This is how an investor could point to a second monthly income of £ 1,027 investing £ 80 per week

A common way of obtaining a second income does not imply assuming a second job. Simply buying and possessing actions that pay dividends, hopefully, someone could gain a cash flow.

How much it depends on what they invest and on what actions. Not all shares pay dividends and some suddenly stop doing so. Therefore, diversification is important, and it is also to know about the actions one is buying.

From a permanent beginning and set aside £ 80 per week to invest, this is how an investor could point to a second income of More than £ 1,000 Every month on average.

Planting the seeds for future returns

I use £ 80 as an example here, although an investor could adapt the amount to his own situation. They are all different.

However, the principle is the same: entering a habit of regular savings can help build a capital base that can be used to buy dividend shares. With luck, the bases for future passive income flows will lay.

A good place to start could be looking at the different accounts of treatment and isas actions and actions in the market to see which one seems more appropriate.

More than £ 1,000 every month without working for it

The amount of income generates the approach depends on the size of the investment and the average dividend yield.

The yield is the amount gained in dividends annually, expressed as a percentage of the cost of the shares. So, a 5%yield, for example, means that for each inverted £ 100, the lucky investor would earn £ 5 in dividends annually.

Put £ 80 per week at 5% and reinvest the dividends, after 20 years, the portfolio would generate a second income of around £ 586 per month.

If an investor could achieve higher yield, say 7%, then that second monthly income would be approximately £ 1,027.

Find dividend shares to buy

Therefore, even a small difference in performance can make a big difference in the size of the second income.

However, higher yields can sometimes indicate greater perceived risks. See, 5% is already well above average Ftse 100 Dividend yield, while 7% is around double.

However, in the current market, I think it is possible for an investor to be oriented with a 7% yield while adheres to quality blue quality actions.

FTSE 100 Member Legal and general (LSE: LGEN), for example, has a historical brand that dates back to centuries, but continues as a financial power today.

Your market, financial services linked to retirement, is huge and I hope it remains. Legal & General has a large customer base and a proven business model.

He has increased his dividend annually in recent years and plans to continue doing so, although at a lower rate than before.

But past performance is not a guarantee of what can happen in the future: dividends are never insured. A business sale of USA.

However, I see it as a participation that an inverter must consider when aimed at generating a second income.