I’ve invested in these two UK shares for their passive income promise

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Warren Buffett, the world’s most successful investor, believes that passive income is the key to wealth. He said, “If you don’t look for money before you go to sleep, you will work until you die.”

They mean that if I make the right investments, my money will never sleep. I can benefit from regular dividends which are then reinvested to build income in the long term.

However, for success I need a strong foundation, in the form of stable and safe stocks. There’s no point in chasing a 10% dividend yield only to find that the stock price has dropped 50% over the same period.

So, when choosing two UK stocks for passive income, it is important to consider my options carefully.

A thirst for income

That’s why my first key investment is England (LSE: BVIC). Giant global soft drinks operate in the sector we can all raise a glass to. It sells leading brands such as Pepsi Max Kab, J2O, Robinsons and Gatorade, which generated more than £1.6bn in the primary market last year. It also generates a healthy dividend yield of 4% for shareholders.

After a good Christmas, executives are focusing on cost control which I think will continue to reward investors, even as the global economy falters. I am also confident that the yield will beat the income that bank investment accounts have to offer after the recent increase in interest rates.

Furthermore, the share price has proven to be quite stable in turbulent times, meaning that my initial investment should hold its value.

This combination of factors is an important ingredient in building passive income, so I expect my investment in Britvic to grow over the years.

Like any Britvic drink, I know what I want. Which, in this case, is a good investment that should yield strong long-term returns.

Call for good performance

The second investment is when time is everything. Vodafone (LSE: VOD) has seen its share price decline in recent years.

Investors are concerned about declining revenues in mainland Europe. Even chief executive Margherita Della Valle admits there are areas where the business ‘could do better’.

They have a number of initiatives underway to save hundreds of millions of pounds over the next three years and manage their considerable debt.

Its share price reflects the scale of the challenges it will face to steer the giant global company, having fallen 59% over the past five years.

That doesn’t look like a stable platform on which to make passive income. But market jitters have made a good price, I believe. Furthermore, the 8% dividend yield will help to offset any further fall in value, although I think it is already at a bargain basement level.

There is significant potential for the telecom giant at current prices. As a long-term investor, I think we have all the ingredients to reap substantial returns from growth stocks and high-yielding dividends in the future.



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