One in all my favorite methods to try to construct passive revenue streams is by shopping for shares in blue-chip UK shares that pay dividends.

Dividends are by no means assured to final, so I decide the shares fastidiously and maintain my portfolio diversified throughout totally different corporations. Listed here are three in my portfolio at the moment that earn me straightforward cash – I simply sit again and let the passive revenue roll in!

Card Manufacturing unit

The retailer Card Manufacturing unit (LSE: CARD) has not distinguished itself on the inventory market these days. Over the previous yr, this UK share has drifted down by 5%.

Nevertheless it has a easy, confirmed enterprise mannequin that it’s more and more looking for to take worldwide. Final week’s closing outcomes had been broadly spectacular: income grew 6% and the dividend per share was raised by 7%.

The Metropolis’s response was lukewarm, although. There have been some elements of the outcomes I didn’t like: internet debt (excluding leases) rose 71% whereas primary earnings per share fell 4%. Tariff disputes disrupting provide chains is a danger for the enterprise.

However with a price-to-earnings ratio of 8, I see Card Manufacturing unit as an attractively valued, straightforward to know enterprise that I believe might continue to grow. Its dividend yield is a juicy 4.9%.         

Diageo

Many corporations minimize their dividends now and again, or maintain them flat.

Evaluate that to Guinness brewer Diageo (LSE: DGE). It has grown its dividend yearly for many years. The present dividend yield is 3.6%, simply above the FTSE 100 common of three.5%.

Previous efficiency isn’t any assure of what might come subsequent, not just for dividends however for the enterprise too. Whereas the black stuff continues a run of sturdy development that now stretches again a couple of years, different elements of Diageo’s enterprise have been faring much less properly.

Demand in Latin America has weakened, some pricy spirits manufacturers have misplaced their attract in key markets and tariffs pose yet one more danger for a corporation already struggling to deal with what a weak economic system might imply for consumption habits.

However with its distinctive manufacturers and manufacturing websites, a big base of loyal prospects, and intensive world distribution community, I stay upbeat concerning the long-term outlook for Diageo.

Henderson Far East Revenue

A excessive yield is usually a crimson flag however it isn’t all the time so.

Henderson Far East Revenue (LSE HFEL) is an funding belief that additionally has a current file of rising its dividend per share every year, which is a key goal for the belief.

A 31% drop in its share price over the previous 5 years signifies that this UK share now yields 11.8%.

That’s unusually excessive and there’s a danger that financial volatility in Asia might damage firm earnings, making it more durable for the belief to maintain paying out dividends on the present degree.

It owns stakes in corporations like China Development Financial institution and Taiwan Semiconductor Manufacturing Co. If it retains investing successfully, a mixture of capital good points and earned dividends might hopefully assist the belief continue to grow its annual payout even from its already distinctive degree.