Dividend strategies for passive income in the UK and Australia

Investors in the United Kingdom and Australia are evaluating different strategies to generate passive income through dividend-yielding assets.

In the UK, the iShares UK Dividend UCITS ETF, which tracks the FTSE UK Dividend+ Index, is highlighted as a way to access 50 high-yielding companies from the FTSE 350. The fund has seen a share price increase of approximately 20% over the last year.

In Australia, superannuation is noted as a potential vehicle for passive income to mitigate tax headwinds associated with direct share ownership. To generate an annual passive income of $24,000 (approximately $2,000 per month), the required portfolio size varies based on dividend yield: a 4% yield requires $600,000, a 5% yield requires $480,000, and a 6% yield requires $400,000. Washington H. Soul Pattinson and Co. Ltd is cited as a notable example of a company with consistent annual dividend increases since 1998.