Do you want a passive income of £ 1,000? 2 Actions to consider buying with a global sum of £ 20k

Generating considerable passive income is a popular dream. Many investors dream of taking a cash part, investing it in some high performance actions and building a sustainable financial future.

With that in mind, here are a couple of great dividend payers that could convert a global sum of £ 20,000 into an annual income flow of £ 1,000.

High performance asset administrator

M & g (LSE: MNG) It is an action that is worth considering dividends. The well -known savings and investment firm provides pension management services, insurance and customer assets.

The company has a solid history to pay profits to shareholders and currently has a dividend yield of 9.6%. That is almost triple the average of 3.5% throughout the Ftse 100 index.

It has a cost, with a ratio to profits (p/e) of 29 that is almost double that of the feet. The recent net outlets of customers increase the risk of a lower asset base and competition in the asset management business is dropper.

If M&G sees more outings, that could seriously reduce its asset base and its potential future profitability (and dividends!).

An investment of £ 10,000 to the performance of February 5 could generate £ 960 in annual dividends. That is a large part of money and that hungry investors should consider, given the dividends prior to the average offered.

Progressive Dividend Payer

Phoenix group (LSE: Phnx) is another consistent dividend payer. The life insurer and the asset manager have established a reputation to return in cash to shareholders through significant distributions. That continues today with the action that currently has a 10.3% dividend yield while writing on February 5.

The impressive figure is backed by Phoenix's ability to generate significant cash from policy premiums and management rates. With around £ 290 billion in assets under administration, that represents a large number of premiums.

One thing I like about the company are its strong cash flow forecasts. In fact, management expects to generate £ 4.4 billion in cash during the three years to 2026. Add a healthy solvency capital relationship of 168% to start and have the foundations of a solid dividend stock.

This gives me some confidence in short -term distributions. However, there are also longer -term risks. The regulatory changes, the consolidation of the industry and the unexpected changes of responsibility are just some.

Life insurers are also subject to the risk of longevity. This is the risk that people live more than expected and that the insurer must pay more money, which drives profitability.

This, combined with a solid dividend history, means that Phoenix is ​​one for investors who build a passive income to consider. That said, a higher interest rate environment could harm Phoenix. This is because the level of financing of the insurance plan can change as interest rates change, which means that unexpected changes in the interest rate are a risk.

To go

These are just a couple of high performance dividend shares that have a history of generously paying shareholders. While there are risks, including the environment of high interest rates and possible exits, M&G and Phoenix are two of the highest performance in the foot.

That for me says it is worth considering so that investors want to generate sustainable passive income as part of a balanced portfolio. Diversification is an important part of long -term investment to mitigate risk and remove ups and downs from the stock market.