I think Atlantic Lithium (LSE: ALL) could be a top penny stock to capitalise on the green revolution. More specifically, I believe profits here could soar as a global shortage of lithium persists and prices rise.

In 2022, for example, S&P Market Intelligence believes lithium demand will rise to 641,000 tonnes versus supply of 636,000 tonnes. The pace at which electric vehicle sales — and by extension demand for the critical battery material — are increasing means that the lithium market could remain in deficit well beyond this year.

Things are looking good for Atlantic Lithium, then, a company that operates the Ewoyya lithium project in Ghana. Drilling results from the asset have remained highly promising, a theme that has helped the penny stock gain 75% in value over the past year. Though remember that any setbacks in developing Ewoyya could send Atlantic’s share price down.

Another penny stock on my watchlist

I think auto parts builder Surface Transforms (LSE: SCE) could also help me make big returns this decade. The engineer isn’t a specialist in the field of electric vehicles, though. Instead it manufactures ceramic brakes that help high-performance vehicles stay glued to the road. It’s therefore well placed to capitalise on rising sports car demand.

Latest financials from Aston Martin underline how strongly sales of such vehicles are rising as the number of high-wealth individuals around the globe increases. The luxury carmaker said that it boasts “a healthy orderbook for all core vehicles” and that it plans to sell 6,600 vehicles via its wholesale channels in 2022, up 7% from last year’s levels.

Surface Transforms has experienced some production troubles of late due to issues at one of its newly-commissioned furnaces. Such problems are a constant threat to engineers like this that can hit revenues hard. However, I think the firm’s manufacturing expansion programme could in the long term help to supercharge profits as sports car sales grow.

The film star

You might not have heard of penny stock Facilities by ADF (LSE: ADF) before. This low-cost share only began trading on the London Stock Exchange in January. But it plays a crucial role in bringing our favourite films and TV shows to the screen. Put simply, it rents out specialist vehicles and trailers that are critical in the production process.

We’re talking about mobile make-up rooms, costume trailers and production vans, that sort of thing. And today the business is thriving thanks to “continued robust demand for film and high-end television” in the UK. In fact it advised in February that profits would beat expectations in 2021 thanks to a strong end to the year. Equipment failure is an ever-present risk that could damage future sales, but as things stand, business is going swimmingly.

And I think it could prove a highly lucrative pick for the long term as investment in British TV and film production heats up. Amazon, for example, has just signed a multi-year contract to make programming for its Prime streaming service at Surrey’s Shepperton studios in the latest example of this trend.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon. 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.

Key points

• Top UK tech stock movers included semiconductor and cyber security specialists
• One recent IPO was forced to cut its profit guidance
• A popular consumer brand looks expensive to me

UK tech stocks didn’t escape February’s market sell-off. But there were some big winners too.

February’s top UK tech risers

The share price of semiconductor materials specialist IQE rose by more than 30% in February, making it the top UK tech stock riser with a market cap over £50m. February’s gains continued a rally that started in January, when IQE said its 2021 results should be in line with November’s reduced forecasts.

I’m reassured that IQE hasn’t issued another profit warning. But IQE’s share price is still down by 45% compared to one year ago. However, new chief executive Americo Lemos has now started work and seems determined to return the business to growth. IQE has performed well in the past. I think it might be worth me watching.

Other top tech risers in February included recent IPO Microlise. This transport management software specialist released a solid trading update at the end of January, confirming that the group’s 2021 results should be in line with expectations. I think this could be an interesting business. But the shares look too expensive for me on 45 times forecast earnings.

One other winner that caught my eye was cyber security specialist Darktrace, which gained around 10% in February. Darktrace didn’t release any financial results during the month but did report a new “million-dollar deal” with “a multinational electronics corporation”.

Darktrace also went on the acquisition trail last month. It paid €47.5m for Dutch firm Cybersprint, which is an “attack surface management company”. I reckon Darktrace remains interesting for me to watch, but hard to value.

UK tech stocks that fell in February

The biggest faller in the UK tech sector last month was recent IPO Made Tech, which provides technology services to the public sector. Unfortunately, the shares fell by 55% last month, despite the company reporting a 131% rise in half-year revenue. 

The problem was that these results came with a warning that full-year profits will be lower than expected. Management said this is due to staff recruitment costs rising sharply. As a result, broker earnings forecasts for the current year have been cut by around 25%. I wonder if this business is trying to expand too fast. One for me to watch, perhaps.

Some of the other big fallers in February in the tech sector included consumer review website Trustpilot and LED lighting specialist Luceco. Both were down by around 20% at the end of the month, although neither company issued results during the period.

Luceco warned of tougher market conditions in 2022, but the shares look decent value to me at current levels.

I’m not so sure about Trustpilot. This online business is still loss-making and looks expensive to me. Its market cap of £616m is nearly five times 2021 forecast sales. Admittedly, sales growth has been strong. Trustpilot could grow into its valuation over the next couple of years. But the risk/reward balance doesn’t look attractive to me at current levels.

Roland Head 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.

It’s possible to build a future passive income by investing as little as £25 a week.

But investing what may seem like a small amount could lead to a meaningful income later. Of course, there are many ways to build passive income. But my preferred option is to buy stocks, shares and instruments backed by equities, such as funds.

Work/life balance

For me, it’s important that the building stage is as passive as it can be as well. I’m not keen on the idea of rolling up my sleeves and working too hard to build my income streams.

One reason for that is I want to keep a healthy work/life balance. And for me that means the life outweighing the work. But another reason is the often quoted wisdom that hard work alone is unlikely to make us rich. It’s often far more productive to aim to work smart.

And investing in stocks and shares can be smart if it’s done sensibly. It’s also possible to approach the activity with less hands-on effort than other ways of building passive income. For example, owning and renting out property, which can lead to lots of work.

Indeed, with stock-backed investments and a balanced approach to risk, it’s possible to harness the power of compounded gains. And that means allowing the businesses behind shares to do the heavy lifting when it comes to building wealth.

But it may seem like a risky time to invest in the stock market with all the current uncertainties in the world. However, billionaire investor Warren Buffett pointed out that America’s broad S&P 500 index of stocks has achieved annualised gains of around 10% a year for decades. And his advice to most investors is to simply invest regularly in a tracker fund that follows the market, whatever share prices are doing. And to then let time work its magic on the process of compounding.

A spread of investments

I think that’s a wise strategy and it’s part of my own investment routine. I put money into a range of low-cost, index tracker funds every month. For example, I’m investing in trackers following the FTSE 100, the FTSE 250 and small-cap indices in the UK. And I’m investing in the S&P 500 and small-cap indices in the US as well as others covering emerging markets around the world.

But to make sure the process of compounding is under way, I’ve also chosen the accumulation version of my funds. And that ensures dividend income is automatically reinvested into the trackers. One day I’ll want to switch to the income versions of the funds and begin to harvest passive income, but that’s for later. Right now, I’m interested in building my fund.

I’m also investing in the shares of selected individual companies with the aim of generating higher returns. Although outcomes are never certain on the stock market and I may not achieve higher returns in reality. But although I choose to work a bit harder and invest in individual stocks, it isn’t essential for aiming to build a passive income with £25 a week. Tracker funds will likely serve me fine over time, just as Warren Buffett recommended.

Kevin Godbold 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.

I’m on a quest to find the best-value FTSE 100 stocks to buy. Here are two cheap blue-chip shares on my radar right now.

Too cheap to miss?

The pressure on UK consumers is rising as the cost of essential goods goes through the roof. According to researcher Kantar the price of groceries in Britain rose 4.3% in February. That’s the fastest rate of growth since autumn 2013.

In this environment shoppers will have to become savvier when it comes to stretching their shopping budgets. And this bodes well for Associated British Foods (LSE: ABF) and in particular its Primark division. I expect demand for the low-cost clothes it sells to pick up strongly as people switch down from more expensive clothing brands.

Associated British Foods isn’t immune to soaring inflation itself. Increasing input costs are a problem for its food and ingredients business as well as at Primark. But over the long term, I believe the benefits of owning this stock could outweigh the risks. The value retail market was already tipped to grow strongly before the recent inflationary surge. And the FTSE 100 firm’s announced plans to turbocharge global expansion at Primark to fully exploit this retail trend as well.

City analysts think Associated British Foods’ profits will soar 73% this fiscal year (to September 2022). This leaves it trading on a forward price-to-earnings growth (PEG) ratio of 0.2, well inside bargain territory of 1 and below. As a value investor, this looks too good for me to miss.

A FTSE 100 dividend stock on my wishlist

I also believe HSBC Holdings (LSE: HSBA) offers stunning bang for my buck right now. Forecasters think earnings at the Asia-focused bank will rise 8% year on year in 2022. This leaves the company trading on a modest price-to-earnings (P/E) ratio of just 9.9 times.

What’s more, HSBC also provides better dividend prospects than much of the FTSE 100. The yield here sits at a meaty 4.3% for this year, well above the broader Footsie average of 3.6%.

Plenty of UK shares face significant disruption following recent tragic events in Ukraine. In this respect HSBC is no exception. Some Asian countries it services (like China) have economic ties to Russia and so stand to lose out as economically crippling sanctions are imposed on Moscow. That being said, I’d be prepared to accept this risk given the cheapness of HSBC’s shares.

In fact I’d buy the FTSE 100 bank as the long-term profits outlook here remains robust. Financial product penetration in Asia remains quite low compared to in the West. At the same time, wealth levels in these emerging markets are tipped to keep rising strongly. It’s a combination that has led ratings agency Fitch to predict loan growth of 12% in China this year alone.

I think HSBC, with its wide wingspan across Asian territories is well placed to exploit this market opportunity. And I think it could make me some fat returns in the process.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods and HSBC Holdings. 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.

The ability to make decent money with very little effort is what makes stocks such an attractive investment class to me. UK share markets are packed with top companies that have a great record of delivering excellent passive income streams. The post-Covid economic recovery means that the opportunity to find attractive dividend-paying shares is improving too.

Here’s a top FTSE 250 dividend stock I think could help me make a terrific passive income over the next decade at least.

Shipping giants shun Russia

Russia’s decision to invade Ukraine is already creating problems for the global economy. Moves to isolate Russia are gaining momentum and today two of the biggest shipping firms have announced drastic action of their own. Both MSC and Maersk — the world’s two biggest container shipping lines — announced plans to cease deliveries to and from Russian ports in response to recent sanctions.

More shipping firms could follow suit as the tragedy in Ukraine unfolds. And it threatens to take a bite out of profits at Clarkson (LSE: CKN), a giant in the shipbroking space and a provider of maritime financial services.

Still a top buy

It’s my belief, though, that Clarkson’s profits could still rise strongly in 2022 and beyond, enabling it to keep growing dividends at a terrific pace.

As I say, the restrictions being slapped on Russia threaten to have far-reaching effects, so the risks of owning Clarkson have undoubtedly risen. But the shortage of shipping vessels is so vast that I think the brokerage could still deliver decent earnings growth. Indeed, Clarkson has made a habit of lifting profits guidance in recent months as shipping rates have improved.

There’s a good chance that this supply and demand imbalance will take years to solve, too, given the post-pandemic economic recovery and a dearth of new ship orders in recent years. As a long-term investor, then, Clarkson has plenty of appeal for me right now. And especially as someone who’s currently looking for the best passive income shares to buy.

A top stock for a passive income

You see, Clarkson’s strong record of cash generation has allowed it to raise annual dividends every year for almost two decades now. It’s a record that City analysts expect to continue rolling as well. For 2022, Clarkson is expected to pay a total 89p per share reward. This is up sharply from the 84p payment analysts forecasted for last year. A 95p dividend is being predicted for 2023 as well.

Pleasingly, the shipbroker’s projections also create yields that far exceed the 2.3% FTSE 250 average. These clock in at 2.7% and 2.9% for 2022 and 2023, respectively.

Today, Clarkson trades on a forward price-to-earnings (P/E) ratio of 20.8 times. This doesn’t exactly make the stock cheap. And this means that the broker’s share price could reverse sharply if fears over the global economy grow. Still, as a long-term investor I’d be happy to take this risk. And especially when I consider Clarkson’s history as a top passive income stock.

Royston Wild 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.

There has been high volatility in global stock markets in the last week as the world digests news of Russia’s invasion of Ukraine. This market volatility provides the perfect opportunity for me to buy financially sound companies at bargain prices to buy and hold for the future. These two cheap UK shares provide this perfect opportunity.

A cheap UK share with strong foundations

FTSE 250 constituent and UK housebuilder Bellway (LSE:BWY) reported promising figures in a recent trading report. Bellway saw a record completion of 5,964 homes in the six months before January 31^st 2022, while the average selling price rose by 2.8% to £311,800. It would be rational to expect the share price to have reflected this positive outlook over the last few months, but the opposite has occurred, with the share price down 20% in the last six months.

With the stock trading at a price-to-earnings (P/E) ratio of 8.8 and with a low price-to-book (P/B) ratio of 1.1, I judge the market to have undervalued this FTSE 250 stock. Bellway’s solid and rising dividend of 4.2% and a minimal debt-equity ratio of 4% make me feel even better about these shares.

Another cheap FTSE 250 housebuilder

Vistry (LSE:VTY), another cheap UK-based housebuilder, has performed similarly over the last few months and shares similar strong fundamentals to that of Bellway. A low P/E ratio of 10.5, a P/B ratio of 1 and a strong 4.1% dividend yield indicate to me that the price has further to rise to meet the share’s true value.

Vistry shares fell earlier in the year on the news that housebuilders were going to have to foot the bill of resolving the flammable cladding crisis in the UK, and the stock has never fully recovered. While this will be a considerable upfront cost for the company, it will not impact future finances and I believe that the company should be unaffected in the long term.

Why UK housebuilders?

I believe investors have overlooked housebuilders in the last few years as they turn to flashy growth stocks that promise more than they can deliver. As a result, these companies with strong fundamentals have been shunned by investors and kept at bargain prices.

Demand for housing in the UK has been strong over the last few years as workers work from home more post-pandemic, and it seems resistant to the current impacts of Russia’s invasion of Ukraine. Alongside all this, the Bank of England may scrap affordability tests for mortgages, which could increase the demand for mortgages and housing in the UK and raise house prices further – benefitting housebuilders, of course.

There are legitimate concerns that an increase in inflation would force further interest rate increases and make mortgages more expensive in the UK. If this was the case, house prices would likely fall, and housebuilders would be impacted negatively.

Despite this, I believe the opportunity outweighs the risks of these two cheap UK shares and I’m investing in Vistry and adding to my Bellway position with my next available chunk of savings!

Finlay Blair owns shares in Bellway. 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.

The past 12 months have been positive for the FTSE 100. The UK’s blue-chip index has gained an eighth (+12.5%) since 1 March 2021. Adding cash dividends of up to 4% boosts this return to around 16.5%. What’s more, the Footsie has actually beaten the S&P 500 over this period. The main US market index has climbed 11.7% in 12 months. Adding dividends of around 1.4% takes the total return to roughly 14.1%. Thus, after more than a decade of underperformance, London is finally beating New York. Even so, I see plenty of cheap shares hiding in the FTSE 100 today. Here are five stocks that I don’t own that have crashed spectacularly over the last 12 months.

Footsie fliers and failures

Over the past 12 months, 65 of the 100 shares in the FTSE 100 Index have risen in value. Gains among these 65 winners range from 78.4% to 0.4%. The average increase across all 65 gainers is 22.4%. (All figures exclude dividends). At the other end of the scale lie 35 losers. Losses among these fallers range from 1% to 80.8%. The average fall across all 35 FTSE 100 flops is 17.6%. To me, these laggards include many cheap shares. However, they also include some fearfully risky and volatile stocks that I plan to steer well clear of.

The FTSE 100’s five biggest flops

These are the FTSE 100’s five biggest fallers over the past 365 days:

As you can see, losses among these FTSE 100 failure range from over 34% to more than 80%. The two worst performers — Evraz and Polymetal — have both imploded because they share the same boat. As I warned last Friday, both are Russia-focused mining groups. Evraz is a major global steelmaker, while Polymetal mines gold and silver. Based on current fundamentals, these cheap shares appear to be incredible bargains. However, they are uninvestable to me, simply because the bulk of their business is done in Russia. In my mind, anyone buying these crashed shares today would need nerves of titanium, never mind steel.

The three remaining businesses are all UK firms. Ocado Group is a technology-driven retailer with partners around the world. However, I’m not convinced by its business model, as I warned recently. Although this stock has rebounded by 10.4% since 8 February, I will avoid Ocado for now. I’m also not a big fan of asset manager Abrdn, formerly known as Aberdeen. Despite more than halving (-54.5%) over the past five years, I’m not tempted by this stock. Indeed, spending millions to rebrand by removing the vowels from its name was one huge red flag for me.

Cheap shares? Not exactly…

The third UK share is London Stock Exchange Group, a leading operator of stock exchanges in Europe. As I noted recently, athough the LSEG share price swooned in 2021-22, I look beyond to see a solid underlying business. At its all-time high, the LSEG share price hit 10,010p on 16 February 2021. As I write, it stands at 6,426p, down 3,584p (-35.8%) from the peak. This values the fintech group at £36.1bn. Although these are not cheap shares based on currently elevated fundamentals, I see a bright future for this firm. Over five years, this stock has more than doubled (+106.2%). I don’t own this share, but I’d buy at current levels. And then I’d hope that global stock markets rebound in 2022-23, rather than keep sliding!

Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Ocado Group. 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.

Shares in electric vehicle (EV) company Lucid Motors (NASDAQ: LCID) are down heavily today on the back of the company’s Q4 2021 results. There were certain things in the results that the market didn’t like.

I’ve said before that Lucid has some really nice EVs (its Air model won the 2022 MotorTrend Car of the Year award) that could potentially help the company capture market share from Tesla. Has today’s share price fall created a buying opportunity for me then? Let’s take a look.

Why Lucid’s share price is down today

Looking at Lucid’s Q4 results, it’s not hard to see why the stock is down today.

For starters, guidance for 2022 was reduced significantly. Previously, Lucid was expecting to produce 20,000 vehicles this year. However, it has reduced its guidance to between 12,000 and 14,000 vehicles, due to supply chain constraints and component quality issues. This is obviously very disappointing as it means that revenues for 2022 will be far lower than investors had been expecting. 

Secondly, Lucid said that it will delay its second vehicle, an electric SUV called Gravity, to the first half of 2024. This was initially expected in 2023. CEO Peter Rawlinson said the delay is to refine the product, and provide more time to implement best practices from the launch of its first vehicle.

At the forefront of the EV revolution

There were also plenty of positives in Lucid’s results, however.

One was that customer reservations now exceed 25,000 units, reflecting potential sales of more than $2.4bn. That’s up from 17,000 units in November. This suggests that demand for the company’s EVs is high at present.

Another was that Lucid confirmed plans to build its first international assembly plant in Saudi Arabia. This is expected to begin production in 2025. The group believes this plant will help it achieve capacity of 500,000 in the years ahead. 

Additionally, management seemed very confident about the future. “We are at the precipice of a global transition toward electric vehicles, and Lucid, with our leading technology and design, is at the forefront of one of the most significant transformations in mobility in generations,” said Rawlinson. “We remain confident in our ability to capture the tremendous opportunities ahead given our technology leadership and strong demand for our cars,” he added.

This confidence from the CEO is very encouraging, in my view.

Should I buy Lucid stock now?

As for whether now is a good time to buy Lucid stock, however, I’m still not convinced that the valuation is attractive.

Even after today’s share price fall, Lucid still has a market cap of around $40bn. That strikes me as high for a company that has only produced around 400 EVs to date and is having some production issues. 

And I’m not the only one who sees the valuation as high. Morgan Stanley analyst Adam Jonas, for example, has a $16 price target on the stock. That’s much lower than the current share price.

Meanwhile, short sellers clearly believe the valuation is too high as well. At present, around 137m Lucid shares are on loan. That represents about 25% of Lucid’s free float – a very high level of short interest.

Given the high valuation, I’m going to leave Lucid stock on my watchlist for now.

All things considered, I think there are better growth stocks to buy at the moment.

Edward Sheldon has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesla. 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.

Dividend stocks can be a great way of generating passive income. Buy the stock, hold onto it, and watch the dividends flow in. Literally making money while I sleep. Reinvest the dividends and the passive income compounds over time. I’m always on the lookout for stocks that pay dividends to add to my portfolio. Here are three that I’m looking at in March:

Kellogg

The first dividend stock that I’m watching in March is Kellogg (NYSE:K). The stock has a dividend yield of around 3.5% at the time of writing, but dividend isn’t just about looking at yields. It’s about looking at the underlying business, and I think the business at Kellogg’s is in decent shape. Rising input costs due to high commodity prices and supply chain shortages are a threat at the moment, but I think that Kellogg can weather the storm and provide a reliable dividend.

Kellogg is best known for its cereal brands, but about half its revenue these days comes from its range of snacks (Pringles being the most prominent). The company has entrenched relationships with retailers, which helps protect its competitive position and its management has been investing in its brands, which I view as wise. I’m very interested in buying this stock, priced at around $60.

British American Tobacco

The second dividend stock on my radar is British American Tobacco (LSE:BATS). The usual view on stocks like this one is that they have attractive economics but a diminishing market. So an investment comes down to whether or not there’s enough left in the market to justify the current price. I agree with half of this. I agree that the economics of smoking are attractive, but I don’t think that the market is diminishing. While it’s true that smoking is less prevalent, the number of people who smoke has increased steadily since 1990. 

The drawback to British American Tobacco is that it generates the majority of its revenue outside the geographic regions where the number of smokers is increasing the fastest. But I think the global growth of smoking goes some way toward explaining the company’s steady revenue growth over the last decade. The company currently pays a dividend with a 6.5% yield and I think it might well continue to do so. 

Polaris

The last stock on my dividend stock list for March is Polaris (NYSE:PII). The company designs and manufacturers off-road vehicles. With a 2.1% yield, this isn’t the most obvious stock to include here. But I think the company’s investment proposition might be attractive to me as an investor seeking passive income going forward.

At the moment, Polaris is battling a collection of headwinds. Supply chain disruption, cost inflation, and a slowing global economic environment are all pushing against the company’s sales. But I think that this is reflected in the stock price and these headwinds won’t last forever. 

The risk for this investment comes from uncertainty around how long these headwinds will persist. I think, however, that the market is currently overreacting to a difficult macroeconomic situation for Polaris, so this might be a good time to pick up shares in a strong company that is a reliable source of passive income.

Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco. 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.