It has been a crazy start to the year for Nvidia (NASDAQ:NVDA) stock for multiple reasons. If investors had put £10k in the stock at the beginning of January, they would likely have felt confident that the sharp share price appreciation from the past year could continue. Reality doesn’t always play out that way, with some events hitting a stock hard out of nowhere.

In the red

Nvidia shares started the year just above $134, and it is currently at $120. This reflects a 10.6% fall over the space of just under three months. This means the £10k would currently be worth £8,940. Even with this, the share price is still up 32% over the last year.

At the end of January, the stock fell following the breaking news about DeepSeek. The AI model out of China caught headlines due to the reported low cost needed to build and train it. As a result, AI-related shares like Nvidia dipped lower, with investors concerned about the sky-high valuations previously being factored in.

After this move, another hit came later in February, when President Trump started making tariff threats. Nvidia has global exposure in terms of manufacturing and sales, so any tariffs with Mexico, Canada, China, or the EU would negatively impact operations. Even though nothing material has come into effect right now, the uncertainty around tariffs was enough to spook some investors.

Points to consider

Even though the unrealised loss in a short space of time isn’t great, it’s important to consider this relative to other benchmarks. For example, the Nasdaq index is down 8% over the same period. Fellow big tech names like Apple (down 13.8%) and Microsoft (down 8%) can also be used as barometers. When I look at this all together, I can see that Nvidia’s performance is broadly in line with the rest of the market.

Of course, no one can predict what will happen with tariffs, and I see this as a company-specific risk for Nvidia going forward. Rising competition in the sector is another concern some might have.

When I consider where things could go from here, it’s key to remember what caused the long-term rally in Nvidia shares to begin a couple of years back. It was the fact that it was at the front of AI innovation and development. I’d argue that this is still the case. The adoption of products and software still isn’t that high, with developments in the sector happening at a rapid pace.

I feel this means that the fall in the past couple of months is more of a blip rather than the end of the story. There’s a lot of potential for the company to still grow and deliver high profits for shareholders. So when I look at it with a long-term lens, I believe the stock is worth considering.

As an experienced investor, what I pick for my Stocks and Shares ISA is largely dictated by what I already hold.

For example, I wouldn’t buy FTSE 100 defence giant BAE Systems today, even though it’s going gangbusters, because I loaded up last year.

So while researching this year’s stock picks, I decided to call in AI, to ask what I should do if I was a newbie. I suspect quite a few ISA investors are doing that, but I’d urge caution.

Its first pick was Reckitt Benckiser

As ChatGPT admits itself, it’s not a stock picker. It also makes mistakes. But it’s still fun to play around with.

I asked it to suggest five FTSE 100 shares across five different sectors, offering a mixture of dividends and growth for the long term.

Its first pick was consumer goods and healthcare specialist Reckitt Benckiser (LSE: RKT). ChatGPT notes that it owns well-known brands like Dettol, Nurofen, Durex and Finish, and benefits from steady demand for hygiene, health and household products.

“This makes it relatively recession-resistant, while strong pricing power and innovation keep revenues growing,” it said.

This is true, although it isn’t the full story, which shows why it’s vital investors do their own research. Reckitt shares actually trade lower than they did 10 years ago, as the cost-of-living crisis hit sales and the board struggled with strategy and delivery.

To be fair, ChatGPT did point out that “competition from cheaper own-brand products is another risk, especially if consumer spending tightens.”

The Reckitt share price is up 20% in the last year though, plus there’s a trailing 3.89% dividend yield. It’s a decent portfolio building block, but investors should dig deeper than simply asking a robot.

ChatGPT then goes on name one stock I already own: insurance and asset manager Legal & General Group, praising its “high and sustainable dividend yield”.

Obviously, I can’t disagree with that, although again, I’d urge caution because earnings have been bumpy likely, and share price growth patchy.

My robot buddy then tipped Rio Tinto, saying the global miner should benefit from the green energy transition and pay strong dividends when commodity prices are high.

Rightly, it warns of volatile commodity markets and the Chinese slowdown. I think Rio is worth considering, but only with a minimum 10-year view, as the near term looks bumpy due to high interest rates and trade wars.

Decent spread of FTSE 100 stocks

My next robot pick is pharmaceutical giant AstraZeneca, the biggest UK company of all (where does ChatGPT get its inspiration from?!)

It’s hard to argue against this one, given solid long-term growth and dividends, and growth opportunities as humanity gets older and sicker.

I don’t agree with ChatGPT’s final pick, electricity and gas transmission giant National Grid. It’s been seen as a rock solid dividend growth stock for years, but as it prepares to invest £60bn in the green transition, it’s under more pressure than I like.

UK infrastructure projects usually run over time and budget, and I wouldn’t be surprised if National Grid was forced to repeat last year’s capital raise.

Other investors remain optimistic. Investing is a very personal thing. Artificial intelligence is fun, but no substitute for the real thing.

International Consolidated Airlines stock, or IAG (LSE:IAG) shares, fell around 2% in early trading today (21 March). This underscores concerns about the significant impact of Heathrow’s day-long closure, as British Airways, a key subsidiary of IAG, operates its primary hub at the airport.

A closer look

Heathrow Airport, the UK’s busiest — and the world’s fourth-busiest — airport has been forced to close for the entire day today. This follows a major fire at the North Hyde electrical substation in Hayes, west London, located approximately 1.5 miles from the airport. The fire, which broke out late Thursday night, caused a significant power outage, prompting the airport to suspend operations until at least midnight on Friday.

Over 1,350 flights have been disrupted, with many diverted to Gatwick, Paris Charles de Gaulle, and Shannon Airport in Ireland. Around 16,000 homes have been left without power, and residents have been advised to keep windows and doors closed due to thick smoke.

The closure has had immediate financial repercussions for IAG, which is also the parent company of Iberia, Vueling, Aer Lingus, LEVEL, IAG Loyalty and IAG Cargo. Heathrow is BA’s primary hub, and as the most active airline at the airport, it operates hundreds of daily flights.

With Heathrow handling over 83.9m passengers annually and a plane taking off or landing every 45 seconds, the disruption is significant. Analysts estimate that the cost of compensation and operational delays could impact IAG’s earnings by 1%-3% in 2025. The incident highlights Heathrow’s critical role in global air travel and the ripple effects of such disruptions on major airlines.

A pullback opportunity?

Over the past 12 months, IAG shares have surged by 79%. This was driven by a combination of resilient travel demand, strategic fuel cost management, and improved investor sentiment. The airline group capitalised on the post-pandemic travel boom. In Q3 2024, results showed a 7.9% year-on-year revenue increase and a 15.4% jump in operating profit. IAG’s disciplined capacity management, aligning seating capacity with demand, has supported pricing power, even amid economic challenges.

Cost management is one factor in IAG’s success. This includes its fuel hedging strategy, which mitigated volatility as Brent crude prices. By locking in lower fuel costs for up to two years, IAG is well positioned to weather fuel price volatility but also benefit if fuel prices stabilise at lower levels. IAG’s earnings could jump by 15%-20%, if fuel prices stabilise around $70-75/barrel.

Despite the rally, IAG remains undervalued compared to US peers, trading at just 5.5 times forward earnings. With a price-to-earnings-to-growth (PEG) ratio below one and expected earnings growth in the high single digits, the stock appears cheap. Additionally, IAG’s strong cash flow supports debt reduction and its dominant transatlantic market position, further enhancing its appeal.

However risks remain, including fuel price volatility, geopolitical tensions over Russian airspace, and a stagnating UK economy. Moreover, higher National Insurance Contributions and rising wages will likely put pressure on margins. Landing fees are also increasing.

I’ve recently been reluctant to add to my IAG position at the higher share price. But this recent pullback could be an opportunity. I’m going to explore it more closely before making a decision.

Earlier this month, shares in Greggs fell 11% in a day as the company reported weak like-for-like (LFL) sales. And it’s happening again with another FTSE 250 stock. 

JD Wetherspoon (LSE:JDW) is the latest company to drop sharply after reporting a slowing in LFL sales growth. But unlike Greggs I’m a buyer of this stock at today’s prices. 

Results

During the first half of its financial year, JD Wetherspoon’s sales grew 4% and earnings per share increased 83%. But investors need to take a closer look to see what’s going on here. 

One thing it’s important to pay attention to is the fact the company reduced its number of pubs from 800 to 796. This involved selling off six and opening two. 

In terms of profit, there were a couple of big distorting factors. One of these was an £11m increase in the value of the interest swaps the firm uses to hedge the debt on its balance sheet. 

In the context of just under £25m in net income, that’s a lot. But it isn’t a sign of strong pub sales and it’s not something investors can count on going forward.

Adjusting for this, profits increased by around 5% – roughly in line with sales. One of the big clouds hanging over the business, however, is the prospect of £60m in increased costs.

These are set to come from higher National Living Wage payments and National Insurance Contributions. The big question for investors is how – and whether – the company will cope.

Like-for-like sales

The key to surviving and thriving in a tougher trading environment is being stronger than the competition. And I think there’s good evidence JD Wetherspoon is in this position.

The company’s LFL sales growth for the 26 weeks to 26 Jauary came in at 4.8% – above the rate of overall sales. This was the result of the company reducing its pub count slightly.

That’s lower than it has been in previous years and might be a part of the reason why the stock has been falling. But this has already been reported in previous trading updates. 

It’s worth noting that the biggest gains were from fruit machines (+12.5%). By contrast, LFL sales from food (5.4%) and drinks (4.3%) were up more modestly.

Since then, the growth rate has increased to 5%. And at a time when LFL sales across the sector have been up 0.1% (January) and 1.7% (February) I think the result is pretty strong.

I see this as a strong sign that the value proposition JD Wetherspoon offers its customers is relatively resilient. And this puts it in a better position to cope with higher costs than its rivals. 

I’m a buyer

The next few months are going to be interesting for the business – and the hospitality sector as a whole. But expectations seem to be very low for the firm at the moment.

Given what I see as the company’s clear strengths and the falling share price, I’ve been a buyer of shares in JD Wetherspoon for some time. That’s why I’m looking to keep buying it.

The easyJet (LSE:EZJ) share price has underwhelmed lately. Since March 2020, it’s lagged behind the FTSE 250 as a whole, as well as trailing some of its industry peers.

For example, International Consolidated Airlines Group, the owner of British Airways, has seen its share price more than double over the same period. Jet2 is up over 150%. Having said that, it’s still managed to outperform WizzAir, whose stock market valuation has fallen by a quarter over the past five years.

But today (21 March) is a good day for those who owned the budget airline’s shares before they went ex-dividend on 20 February as the group’s paying its dividend for the year ended 30 September 2024 (FY24). All those on the register on 19 February, will receive 12.1p a share.

Based on a current share price of 482p, this implies a yield of 2.5%. This is a solid – if a little unspectacular – return. It puts it just outside the top half of FTSE 250 stocks.

Looking forward, the consensus of analysts is for a modest year-on-year increase. By FY27, the expectation is for a dividend of 16.45p. If this proves to be correct, the stock’s forward yield is 3.4%. Of course, it’s important to remember that payouts aren’t guaranteed.

Financial year	Forecast dividend (pence)	Implied yield (%)
2025	14.45	3.0
2026	15.92	3.3
2027	16.45	3.4

At the moment, the average yield for the FTSE 250 is also 3.4% so income investors seem unlikely to turn to easyJet to help boost their earnings. However, those looking to grow their capital and also receive a respectable dividend could consider buying the stock.

Let me explain.

A closer look

Since the pandemic, the airline has recovered strongly.

And yet the shares still appear cheap to me. The consensus of analysts is for earnings per share of 70.7p in 2025. This gives a modest forward price-to-earnings (P/E) ratio of 6.8.

With a similar mix of flights and package holidays, Jet2 is probably easyJet’s closest rival. It has a forward P/E ratio of 7.5. Okay, this isn’t a huge difference but if the two airlines were valued on the same basis, easyJet’s share price would be 10% higher.

Some analysts use the price-to-earnings growth (PEG) ratio to assess value for money. The airline’s PEG is comfortably below one, suggesting that the stock’s undervalued.

Financial year	Forecast earnings per share (pence)
2025	70.7
2026	75.0
2027	82.0

Pros and cons

The 19 analysts covering the stock appear bullish.

Their median price target for the shares, over the next 12 months, is 700p. That’s a premium of 45% to today’s price. Even at the bottom end of the range (570p-900p) there’s significant price growth potential. In fact, 15 of them recommend the stock as a Buy with the remaining six advising their clients to hold on to their shares.

But there are risks. Economic growth in Europe — easyJet’s core market — is looking increasingly fragile. If consumers find their incomes are being squeezed they tend to ditch city breaks and weekends away. And although the oil price has softened lately, this can be volatile and could have a major impact on earnings. Competition is also fierce.  

However, with EPS forecast to grow by over 10% a year up until 2027, a package holiday business that appears to be doing well, a strong brand and a respectable dividend, long-term investors could take a look at easyJet.

Investing in shares that pay dividends is a popular way for people to earn extra income. Even some well-known blue-chip UK shares offer a high dividend yield.

This is how much an investor would need to invest to target a second income of £700 on average every single month.

How dividends can provide passive income

Dividends are money a company pays to those who own its shares.

They are never guaranteed. So, even though some companies pay four or more dividends to their shareholders each year, others pay nothing. A company that has been a generous payer before can stop suddenly, for example because they are earning smaller profits or decide to use the money on something other than paying dividends.

The quick way to forecast what a share will pay is what is known as dividend yield. It is the amount an investor could expect to earn each year from a share, expressed as a percentage of what they pay for it.

However, as dividends are never guaranteed, neither is yield. So just zooming in on high-yield shares can be a fool’s errand.

Whether a share currently offers a high yield, modest yield or none at all, the issue an investor ought to consider before investing is what they expect the payout to be (if anything) in the future, based on the company’s financial prospects.

One income share I own with a great track record

For example, one of the UK shares I own is drinks maker Diageo (LSE: DGE).

The Guinness brewer has an excellent track record, having grown its dividend per share annually for over three decades. However, that does not mean it will keep doing so.

Younger consumers are buying fewer alcoholic drinks than earlier generations did. Diageo has been struggling with weak demand in Latin America, while globally an uncertain economic outlook could hurt sales of premium-priced drinks.

Still, with unique brands in its portfolio and a proven business model, I reckon Diageo is down but not out. It has dealt with shifting consume tastes for decades already and is massively profitable. I have no plans to sell my shares.

Setting an income target

Share price weakness means the Diageo yield is now 3.9%.

That is above the average for leading UK shares (the FTSE 100 offers a yield of 3.5% currently) but is still well below what is available from a carefully chosen portfolio of quality shares.

In today’s market, I reckon a 7% yield is attainable (if not guaranteed). To earn £700 per month of income on that basis would require an investment of £120K.

Rather than putting in a lump sum (which is an option), an investor could start today from nothing, invest £400 per month and reinvest (compound) the dividends.

Doing that, after 15 years, they could have a portfolio valued at over £124K. At a 7% yield, that would generate over £700 each month on average as passive income in the form of dividends.

Global equities have underperformed in 2025. At the heart of the weakness has been a sell-off in the ‘Magnificent 7’ growth stocks, which are some of the largest stocks in the market.

For long-term investors, I think there could be a major investment opportunity here right now. Here’s why I believe that now is the time to consider buying selected mega tech stocks.

Prone to volatility

The Magnificent 7 have all been phenomenal long-term investments. Over the last 20 years, these stocks have made investors a lot of money.

They do tend to exhibit volatility at times though. Every few years, these stocks seem to pull back 20% or more (we’re seeing this now with a few of them).

Amazing buying opportunities

History shows that these dips can be amazing opportunities to build wealth. By buying these growth stocks when they’re out of favour, investors can potentially generate fantastic returns in the following years.

Buying the dip has worked very well for me personally. For example, back in late 2018, when tech stocks were crashing, I bought into Apple for the first time. One year later, I was sitting on solid gains. Six-and-a-half years later, I’m sitting on massive gains.

Long-term growth potential

Looking ahead, I believe that most of the Magnificent 7 will continue to reward investors in the long run.

These companies operate in growth industries such as cloud computing, artificial intelligence (AI), digital advertising, and e-commerce, so they should continue to grow as the world becomes more digital.

Meanwhile, most have high returns on capital (meaning that they are very profitable), strong cash flows, fortress balance sheets, and share buybacks.

As for their valuations, they generally look attractive right now. With the exception of Tesla (which I continue to dislike as an investment due to its valuation) and perhaps Apple, they have attractive price-to-earnings (P/E) ratios relative to their growth.

Stock	Forward-looking P/E ratio
Microsoft	29.6
Apple	29.3
Alphabet	18.5
Meta Platforms	23.1
Tesla	87.7
Amazon	30.8
Nvidia	26.2

Growth at a reasonable price

One of them that stands out to me as cheap right now and worth considering is Alphabet (NASDAQ: GOOG) (the owner of Google and YouTube). It was trading near $210 in early February but can now be snapped up for around $165 – roughly 20% lower.

Today, Alphabet operates in a wide range of industries including digital advertising, cloud computing, AI, self-driving cars, and digital healthcare. So, I see plenty of growth potential both in the short term and the long term.

This year, Alphabet’s revenues are forecast to rise 11% to $389bn. Meanwhile, its earnings per share are forecast to jump 13.5% to $8.90.

Given that the stock currently trades on a P/E ratio of 18.5, I think there’s value on offer today. To my mind, we have growth at a reasonable price.

Of course, the big risk is internet search revenues. For 20 years, Google has had a monopoly on search. However, the way we search for information is now changing. And this adds some uncertainty.

All things considered, however, I like the risk/reward set-up. I think there’s a good chance that this stock will deliver attractive returns for investors over the next five to 10 years.

A Lloyds Banking Group (LSE: LLOY) share price of 80p would mean a rise of more than 10%. But what would it say about the valuation?

Well, it would push the forecast price-to-earnings (P/E) ratio for 2025 up to 12. That’s not much below the long-term FTSE 100 average, and it might not leave much safety room for the current economic outlook. And that, in case anybody hadn’t noticed, is not the best it’s ever been.

It could drop the forecast dividend yield down to 4% too. But the dividend is what’s kept us Lloyds shareholders going through these troubled years. And the prospect of a low yield could count against the chances of reaching 80p.

But this is all with only a short-term view, and broker forecasts for the next few years paint a considerably brighter picture.

Earnings and dividend growth

City analysts think Lloyds can grow its earnings per share (EPS) by 70% between the 2024 full year and 2027.

Now, that’s still more than two years ahead, and that can be a long time in the investment world. There’s potentially plenty of time for a stock market crash in there. But at the same time, who says we won’t fit in lower inflation and interest rates plus a return to economic growth? It has to happen some day, surely?

Anyway, earnings growth like that could drop the P/E as low as 6.7 by 2027. And if we see that, I reckon we could easily pass an 80p share price along the way. It would only lower the 2027 P/E to around 7.5. So by then, who knows, Lloyds shares might have already smashed through 100p.

Oh, the forecasters see the dividend growing more than 45% over the same period too.

Price target

There’s one thing the City experts aren’t doing right now though. They’re not forecasting an 80p Lloyds share price. Well, at least they’re not all doing so, with a consensus of just 74p. That’s only about 2.5% ahead of the current share price at the time of writing. And it’s a bit off-putting for those of us hoping for better.

To make things worse, the most pessimistic estimate sees the price plunging as low as 53p. That would be a 36% fall!

But there’s only one broker who thinks we should sell, outnumbered by seven of the 18 I can find who think we should buy the stock. And one of those reckons we could see 90p soon, never mind 80p.

Even with that wide range of visions, I see value in examining all the opinions we can find before we make our decisions. And use them to help us become better investors day by day.

What will I do?

I do think Lloyds could reach 80p if July’s half-time report says the right things. But the uncertainty means I won’t put any more money on it. No, I think I’ll stick with the majority of the forecasters and hold.

When it comes to dividend shares, my go-to market is the UK. It offers high yields and a wealth of high-quality, undervalued stocks to choose from.

But since I’ve largely tapped out most opportunities this side of the pond, I decided to look abroad.

Traditionally, the US is not as income-focused as the UK, so there are fewer companies with high dividend yields. Still, I thought it was worth having a look.

I uncovered three US dividend shares that can add a touch of diversity to an investment portfolio: United Parcel Service (NYSE: UPS), Healthpeak Properties (NYSE: DOC), and Macy’s (NYSE: M).

United Parcel Service

UPS is a global leader in the logistics of package delivery and freight forwarding. It has the second-highest dividend yield on this list, at approximately 5.5%, translating to an annual dividend of $6.56 per share.

The company has a commendable track record, increasing its dividend for 16 consecutive years, with an average annual growth rate of 16.91% over the past three years.

The history of consistent dividend growth exemplifies the company’s commitment to rewarding shareholders.

To support its dividend payments, it also enjoys strong cash flow. Projections for 2025 expect $5.7bn in free cash flow generated, supporting its dividend payouts and stock repurchase plans.

With a payout ratio of 97%, a significant portion of earnings is directed to dividends, potentially limiting reinvestment opportunities. It also faces potential risks such as weak parcel demand and increased competition, which could impact future earnings.

Healthpeak Properties

Healthpeak Properties is a real estate investment trust (REIT) specialising in healthcare properties.  The healthcare property sector offers potentially greater resilience against economic downturns, given the sector’s essential nature.

As a REIT, the company is required to distribute a significant portion of its earnings as dividends, equating to regular income for investors. It reported a dividend yield of 5.34% for its fiscal quarter ending in October 2024.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

REITs can be sensitive to interest rate fluctuations, which may affect borrowing costs and property values. This was evident by the declining stock value during 2022 and 2023.

Plus, like all REITs, its stock price is subject to real estate market cycles and economic conditions.

Macy’s

Macy’s is a renowned retail giant with a relatively good track record of dividend payments, barring a reduction during Covid. Currently, the yield stands at 5.4%, up from 3.3% last March. Its well-established brand and extensive retail presence provide a solid foundation for revenue generation.

It’s recently made concerted efforts to improve its online shopping experiences in a bid to capture a broader customer base. With a low price-to-earnings (P/E) ratio of 4.83, the price has significant room to grow.

The problem is, brick-and-mortar retailers like Macy’s face stiff competition from e-commerce platforms, which threaten sales and profitability.

These economic pressures — compounded by changing consumer behaviours — could hurt profits and limit Macy’s ability to maintain its dividend payouts.

Worth considering

I believe each of the above stocks is worth considering as they exhibit similar characteristics to the ones I would choose in the UK – strong market position, a steady income stream, and decent potential for growth.

As with stocks in any region, it’s important to check each company’s financial health, market position, and the broader economic landscape.

The latest dividend forecasts suggest that asset manager M&G (LSE: MNG) will remain one of the highest yielders in the FTSE 100.

The company issued its annual results this week (19 March), reassuring investors that its dividend remains a priority.

Since being separated from parent Prudential in 2019, M&G’s annual payout has risen from 18.2p in 2020 to 20.1p per share in 2024.

Last year’s payout gives the shares a trailing yield of 9.1%, highlighting its appeal as a big income stock.

The effect of such a high yield is that investors get most of their returns in cash up front, rather than through higher future growth. For investors seeking to maximise their income, this can be a big benefit.

M&G: latest dividend forecasts

M&G’s latest results confirm the company will continue to prioritise its dividend. It generated £933m of surplus capital last year, of which around half will be used to pay the 2024 dividend.

Looking ahead, management are now targeting £2.7bn of capital generation for 2025-27, together with increased cost savings. This suggests to me that the current dividend should continue to rise.

The latest dividend forecasts from City analysts confirm this view:

Dividends are never guaranteed and can always be cut. But in my view, there’s a good chance that an investor buying the shares today could be earning a 10% annual yield on their purchase cost in a few years’ time.

As part of a diversified portfolio of dividend shares, I think M&G could help investors generate a reliable, market-beating income.

The right time to buy?

M&G’s 2024 results looked fairly reassuring to me. Adjusted operating profit rose by 5% to £837m and the company’s Solvency II Ratio – a regulatory measure – rose by 20% to 223%. A higher number is better, indicating more surplus capital in the business.

Assets under management were broadly stable, rising by £2bn to £346bn over the year. I don’t think that’s a bad result, in a fairly difficult market for UK fund managers.

One aspect of this business that attracts me is its age. M&G’s history can be traced back to 1848, more than 170 years ago.

I like to invest in companies with long and consistent histories. I reckon that if a business has been doing something successfully for over 100 years, then it will probably be able to keep on doing it successfully.

Of course, things do change sometimes and leave older companies behind. One risk for active fund managers like M&G is the growth of the passive investing industry.

Cheap passive funds have taken a big chunk of investor money away from active managers. I don’t think that’s coming back.

Fortunately, M&G has a larger exposure to fixed income (bonds) and private assets. These are less affected by the growth of passive investing, which is mostly centred on shares.

Broker forecasts price M&G shares on 10 times 2025 forecast earnings, with a 9.4% dividend yield. That looks reasonable to me. For an investor with a focus on high income, I think M&G is worth considering as a possible buy.