Here’s how I’d target £130 per week in dividends from a Stocks and Shares ISA

A Stocks and Shares ISA can be a way to benefit from long-term appreciation in company valuations, if one makes the right choices. Along the way, though, an ISA can also be a powerful way to generate passive income. Imagine I had a £20,000 Stocks and Shares ISA and wanted to target an average weekly dividend income of £130. Here is how I would go about it. My first move would be having the money in a Stocks and Shares ISA ready to invest. Diversification is a simple but important risk management strategy. I would spread my ISA over 10 or so different shares equally to help achieve that diversification. What sort of shares would I be looking for? With long-term income as my goal, I would stick to proven blue-chip companies that have been consistently cash generative and I think could continue to be so. An example of such a share I own is British American Tobacco (LSE: BATS). The company owns premium brands such as Lucky Strike. That gives it pricing power. The market for cigarettes is huge and millions of customers buy regularly, even when the economy is doing poorly. British American is highly cash generative. That...

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