Calling ISA investors! 2 UK shares I’d buy today to make a growing passive income – Yahoo Finance UK

Various denominations of notes in a pile

However, a number of companies continue to pay attractive dividends that could improve your level of income.

Here are two such examples. They could be worth buying today and holding for the long run as part of a diverse portfolio of shares.

A resilient passive income opportunity

Its recent results showed it’s making progress in becoming more efficient. For example, £100m in savings were delivered in the most recent 12-month financial period. It’s also investing heavily in its asset base, with record capital expenditure of £5.4bn.

Looking ahead, National Grid expects to deliver asset growth of 5-7% per annum. It also anticipates Covid-19 won’t have a material impact on its financial performance in the long run.

As such, now could be the right time to buy while it offers a dividend yield of 5.4%. It could prove to be a solid passive income option at a time when many FTSE 100 and FTSE 250 companies are facing challenging prospects. And that may impact on their capacity to pay rising dividends in the coming years.

A FTSE 100 growth opportunity

However, the diversified mining company’s financial prospects are relatively encouraging. For example, it’s forecast to post a 4% rise in net profit next year. And, with its recent results showing it has a solid financial position, it seems to be well-placed to deliver improving profitability in the long run.

In terms of BHP’s passive income potential, the company’s dividend yield currently stands at around 6.3%. This is higher than the income returns available across much of the stock market. It suggests the stock offers a wide margin of safety. That means it can produce an attractive income return even if it experiences an increasingly difficult outlook.

Of course, over the long run, the prospects for a global economic recovery seem to be relatively bright. Therefore, alongside its income potential, BHP could deliver an attractive rate of capital growth that helps to grow the size of your ISA portfolio. This could make it easier to generate a worthwhile income in older age.

The post Calling ISA investors! 2 UK shares I’d buy today to make a growing passive income appeared first on The Motley Fool UK.

Peter Stephens owns shares of BHP Group. 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.” data-reactid=”45″>Peter Stephens owns shares of BHP Group. 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.

Motley Fool UK 2020

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