How I’m Making £1,000 a Month with This FTSE 100 Financial Stock

So, you’re thinking about investing in some shares to make some extra cash, right? Well, I’ve got just the thing for you. Forget about all those boring articles and let me tell you about this FTSE 100 financial stock that could make you some serious money.

You see, Warren Buffett once said something like, “If you’re not planning to hold onto a stock for at least ten years, then don’t bother buying it for even ten minutes.” And you know what? I totally agree with him. When I buy shares, I’m in it for the long haul. I’m talking about passive income, baby!

Now, if you’ve got a few decades ahead of you, there are some pretty sweet opportunities out there. I’m talking about building up a nice little pot of cash without breaking a sweat. And let me tell you, there are plenty of big dividend yields to choose from. But not all of them are winners. Oh no, I’m looking for stocks that have a solid track record of paying out the cash over the long term. That’s why financial stocks are my jam.

Sure, they can have their rough patches. I mean, just think back to the 2008 financial crisis. Yikes! But even then, I’m still a fan. Take insurance stocks, for example. They can be a bit up and down, but that’s just part of the game. And today, I’ve got my eye on one in particular – Phoenix Group Holdings (LSE: PHNX).

Now, the share price has taken a bit of a beating, down 25% in the last five years. Ouch! But you know what they say – buy low, sell high, right? So, should we be scooping up these insurance shares when the whole sector is feeling the heat? I mean, the business doesn’t exactly thrive when people are feeling the pinch, and inflation and interest rates are causing all sorts of headaches. But hey, I’m not one to follow the crowd. I’m more of a go-against-the-grain kind of investor.

I mean, just look at what Sir John Templeton said. He made a fortune by going against the crowds. He said, “It takes patience, discipline and courage to follow the contrarian route to investment success. To buy when others are despondently selling, to sell when others are avidly buying.” And you know what? He’s considered one of the best stock pickers of all time.

So, let’s talk numbers. The Phoenix share price has dropped, pushing the forecast dividend yield above 11%. That’s some serious cash right there. Sure, the firm might record a loss this year, but the experts reckon it’ll bounce back pretty quick. And those dividends? They’re expected to keep on flowing.

Now, I’m not saying it’s all rainbows and sunshine. The dividend might not hold up, and the share price could take a hit. But just imagine the passive income I could rake in if I can snag yields like these and keep them coming.

So, what’s the deal? Well, if I want to make £1,000 a month, I’d need about £110,000 in Phoenix Group shares. That would bring in a sweet £12,100 per year. Not bad, right? But let’s be real, I don’t have that kind of cash lying around. If I could max out a single Stocks and Shares ISA allowance, I could grab 4,300 shares. And if I reinvest my dividends every year, I could hit my goal in just 17 years.

Now, would I go all in on Phoenix shares? Heck yeah, but only as part of a diversified portfolio. I’m all about spreading the risk, you know? I mean, things change, and I expect financial stocks to have their fair share of ups and downs in the future. But hey, this ‘what if?’ scenario has got me fired up to hustle harder towards my passive income goals.

So, there you have it. Forget about waiting for a stock market crash. This stock is the real deal, and it’s on sale right now. Don’t miss out on this opportunity to boost your cash flow. Let’s make some money, people!