Jonathan Smith | Wednesday, 26th May, 2021 | More on: ^FTSE 4 passive income mistakes I’m trying to avoid with UK dividend stocks Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. jonathansmith1 has no position in any of the shares mentioned. 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. 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Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. UK dividend stocks provide me with a good opportunity to generate passive income. Yet I need to remember that with any investment, there are risks and common pitfalls. If I can minimise these as much as possible, it gives me the best opportunity to avoid unnecessary losses and expenses. With that in mind, here are several passive income mistakes that I want to avoid in advance.Passive income still needs effortFirstly, I want to avoid having the mindset that UK dividend stocks offer me guaranteed income. Hopefully, the stocks I buy will offer me a regular dividend stream over the coming years. But unlike a bond investor, there’s no contractual obligation for a company to pay out a dividend. The payment is usually made out of the profits from the previous year. Several companies had to cut the dividend during 2020 as a result of the pandemic.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I just need to be conscious that UK dividend stocks can vary the payment over time, and build this expectation into my planning regarding passive income.Another common mistake with ‘passive’ income investing is thinking that there’s no work involved at all. The income may be passive, but this this isn’t like buying an index tracker and I have to pick my stocks carefully. Obviously, there’s less work involved in UK dividend stock investments that in active buying and selling like a day trader. Yet there’s still some work involved.The main element I need to research and plan comes at the start. I need to pick the right stocks according to my dividend yield requirements and the company outlook. This can take a fair amount of time, and constitutes active work from my end. Once this is done, the maintenance is limited. Patience needed with UK dividend stocksAnother mistake that can crop up is the assumption that no rebalancing of my dividend portfolio is needed over time. This isn’t the case. Over the years, there are several reasons why I might need to buy and sell different UK dividend stocks.For example, I’ve already spoken of how dividends might be cut. In this case, I’d need to find a new company to invest in. Apart from this, I might find a new stock that I think offers me good passive income potential. In this way, I might be better off selling an existing stock for this new potential.Whatever the reason is, over time I will need to alter my portfolio. This is normal and I shouldn’t think that I’ve failed in my goal just because I need to tweak things.Finally, a common mistake I always have to be aware of is a desire for higher income in a short period of time. In other words, I want more and I want it now! I think many would share this desire as it’s human nature. Patience is the answer here. UK dividend stocks will pay out usually a couple of times a year. So it’s only with the passing of time that I can expect my income to accumulate.Overall, UK dividend stocks are a good investment option, but I do need to watch out for some pitfalls. FREE REPORT: Why this £5 stock could be set to surge See all posts by Jonathan Smith
HARLAN, Iowa – Xtreme Motor Sports IMCA Modifieds and IMCA Late Models both race for $1,000 to win at Shelby County Speedway’s Saturday, Aug. 29 Tiny Lund Memorial.The Modified feature is a qualifying event for the 2016 Fast Shafts All-Star Invitational ballot. Also on the card are IMCA Sunoco Stock Cars, Karl Chevrolet Northern SportMods and IMCA Sunoco Hobby Stocks chasing top checks of $600, $500 and $400, respectively.IMCA Speedway Motors Weekly National and Allstar Performance State points will be awarded in all divisions. Regional points will be given to Modified, Stock Car and Hobby Stock drivers.Entry fees are $50 for Modifieds and Late Models, $30 for Stocks and SportMods, and $20 for Hobbies. Entry fees can be mailed to the track office at 1003 Road M56 in Harlan, 51537.Pit gates open at 3 p.m., hot laps are at 5 p.m. and the mandatory pit meeting is at 5:30 p.m. Racing starts at 6 p.m.Spectator admission is $15 for adults, $10 for students and free for five and under. No promotional tickets will be accepted. Pit passes are $30.More information is on the www.racescs.com website.
Gladbach is fourth in the German league and was on course to qualify for a spot in next season’s Champions League. Gladbach CEO Stephan Schippers says the club and Bundesliga are in their toughest financial situation in more than 20 years because of lost revenue from tickets, TV and sponsorship.Gladbach played a game last week in an empty stadium. The club estimated it lost about 2 million euros ($2.16 million) in revenue by playing without fans.In Scotland, Hearts has asked all its players and other fulltime employees to accept a 50 percent pay cut, or contract termination.___The Olympic flame has been handed over, by proxy, to Tokyo organizers in Athens. The tour says Lange has no symptoms and is expected to make a full recovery while under quarantine at home in South Africa.The PGA Tour Latinoamerica is one of six circuits the tour runs. It says in a statement Lange’s diagnosis will allow the tour to alert those with whom he might have come in contact.Lange has played three events this year — two in South Africa in January and February, and Mexico two weeks ago.___Turkey has suspended its soccer, basketball and volleyball leagues because of the coronavirus outbreak. The coronavirus outbreak forced a bare-bones version of the usual elaborate ceremony in the stadium where the first modern Olympics were staged in 1896.The 80,000-seat marble stadium was empty apart from a handful of officials and participants. The Japanese delegation was absent because of travel restrictions and Tokyo organizing committee head Yoshiro Mori delivered a speech by video from Japan. But his message was upbeat.Mori says “I hereby pledge that on 24 July this flame will be lit at the Olympic Stadium in Tokyo.”Greek Olympic committee president Spyros Kapralos handed over the flame to a Japanese Unicef official in Athens and former Olympic swimmer Naoko Imoto. It was then headed for the airport to board the flight for Japan.___ The Latest: Monaco Grand Prix and 2 more races postponed Weightlifting’s long-standing problems with doping caused the IWF to demand top lifters competed more regularly at international events to be eligible for the Olympics — and to be subject to more doping tests. They were required to compete at least once between November and April.___Players from German soccer club Borussia Mönchengladbach have accepted pay cuts during the coronavirus pandemic.Gladbach sporting director Max Eberl says the players approached the club with an offer of voluntary pay cuts, and the coaching staff, directors and executives have joined in.Eberl says “I am very proud of the boys. A clear signal: we are standing together for Borussia in good and bad times.” Share This StoryFacebookTwitteremailPrintLinkedinRedditThe Latest on the coronavirus outbreak’s effect on sports around the world (all times local):___The Monaco Grand Prix is among three Formula One races postponed because of the coronavirus outbreak. The Dutch and Spanish GPs in May were also called off by governing body FIA.It is not yet clear when the first race of the season can be held.___The first player under the PGA Tour umbrella has tested positive for the new coronavirus.The tour says Victor Lange of South Africa was diagnosed with COVID-19 upon returning home to Johannesburg on March 9 from playing a PGA Tour Latinoamerica event in Mazatlan, Mexico. He was tested as a precaution while going to a non-virus related doctor’s appointment with a friend. Lange received the diagnosis on Tuesday. More AP sports: https://apnews.com/apf-sports and https://twitter.com/AP_Sports,Tampa Bay Lightning advance to face Dallas Stars in Stanley Cup finals, beating New York Islanders 2-1 in OT in Game 6 Youth and Sports Minister Muharrem Kasapoglu made the announcement after meeting with the heads of the three sports federations.The soccer league had been continuing without spectators after most other leagues in Europe stopped. Turkish soccer federation president Nihat Ozdemir had argued that the country was one of the least affected by the virus.Some players and coaches had complained about the league going ahead, expressing concerns for their health.Trabzonspor announced this week that it had “mutually agreed” to part with former Nigeria captain John Obi Mikel after the former Chelsea player said he did not feel comfortable playing amid the pandemic.___ Associated Press March 19, 2020 ___Soccer in England will stay suspended until at least April 30 because of the coronavirus outbreak and the season could be finished in June.The Football Association and Premier League say they have agreed to extend the suspension from April 4 to April 30. The FA board has waived a regulation which would normally oblige leagues to finish by June 1.That means the English leagues can continue playing in space that opened up when UEFA postponed the European Championship to 2021.The FA, Premier League and English Football League say they are “united in their commitment” that the season should be resumed. ___The International Weightlifting Federation says it has changed its Olympic qualifying criteria in response to the coronavirus outbreak but won’t say how the new system works.Olympic qualifying in dozens of sports has been thrown into chaos as continental championships around the world have been postponed.The IWF says it has drawn up a replacement set of qualifying rules and submitted them to the International Olympic Committee but it won’t tell athletes or national federations about the changes until the IOC signs off on the plan.The IWF says it has ruled out extending the qualifying period beyond April 30. That means any rescheduled continental championships won’t count. UEFA is giving European soccer clubs extra time and leeway to comply with financial monitoring rules during the coronavirus outbreak.UEFA says it has extended a March 31 deadline by one month for clubs to show they have no outstanding debts for taxes and transfer fees.The shutdown of European soccer has deprived clubs of match-day income and many risk getting less revenue from broadcasting contracts if games cannot be played.The “Financial Fair Play” system monitors at least three years of accounts for hundreds of clubs which qualify to play in the Champions League and Europa League. Clubs which fail to break even on commercial income and spending on transfers and wages risk sanctions which include being expelled from competitions in the most severe cases.UEFA says the established rules allow for unforeseen circumstances which “is taken into account as part of the clubs’ assessment on a case by case basis.” ___The Swedish soccer association says the start of the top professional leagues in the country have been postponed with the aim of playing again in late May or early June.The decision comes a day after a request from clubs in Sweden’s top two men’s leagues to delay the start of the season until the beginning of June because of the coronavirus outbreak.The season was due to start on the weekend of April 3-4.The federation says a detailed program of games will be presented after UEFA clarifies dates for rearranged European club tournaments.