UPDATE: UK stocks are experiencing an unprecedented surge in 2025, with the FTSE 100 achieving its strongest performance since 2009. Investors looking to earn a second income can capitalize on this opportunity with just a £5,000 investment.
As of December 2025, there are 276 UK stocks yielding 4% or more, including 112 within the FTSE 100 and FTSE 250. Some stocks even boast yields as high as 22%. This means a £5,000 investment could potentially unlock an astonishing £1,100 in annual income—although investors are cautioned that such high yields often signal a risk of dividend cuts.
One company currently drawing attention is the Ashmore Group (LSE:ASHM), which has a remarkable dividend yield of 10.4%. An investment of £5,000 in Ashmore could generate an estimated passive income of £520. In contrast, a typical FTSE 100 index tracker would only yield around £154 for the same investment, making Ashmore a standout option.
However, potential investors should proceed with caution. Ashmore specializes in emerging markets, an area that has seen mixed investor sentiment. The company has faced capital outflows, impacting its management fee income and raising concerns about its ability to sustain its dividend payments.
“Despite the challenges, Ashmore has a significant cash buffer of £350 million, allowing it to cover its annual dividends of £120 million for the next several years,”
said a financial analyst. This buffer gives Ashmore time to potentially rekindle investor interest and stabilize its revenue stream.
Recent reports indicate that Ashmore is beginning to see a reduction in net outflows, with assets under management on the rise due to a recovery in emerging market investments. While there is no guarantee that these positive trends will continue, they suggest that Ashmore’s impressive dividend yield could remain viable.
With the market shifting and dividend opportunities presenting themselves, now may be the perfect time to explore investments in UK stocks. Investors are encouraged to do their due diligence before making decisions.
For more insights, consider the advice from investing expert Mark Rogers, who has identified six standout stocks worth considering right now. Will Ashmore Group make the list? The clock is ticking—don’t miss out on these lucrative investment opportunities.
For those looking to diversify, stocks yielding over 10% could offer unique investment potential, especially in sectors poised for growth. Keep an eye on emerging trends and market shifts to maximize your investment returns.
This evolving situation highlights the importance of staying informed about UK stock performance. As always, consult with a financial advisor to tailor your investment strategy to your individual needs.
