Being a shareholder in Lloyds Banking Group (LSE: LLOY) must be a gratifying experience right now. The company’s stock has risen 37% in the last year and now its dividend is expected to grow. Analysts at Deutsche Bank said that given last year’s earnings, they expect Lloyds to spend £1bn on a new dividend and a further £1bn on share buybacks. With the bank’s full-year results expected to be released on Thursday, will all this good news boost the stock even more?

The Lloyds dividend

During the pandemic, Lloyds and other British banks were ordered by their regulator to halt dividend payments. Lloyds reintroduced its dividend last year, although at a far lower yield. I can see this as being a decision made out of caution, but it did little to incentivise me to invest. I’m sure shareholders at the time also had their grumbles.

Meanwhile, the company’s cash reserves continued to expand. When the financial system faces increased risks, banks are required to have a cushion of surplus capital to help sustain liquidity. However, I’m not a fan of banks holding large amounts of surplus capital, as history is filled with examples of their squandering it on ill-advised purchases. Instead, I prefer banks like Lloyds to give out extra cash as dividends to shareholders. The bank has declared that it has a progressive dividend policy, implying that it intends to increase its distribution in the future. That, however, is never certain.

Fiscal results are due

Lloyds should release its full-year results on Thursday. I anticipate a solid set of figures based on what we witnessed in the first three quarters. However, there are dangers. Because of the company’s large mortgage book, any collapse in the housing market might impact profitability. Inflationary forces, such as rising energy prices, might raise the predicted default rate among borrowers, reducing earnings.

I see these outcomes as unlikely. House prices have risen quickly over the past few months, and the end of winter will see a reduced reliance on fossil fuels. But the risk is there.

Lloyds will also publish its projected final dividend for 2021. I am positive about this, given its cash position and industry developments. For example, competitor NatWest stated yesterday that it will pay a final dividend of 7.5p per share, up from 3p last year. Lloyds’ yield would rise to 4% if it hiked its final dividend at the same rate.

Will Lloyds raise its dividend?

So will the bank raise its dividend? Despite all of the positive press, we won’t know what Lloyds’ dividend plans are until Thursday. While it will benefit from a slew of new investors buying in to make the most of the buyback I think it pays to keep expectations low for now.

There’s a good chance that the current share price has already priced-in the dividend increase. This could help to explain why the share price has risen so much in the last year. If expectations aren’t met, a small rise could even cause the stock to fall. A significant gain, would be more appealing to investors.

Still, Lloyds has proven to be a solid business that takes care of its shareholders in times of crisis. I’d be happy to add it to my portfolio once the dividend details are made public.

James Reynolds has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking 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.

Key points

• Revenue has increased slightly between the 2016 and 2020 calendar years
• The company is benefiting from a surging oil price
• There was free cash flow of $302m for the first six months of 2021 

UK-based oil and gas company Harbour Energy (LSE: HBR) operates in a number of countries around the world. These include Norway, Brazil, Vietnam and the UK. Formed out of the merger between Chrysaor and Premier Oil in April 2021, the firm is a FTSE 250 constituent. With a surging oil price and solid free cash flow, I want to know if I should be adding the business to my long-term portfolio. What’s more, do conditions indicate that the Harbour Energy share price will soon rise? Let’s take a closer look.   

Results and the Harbour Energy share price

While I eagerly await results for the 2021 calendar year, a glance at previous interim and annual reports adds some colour to this company. Between the 2016 and 2020 calendar years, revenue increased, albeit only slightly, from $937m to $949m.

Although this growth was small, it is not unusual for smaller oil and gas companies to have inconsistent results, given the nature of their work. Indeed, the firm recorded a $605m loss before tax for the 2020 calendar year compared with a $102m profit the year before. Much of this can be explained by the exploratory element of the oil and gas industry, when there is no guarantee that drilling for oil will actually yield anything.

In addition, the interim results for the six months to 30 June 2021 showed free cash flow at $302m. As a potential investor this gives me confidence, because the company has the resources to embark on further exploration. It may also choose to tackle its not insignificant debt pile of $2.6bn. With final results due on 17 March 2022, I will be watching very closely.

What role does the oil price play?

Investment in any commodity stock inevitably means some exposure to the movements of the underlying raw material. In this case it is mainly oil. Recently, the Harbour Energy share price has benefited from surging oil prices. Both WTI and Brent Crude oil are above $90 per barrel.

This has been caused by tightening supply, because of a cold winter in the US and the Organisation of Petroleum Exporting Countries (OPEC+) refusing to increase supply. It is worth noting, however, that another pandemic variant could once again push the oil price to much lower levels.

Harbour Energy produces oil with an operating cost of just $15.6o per barrel. With a post-hedged realised price of $58 per barrel, we can easily see that the firm is currently benefiting from rising oil prices. Given geopolitical conditions, I expect this to continue. 

Given that it is benefiting from oil prices, I do think the Harbour Energy share price could rise to some degree. In addition, its free cash flow can be put to good use in a number of ways. I will be buying shares in the company today. 

Andrew Woods 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.

British sports car maker Aston Martin Lagonda (LSE: AML) must be one of the most disastrous stock market flotations of recent times. The Aston Martin share price has fallen by 90% since its flotation in late 2018.

However, I can see some signs of hope. Sales of key models such as the DBX SUV are said to be on target. Aston Martin’s revenue rose to £1,095m in 2021. That was 12% above 2019 levels and 79% higher than in pandemic-hit 2020. Is now the time to buy into this storied brand, ahead of a wider recovery?

Targeting 50% sales growth

Aston Martin shipped more than 6,600 cars to its dealers last year. Executive chairman Lawrence Stroll hopes to increase this number to 10,000 cars per year by 2024/25. This could see sales double to £2bn a year.

Hitting this goal could lift Aston’s adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) from £138m in 2021 to £500m in 2024/25.

Stroll also says the company has started its “electrification journey” with the launch of a hybrid DBX in China. A plug-in hybrid is planned for 2024, with the first all-electric model due in 2025. By 2030, the company expects its sports, GT and SUV ranges to be fully electrified.

In the meantime, Aston Martin’s high-powered DBX707 SUV and updated V12 Vantage models are due to begin deliveries later this year.

What could go wrong?

These targets don’t sound unreasonable to me. But as a potential shareholder, I can see some risks. My big worry is that Aston Martin has far too much debt for my liking. In today’s 2021 results, the group reported net debt of £892m. That’s equivalent to leverage of 6.5 times EBITDA. My preferred limit is around 2.5x EBITDA.

The company’s loans aren’t cheap either. In 2021, Aston Martin’s paid out £117m in cash interest payments. This means almost all of the company’s adjusted EBITDA profit was swallowed up by interest payments.

My sums suggest Aston is paying an average interest rate of 13% on its debts. This tells me that lenders are nervous about the group’s high leverage and the risk of further problems with its loss-making operations. I’m nervous too.

Will the Aston Martin share price explode?

However, I’m encouraged by progress at Aston Martin. I think Stroll together with ex-AMG boss Tobias Moers are doing all the right things. Stroll’s 22% shareholding clearly gives him a strong incentive to stick with the business and complete a turnaround.

However, as an outside investor I’m not comfortable with the investment case for this UK share. Analysts don’t expect Aston Martin to report a profit until at least 2024. Meanwhile, the group’s debts and eye-watering interest payments are both expected to rise again in 2022.

For me, there’s too much financial risk here. A shortfall in sales or new product delays could trigger a cash crunch. Even if everything goes to plan, Aston Martin shares already look reasonably priced to me — not cheap.

I don’t think the Aston Martin share price is likely to explode any time soon, so I won’t be buying the stock.

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.

I’ve been watching Darktrace (LSE: DARK) since its shares soared to dizzying heights in 2021 after one of the hottest IPOs in years. At its peak, the Darktrace share price hit 1,003p. But things quickly turned to disaster, and the shares had fallen off a cliff by the end of the year.

The price is still up 40% from flotation, mind. That’s not as good as the 300% gains at the peak, but 40% in less than a year is otherwise a cracking return. And it’s good to see things picking up again, as the Darktrace share price gained 5% during morning trading Wednesday. So what’s happening? And am I looking at a new opportunity that I missed back at IPO time?

The latest uptick comes in response to news of a new acquisition. Darktrace, which bills itself as “a global leader in cyber security AI,” has bought Cybersprint, which it describes as “an attack surface management company that provides continuous, real-time insights from an outside-in perspective to eliminate blind spots and detect risks.“

What was that again?

I know what each of those words means individually. But strung together like that, all I can see is marketing. And I have a computer technology background. Still, the €47.5m price tag does bring it one concrete thing that I understand, in the form of an additional R&D centre in The Hague.

Chief executive Poppy Gustafsson also points out that “bringing inside-out and outside-in visibility together is critical.” And you can’t argue with that. Or, in my case, understand it. But putting aside the jargon, Darktrace is in a technology sector that could potentially be very lucrative.

Darktrace share price crash

To decide whether to buy at today’s price, I need to think about why things went so badly wrong last year. My colleague at The Motley Fool, Jon Smith, pretty much nailed that. The problems were twofold. One is that November marked the end of an initial lock-in period for early-stage investors. And with the Darktrace share price having soared so high, it’s hardly surprising that a lot of them wanted to pocket their profits.

A couple of key brokers were bearish on the stock too, still considering it overvalued in recent months. They also criticised Darktrace as having style over substance. I am a big believer in investing in companies I understand, with tangible products and services, and ideally already generating profits. Profits are not in the picture here yet, and I’m not seeing a great deal of tangibility at this stage.

Industry could be very big

But against that, I really do think the profits from advanced cybersecurity technology could be potentially massive. Darktrace looks to be one of the very few companies making significant inroads into the market. And the company is attracting definite interest from potential customers, who understand the technology better than I do.

One problem is that I don’t really know what might be a good entry level for the Darktrace share price. But I am still tempted to invest a small amount, because of the potential for the business. Not a retirement savings chunk, but maybe a bit of play money.

Alan Oscroft 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.

Whether it’s for retirement or simply to earn money while you sleep, building passive income streams is a key goal for many investors. My favourite way to generate passive income is buying dividend stocks in a Stocks and Shares ISA to maximise my potential dividend income beyond the £2,000 tax-free annual allowance. Here’s why I see Lloyds (LSE: LLOY) and BP (LSE: BP) as solid investments to earn passive income from the stock market in 2022.

Lloyds: the FTSE 100’s dark horse for passive income

Investing in dividend stocks carries a risk of capital erosion. The Lloyds share price has experienced mixed fortunes in this regard, gaining over 30% in the past year but declining by more than 25% over five years.

Current macroeconomic conditions should be favourable for the Lloyds share price. The Bank of England recently lifted the base rate to 0.5% to combat inflation and the bond market is pricing in further interest rate rises. Lloyds should perform well in this environment as it can charge higher rates for its loans, increasing profit margins.

Lloyds may not seem the obvious choice for passive income investors. Following a regulatory decision, Lloyds suspended dividend payments in 2020 alongside other FTSE 100 banking stocks. Lloyds has restarted dividend payments but, at a 2.42% yield, the stock trails the FTSE 100’s current yield of 3.48%. However, this could soon change with Deutsche Bank analysts forecasting a future dividend yield of 8-9% for Lloyds.

Lloyds is the UK’s largest mortgage lender. It has a limited international presence. Accordingly, the stock is more exposed to the health of the domestic economy and housing market than its competitors. As the cost of living rises, the potential spectre of mortgage defaults could hurt the Lloyds share price.

Despite these risks, I see Lloyds as a good passive income stock for 2022. I keenly await the bank’s full-year financial results, due on 24 February, which I hope will confirm my decision to buy Lloyds shares now.

The outlook for BP’s share price and dividends

Yesterday, Brent crude prices reached a seven-year high, exceeding $99 per barrel. Many analysts predict further oil price increases with Russia’s military presence in Ukraine acting as a catalyst. BP’s share price closely follows oil and this makes the stock one of my top passive income picks for 2022.

Despite a significant drawdown in 2020, the BP share price has regained positive momentum, climbing 43% over the past 12 months. BP’s current 4.1% dividend yield is just above the FTSE 100 average, but the company has forecasted a healthy 4% annual increase to its dividend through 2025. With a stated intention to deliver a further $1.5bn in share buybacks and an impressive distribution history, BP is hard for me to ignore as an investor seeking passive income.

The primary challenge to BP’s business remains the global transition away from fossil fuels to renewable energy. While BP has ambitions to become a net-zero company by 2050, it is difficult to see how future government policies to tackle climate change do not amount to an existential threat to the energy giant.

Nonetheless, with oil demand surging, promising dividend prospects, and impressive recent financial results, I consider BP to be a solid passive income stock to hold.

Charlie Carman owns shares in Lloyds. The Motley Fool UK has recommended Lloyds Banking 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.

The UK market is filled with dividend stocks that pay out handsome rewards. But every once in a while, a rare sight emerges. What if a dividend stock could also be capable of enormous growth? This week I’ve spotted two companies that I believe could do that, one of which is already in my portfolio. Let’s explore.

Of all UK dividend growth stocks, is this the best?

Somero Enterprises (LSE:SOM) is a company I’ve explored before. But as a reminder, this business designs and manufactures concrete-laying screed machines. That’s hardly the most exciting business out there. But by accelerating and partially automating a good chunk of the construction process, Somero has quickly become a leader within its space.

Over the last 12 months, the stock is up over 35%. And looking at its latest trading update, it’s not hard to see why. Total revenue for 2021 is expected to come in at around $133m (£98m). That’s 50% higher than a year ago and 49% higher than pre-pandemic levels. Moreover, underlying earnings are also anticipated to smash previous guidance, jumping by 83% to $48m (£35m)!

As growth goes, these are some pretty exciting figures. And topping it off with a 4.5% yield makes Somero Enterprises potentially one of the best UK dividend growth stocks to buy today. At least, that’s what I think.

Having said that, there are always risks to consider. While the business may have carved out a pretty wide moat against competitors, it can’t do much against the weather. Laying concrete in the rain compromises its strength. So, if the weather takes a turn for the worse, as recently, the group’s growth and dividends could become compromised as construction projects are delayed. 

The firm suffered through such a scenario in 2019. But while it will undoubtedly happen again in the future, management has a big chunk of cash at its disposal should bad weather interrupt operations. That’s why I still believe increasing my existing stake in this dividend growth stock could be a lucrative decision in the long run.

Becoming a landlord without a mortgage

Warehouse REIT (LSE:WHR) acquires and revamps dilapidated old warehouses in prime locations. It then rents them out to businesses like Amazon and Screwfix at a higher price, returning the profits to shareholders through a 4% dividend yield.

There are plenty of other UK stocks that offer a similar passive income. But what makes Warehouse REIT far more interesting, in my opinion, is its growth capability. 

With e-commerce adoption accelerated by the pandemic, demand for ideally placed warehouse space is surging. And consequently, the price per square foot is doing the same. So, I’m not surprised to see that in its latest half-year results, revenue and operating profits surged by 49% and 55%, respectively.

But it does come with its fair share of risks. The increase in demand hasn’t gone unnoticed by the competition. And as other warehouse operators seek to capitalise on the opportunity, supply might eventually meet demand, sending rental prices down.

Regardless, with e-commerce expected to continue trending upward, I don’t think the demand for prime-location warehouse space will disappear. That’s why I think Warehouse REIT could be one of the best UK dividend growth stocks to add to my portfolio today.

Zaven Boyrazian owns Somero Enterprises, Inc. The Motley Fool UK has recommended Somero Enterprises, Inc. and Warehouse REIT. 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.

Investor sentiment towards Rolls-Royce (LSE: RR) has been cooling, and the late 2021 surge has already fallen back. The Rolls-Royce share price is still up 14% over the past 12 months, in line with the FTSE 100. But at 120p, as I write, it’s still way down on the 150p levels it reached in November.

I’ve liked Rolls for many years, though I’ve never got round to buying any. So am I looking at a buying opportunity now? And what do I think will get the company back on the track to long-term growth?

There’s one thing I don’t expect to make much of a difference to the Rolls-Royce share price, and that’s full-year results for 2021. For one thing, it was a seriously unusual year with aviation so severely restricted, and it can’t be much of an indicator of the long-term future for Rolls. In addition, I don’t expect the figures to hold any surprises.

A Q3 trading update gave us the essential trends. The company achieved net cash inflow in the third quarter, but still expects to report free cash outflow for the full year. It should be better than the previous guidance of a £2bn outflow, but that will already be built into current investor expectations.

Other than that, it’s all about restructuring, disposals, and rebuilding the balance sheet situation. And the eventual result of that is surely the critical step in getting investors back on board.

Rolls-Royce share price sentiment

I think that’s becoming especially key, as I’m seeing a shift in investor’s attitudes. Over the past year, we’ve seen reactions to short-term news, buying in whenever there’s a hint of optimism, and selling when there’s a fresh Covid scare (or any other bad news).

But now, I reckon investors are settling back to a longer-term view again. And rather than chasing the Rolls-Royce share price, they’re more focused on the company itself.

That really has to be a good thing. Short-term upsets, as we’ve seen these past couple of years, do come along and can give us an opportunity to get in when shares are cheap. But I think that can only work if we understand the underlying value of a company and forget short-term share price movements.

As an example, I’ve looked at the IAG share price, which has fallen more then 80% since the pandemic started. Those focusing on share prices might see a great opportunity to get in before the recovery finally happens. But I reckon looking at the full valuation of the company tells a different story.

Long-term background

I’m also very aware that Rolls-Royce was facing difficulty even before the pandemic arrived. And it could still take some time to see how that’s being addressed. So will I buy now?

I do think there’s a solid chance the Rolls-Royce share price could end 2022 significantly ahead of today. But there’s so much uncertainty and I wouldn’t be surprised to see more short-term bearishness first.

So I’m going to resist the opportunism temptation. But Rolls-Royce is still very much on my list of potential long-term buys.

Alan Oscroft 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.

FTSE 100 stocks are a popular destination for many UK investors. After all, these established businesses often act as a safe haven against the fluctuating volatility of the markets, which seems particularly elevated recently.

In the last week, shares of Lloyds Banking Group (LSE:LLOY) and Glencore (LSE:GLEN) are the two most bought stocks, according to Hargreaves Lansdown. Why are they suddenly so popular? And should I be considering them for my portfolio as well?

The most popular of the FTSE 100 stocks is Lloyds

The sudden surge in popularity surrounding Lloyds shares isn’t much of a mystery. For years, it and other banks have struggled to generate a sizeable profit margin on lending activities. Why? Because interest rates have been so low. Now with inflation on the rise, the Bank of England has announced plans to push rates back up.

This may be horrible news for consumers, but it’s a dream come true for Lloyds. With profits expected to rise considerably and pandemic-related loan impairments seemingly a thing of the past, I’m not surprised that it’s one of the most popular FTSE 100 stocks to buy right now.

But even though the shares are up over 30% in the last 12 months, the group still has its risks. If Covid-19 decides to mutate again and restrictions are reintroduced, then these gains could just as quickly disappear. But this is ultimately a short-term issue. And with tailwinds on the horizon, I’m considering adding this stock to my personal portfolio.

Demand for metals is surging

Following on with the theme of inflation, I’m also not surprised to see Glencore take second place in the popularity contest. Mining is a primarily fixed-cost operation. So, when raw materials like metals start to increase in price, these gains translate almost entirely into profit for mining businesses.

Rising prices are further amplified by surging demand from the automotive sector, especially for renewable energy metals like cobalt, copper, and nickel. And Glencore mines all three.

Looking at its latest results, revenues jumped 43% in 2021, and underlying profits by 228%! Needless to say, as FTSE 100 stocks go, that’s an exceptional level of growth. And based on analyst forecasts, it’s expected to continue well into 2022.

While that certainly explains the sudden surge in popularity, there are some risks to consider. First and foremost, the surging commodity prices haven’t gone unnoticed by the competition. Investments in the discovery and development of new mining sites are on the rise as companies seek to capitalise on the favourable environment. Eventually, the supply will meet the demand. And when that happens, prices will naturally start to decline.

That will obviously be bad news for Glencore and its share price. However, I’m still tempted to add this business to my portfolio. Why? Because demand for battery metals isn’t exactly going to disappear any time soon, especially with the Western world beginning its transition to electric vehicles and renewable energy technologies.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking 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.

Please note that tax treatment depends on the specific circumstances of the individual and may be subject to change in the future.

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Building passive income is a great idea, in my view. It’s almost money for nothing because I don’t have to work overtime to earn it. It might sound too good to be true, but it’s certainly possible. With a catch. I do have to take some investment risks to start building passive income. My favoured strategy is by investing in dividend stocks. This is where I buy shares of a company that pays its shareholders a dividend, or a cut of the profits it generates. The risk is that I might lose more than I initially invested, because share prices can be volatile. Particularly, if the company’s profits fall.

But I still think dividend stocks are great way to generate passive income. Here’s how I’d do it starting with £10 a week.

1. Share dealing accounts and starting early

It’s important that I start saving early, and be consistent with my plan. That’s because £10 a week isn’t a great amount initially. So I would set up a direct debit and pay it into my share dealing account. This way, I wouldn’t forget.

Share dealing accounts charge fees, so I’d need to bear this in mind. Some also charge dealing fees, which is something else I’d need to consider.

The most important thing for me is to stick with my saving plan. Once I’ve built up, say £100, I’d start buying dividend stocks.

2. Diversification, and dividend stocks I’d buy

I would also need my portfolio to be diversified. This means I’m not buying only one company, or even different companies in the same sector. It would be easy for me to simply pick the highest dividend yielding stock, and just keep buying shares of the same company. But if it runs into trouble, the dividend would be cut. Even worse, the share price might crash and I’d lose some of my initial investment.

This happened recently at BP. The company paid a reliable dividend for many years, but when the oil price crashed in 2020, the dividend was cut.

Today, I’d buy shares in Aviva, Rio Tinto, and GlaxoSmithKline. Each company operates in a different sector, and the dividend yields are over 5%.

Any investment I make is always a balance of risk and reward. But as long as I fully research the companies before I invest, then I can make a decision on whether the investment is right for my portfolio.

3. Patience and passive income

Once I build up to £100 in my share dealing account, I’d start buying shares in the companies I’ve researched. It would therefore take 10 weeks for me to start building my passive income. This is why I have to be patient and allow my investment process to work over the long term.

Over the full year, I could have bought £520 worth of dividend stocks. If my average dividend yield across my portfolio is 5%, I’d earn £26 in passive income across the year. It’s not much to start with, but it really does build over time. Then, if I can increase my £10 to maybe £20 each week, my passive income could get a further boost.

Dan Appleby owns shares of Rio Tinto, GlaxoSmithKline and Aviva. The Motley Fool UK has recommended GlaxoSmithKline. 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.