Wouldn’t it be nice to make money while you sleep? Building a genuine passive income stream from scratch might sound like a fantasy, but it’s entirely achievable with consistent monthly investing.
In fact, £288 a month, the average amount UK households set aside each month, is all it takes. Here’s how…
What £288 a month can build
Let’s start with a simple low-cost index fund tracking the FTSE 100. While investments are never guaranteed, history shows that, over the long run, investors can expect to earn close to 8% a year.
Invest £288 every month at that rate, and after 17 years of consistent saving, the portfolio would be worth around £124,357.61. Then, following the classic 4% withdrawal rule, that translates into a £4,974.29 annual passive income.
Not bad. But with smarter stock-picking, the results can be dramatically better.
How to accelerate the journey
Computacenter‘s (LSE:CCC) a perfect example of stock-picking done correctly, and is one of the UK’s most impressive long-term compounders.
Over the last 10 years alone, the IT infrastructure and services provider has delivered an average annualised total return of 21.1% – almost triple the market average.
Anyone drip feeding £288 a month at this double-digit rate for 10 years is now sitting on a portfolio worth £116,265.43. And if Computacenter continues to follow its current trend for just one more year, that same portfolio will grow to £147,125.21 thanks to the power of compounding.
In terms of passive income, this translates into a £5,885 annual inflow. So can it happen?
Is the risk worth the potential reward?
The most recent trading update painted an impressive picture. In the first quarter of 2026, Computacenter delivered results “significantly ahead of the prior year and well above expectations”, with Technology Sourcing revenue surging on the back of hyperscale customer demand from both North America and the UK, including a wave of AI-related project completions.
Management subsequently upgraded its full-year guidance, now expecting results “comfortably ahead of market expectations”, which currently sit near £291.3m in adjusted pre-tax profits.
With a committed product order backlog remaining strong and customers ordering IT hardware further in advance than usual to secure supply, the near-term pipeline looks robust.
However, there are some key risks to keep an eye on.
First, while Professional Services is growing strongly, Managed Services revenue declined 2.4% in 2025 – a trend that’s since continued into early 2026. Since Managed Services carries structurally higher margins than hardware supply, any prolonged weakness there could weigh on profitability even as revenues climb.
Another factor to watch is that Computacenter’s Technology Sourcing boom is partly being driven by customers ordering hardware early due to component shortages.
Once customers have stocked up, demand could fall drastically as customers switch to a de-stocking approach, creating some pretty tough comparables for Computacenter in the process.
The bottom line
Computacenter’s a genuinely high-quality business with a long track record of delivering for shareholders. The current momentum’s real, and the AI infrastructure tailwind driving hyperscale demand doesn’t seem to be going away anytime soon.
That’s why, for investors seeking to build a meaningful passive income, I think considering this stock could be a very good place to start digging. And it’s not the only compounder on my radar right now.
Should you invest £5,000 in Computacenter Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Computacenter Plc made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
