Gemini, a rival to ChatGPT, suggested that the ideal passive income portfolio is subjective, tailored to individual financial goals and risk tolerance. It emphasized the importance of diversification in income streams for stability. Initially, it divided opportunities into Investment Income (e.g., dividend stocks, REITs) and Digital/Business Income (e.g., online courses). For a UK audience, Gemini recommended starting with low-cost, high-yield ETFs like the iShares UK Dividend ETF and selected individual FTSE 100 stocks, such as Legal & General and British American Tobacco. However, its interpretations lacked depth. Legal & General’s 8.7% yield raised concerns as its payout ratio was under one, indicating potential sustainability issues. Instead, I focus on growth investments for future dividends. For bank stocks, Arbuthnot (LSE: ARBB) stood out for its rising dividends and strong balance sheet, offering a secure forward yield of 6.1%, positioned conservatively with a loan-to-deposit ratio significantly lower than competitors like Lloyds.
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