clever business that analyses this data, then creates various tools and subscriptions that it sells to clients around the world. Experian’s customers use these tools to make business decisions, reduce risk, and prevent fraud.

Sales have reached over $7.5bn, up 45% in five years. And net profit margin consistently hovers around 15%.

Tripled in 10 years

I particularly like its regular revenue streams. It offers reliable cash flow, which I prefer to lumpy, irregular income.

Bear in mind that new technology could raise competition for Experian. And although it holds competitive advantages, it’s not totally immune to disruption.

Its share price has more than tripled over the past decade. Given its strong markets, solid business model, and steady growth, I’d expect it to perform well over the coming decade.

My most successful FTSE 100 investment

Another FTSE 100 share that is going from strength to strength is Games Workshop (LSE:GAW). It makes fantasy miniatures and is engaged in the hobby of collecting, painting, and playing with them.

I first came across and bought this share back in 2017. It wasn’t in the FTSE 100 at the time as it was a much smaller business. Its share price has ballooned from £10 back then to over £160 today. That’s 16-fold in eight years.

This kind of share could really supercharge an investor’s ISA.

That said, I’m not expecting this share to repeat such a tremendous gain in the coming years. It’s a larger and slightly more mature business now.

But I’d still consider it a high-quality FTSE 100 share. For instance, it offers a substantial return on capital employed of over 60% and net profit margin of 30%. This is among the best I’ve seen for a retail company anywhere.

Earnings have been growing at around 17% a year, which is impressive. And looking forward, I reckon Games Workshop will continue to do what it has so successfully been doing.

It has a loyal customer base that continues to return to the company’s offerings. And demand for the hobby continues to grow globally.

Bear in mind that growth can slow at any time though. It relies on product innovation and brand loyalty. Alternative hobbies could arise over time so it’s something to keep an eye on.

Licencing looks promising

One part of the business I’m most excited about is licencing. It has a gigantic and rich content library that could be used for numerous movies, shows, and games.

One such licencing deal it now has is with Amazon for a film and TV series set In the Warhammer 40,000 universe.

Licencing sales have reached an all-time high for the company. And given its very high profit margin, it remains a key area of focus for the business.

The post 2 FTSE 100 shares that could help an ISA double in value appeared first on The Motley Fool UK.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Amazon, Experian Plc, and Games Workshop Group Plc. 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. Harshil Patel owns shares in Games Workshop. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Typically, the FTSE 100 isn’t known for quick share price growth. It’s more associated with mature companies that pay stable dividends with steady growth.

Including dividends, the Footsie has gained 69% over the five years. But one share within the index is already up by the same amount this year alone.

Soaring to an all-time-high

The share I’m referring to is BAE Systems (LSE:BA.). This aerospace and defence contractor is soaring to record highs, both in terms of share price and earnings.

The business is on a solid footing, and it benefits from an ample order backlog and pipeline of work. This provides excellent visibility of earnings, offering predictable cash flows.

But after a near-70% gain in share price in 2025 alone, has it got any more ammunition for further gains? I reckon so.

Looking ahead, the biggest factor that could benefit BAE Systems and its share price is the changing defence and security landscape. For instance, European NATO members are boosting their defence budgets in response to heightened geopolitical tensions.

Also, the UK has committed to raising defence spending to 2.5% of GDP by 2027. It also has an ambition to reach 3% in the next parliament. This directly benefits BAE Systems as it’s a key contractor.

These are long-term decisions that are unlikely to reverse, in my opinion.

Global conflicts and threats are rapidly evolving. And that’s why BAE is investing in emerging technologies such as uncrewed air systems, space solutions and cybersecurity, among others.

Its investments over many years are bearing fruit too. For instance, just this year it secured a mammoth £500m contract with the Ministry of Defence for naval radar systems.

Points to consider

So far this year, the world has seen considerable uncertainty surrounding US tariffs. On this note, the company doesn’t expect to be materially impacted by them. That’s because most of its equipment for US customers is produced in the US.

But there are some factors to be aware of. The US is BAE’s biggest market. Any major shift towards more ‘America First’ policies could impact sales.

Large-scale defence projects can suffer from cost overruns and delays. It’s certainly something it needs to stay on top of.

In addition, BAE relies on being at the forefront of advanced technologies. But this is rapidly changing, especially in an age of AI. It must at least keep pace with competitors to avoid being outcompeted by superior technology.

A growing business at a reasonable price

Overall, it looks like a solid business with ample opportunities to grow. With a price-to-earnings ratio of 25 it’s not the cheapest it has been in recent years but it also doesn’t appear too expensive given its prospects.

BAE has earnings growing at 8%-10%, a return on capital employed of 12%, plus a 2% dividend yield. This looks like a solid FTSE 100 share to me.

I used to hold it but sold it to raise some cash. As soon as I have some more available money in my Stocks and Shares ISA, I’ll be buying this one back.

The post This FTSE 100 share is up by 69% this year but I think it’s just getting started appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended BAE Systems. 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.