But the company had signalled that a change was on the way when it comes to allocating its capital.

Today (27 May), the FTSE 250 firm issued its results and laid out more detail of what that looks like.

A sharp dividend cut

In short, it looks painful. The prior year’s dividend per share was 13p. That has now been cut to 7.4p, a fall of 43%. This is presented as being part of a move to “rebase” the dividend to 50% of earnings per share. In practice, it means a big cut on this occasion.

The dividend may not be this size in future, depending on what the earnings per share are.

Was this needed?

I do not think 50% of earnings per share is a particularly high target. I would prefer the board took a more ambitious approach when it comes to the dividend.

The income prospects here are one of the things I think have helped support a weakening investment case during a period of underwhelming performance. The share price is down 26% over the past 12 months and 57% over the past five years.

I expect cutting the dividend like this will lead some income investors to sell, potentially hurting the share price.

Last year, the company’s cash flows from operating activities were £191m. At £59m, the cost of paying equity dividends represented just 31% of those cash flows. Meanwhile, £25m was spent on share buybacks.

In other words, I do not think this dividend cut was inevitable. It is a strategic choice the board has made. As a Pets at Home shareholder I do not like what this signals about the importance the board attaches to the dividend.

Business showing signs of improvement

One reason the Pets at Home share price has gone down in recent years is uneven business performance. The vet practice business has been growing but the retail side of things has struggled to maintain sales.

Full-year figures for the company last year showed a 1% fall in revenue. The vet division grew, but the retail operation suffered from declining revenues.

Pre-tax profit fell 28% and free cash flow 26%. Clearly, there is a lot of work still to be done here

But the company has a lot of strengths, including its well-known brand and a loyalty scheme with over 7m active members.

A turnaround plan is in progress to try and fix the retail business. The company expects to continue growing its vet practice business this year and return the retail business to growth. Indeed, it expects to outstrip market growth in its retail division.

I’m unhappy

I continue to see real potential for the business. But I already have a surfeit of struggling retailers in my portfolio, from B&M to Lululemon Athletica. I bought Pets at Home primarily for its dividend and that has now been slashed.

So I will not be buying any more Pets at Home shares. I can get a better yield from other shares I see as lower risk.

Should you invest £5,000 in Pets At Home Group 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 Pets At Home Group Plc made the list?

Christopher Ruane owns shares in Pets at Home, B&M European Value Retail and Lululemon Athletica.

The post Why has the Pets at Home dividend been slashed? appeared first on The Twelfth Magpie.

Lots of people have exactly that thought – and make it happen. Not only is it possible, it can be simple and – unlike some supposedly passive income plans – genuinely passive.

But there are some key things to understand if seriously considering such an approach.

Dividend yield

One is dividend yield.

This has some similarities with the interest rate on a bank or building society account. A yield of 5% means dividends in one year that equate to 5% of the purchase cost of those shares.

But there are some big differences compared to an interest rate.

Dividends are never guaranteed and can be cut, cancelled, or increased without prior notice. That said, some companies do signal they are considering reviewing their capital allocation policy, which can be a coded warning that a cut might be in the works.

That is why you sometimes see people talk about ‘forward yield’ (merely an estimate of what the company might pay in the coming year, expressed as a percentage of its current share price) versus plain old yield or ‘historic yield’ (a snapshot of what actually happened – but might not happen in future, remember).

Take my holding in Pets at Home (LSE: PETS). I like the company’s large customer base, extensive branch network, and growing vet group business.

I also like its dividend yield. It is 7.2% — or is it?

Well, yes it is, based on the past year’s payout. But an announced review of, you guessed it, capital allocation priorities means the forward yield is likely lower. Exactly how much, for now, is anyone’s guess.

Cash flows

But why might Pets at Home, or any other company, cut its dividend?

After all, the share’s passive income potential is part of its appeal to shareholders. The board surely knows that a cut could put off some investors, potentially weakening demand for the share.

Knowing that dividends are not guaranteed for any share is important – but it is also important to understand why.

Basically, if a company has enough spare cash, it can decide what to do with it. Dividends are only one potential use of spare cash.

Pets at Home could use some of its spare cash to lower shelf prices, potentially making its retail offer more competitive. After all, that has been one of the firm’s challenges in the past year or two. Getting a handle on a company’s spending priorities can be instructive.

But it is also critical to understand how much spare cash a firm is likely to generate in the first place, before thinking about what it might be used for.

This is where getting to grips with free cash flows matter.

In the first half of its current financial year, for example, Pets at Home’s operating activities generated £107m in net cash flows.

Dividends cost it £38m, which suggests the dividend is well covered. But the company has other costs, such as funding share buybacks.

Understanding how cash flows work is not some boring fixation for accountants. It is vital for any investor serious about trying to build passive income streams from dividend shares!

Should you invest £5,000 in Pets At Home Group 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 Pets At Home Group Plc made the list?

Christopher Ruane owns shares in Pets at Home.

The post Thinking of buying dividend shares to build passive income streams? 2 simple yet critical concepts you need to understand appeared first on The Twelfth Magpie.

That’s because the UK stock market, with its deep pool of dividend-paying companies across banking, energy, and consumer staples, offers some of the most attractive and generous dividend policies anywhere in the world.

But not every high yield is what it seems. They can sometimes be a trap. So let’s break down exactly how to avoid them.

When a yield becomes a trap

Pets at Home (LSE:PETS) appears to offer exactly what income investors dream about. With a trailing dividend per share of 13p and a share price hovering around 176p, the yield stands at 7.38% — enough to instantly unlock a £738 passive income from a £10,000 investment today.

However, investors who fall into this trap will be bitterly disappointed. That’s because management’s already announced “we will rebase our dividend to a 50% payout ratio”, effectively translating into a dividend cut.

Yet even before this announcement, Pets at Home’s dividend already looked a little shaky.

The company’s been navigating a difficult trading environment. Profit margins have been squeezed from rising veterinary costs, consumer spending on discretionary pet products has been getting softer, and price undercutting from online competitors has been eating away at market share.

The result? Earnings came under sustained pressure, and dividend coverage became increasingly tight, suggesting that a cut was only a matter of time.

Shrewd investors who looked beyond the headline yield and examined the dividend coverage ratio – a key measure of how safely a payout’s funded by underlying earnings – would have spotted the danger well in advance.

Can Pets at Home turn it around?

To be fair to the business, management isn’t standing still. Pets at Home is actively reshaping its business model, doubling down on its veterinary services division while also investing in its loyalty ecosystem to deepen customer relationships.

It’s a seemingly smart move given this segment enjoys a far stickier, higher-margin recurring revenue than the group’s retail arm. So if management can deliver solid execution and the consumer environment also starts to bounce back, the dividend could follow.

After all, even with the recent challenges, Pets at Home remains one of the UK’s most recognisable pet care brands. And that loyalty has real long-term value, making it a stock to watch closely.

How to avoid the same mistake

The lesson here isn’t to avoid high-yielding UK shares altogether, but rather to do the work before committing capital. A dividend yield only tells you what a company intends to pay. Dividend cover, free cash flow generation, and the underlying health of the business tell you what it can pay.

Investors who apply that filter consistently are far more likely to avoid falling into yield traps like Pets at Home. And instead, build a portfolio of genuinely high-quality income stocks capable of delivering that 7% dividend yield reliably, year after year.

The post How to invest £10,000 to aim for a 7% dividend yield appeared first on The Twelfth Magpie.

Why is that?

Reduced earnings prospects

One reason can be that a company expects to do less well in future than it is now.

That helps to explain why FTSE 100 tobacco shares Imperial Brands and British American Tobacco both yield well above the index’s average of 3.0%, at 5.6% and 5.7% respectively.

Falling cigarette sales volumes could hurt sales revenues and profits. Indeed, both companies have reported declining total revenues for the past several years in a row.

Shunned sectors

Sometimes, investors shun a certain business sector. With fewer buyers for the shares, that can help sustain high yields.

For the tobacco companies above that might be on ethical grounds.

Other investors may shun what they perceive as “sin stocks” like alcohol makers. For example, personally I do not care to invest in companies that manufacture arms for global sale.

But sectors might also be shunned for non-ethical reasons. Sometimes, they just fall out of fashion.

Most of the highest-yielding FTSE 250 shares right now – like Bluefield Solar Income Fund with its 11.1% yield – are in the renewable energy business.

Investors have cooled on the whole sector, share prices have fallen (Bluefield Solar Income Fund is 36% lower than five years ago) and dividend yields have been pushed up.

Cyclical businesses

That can happen in cyclical sectors too.

For now it is too early to say whether the downturn in renewable energy performance is permanent, or part of a business cycle.

But we know many sectors are cyclical. Oil and mining may be doing well right now, but not all cyclical sectors are.

Take housebuilders as an example. FTSE 100 member Barratt Redrow yields 6.0%. It has already cut its interim dividend this year.

In good times, cyclical industries can see shares soar. On the way down – as we are currently seeing with UK housebuilders – weakening performance can lead to share prices tumbling.

That can push up yields, but often that is partly because the City expects a dividend cut sooner or later.

Mixed business messages

Another situation even in a non-cyclical industry can be when a successful company runs into trouble and is undergoing a turnaround.

Case in point: Pets at Home (LSE: PETS).

The FTSE 250 share is down by over half in five years, pushing its dividend yield up to 7.2%, although a change in payout policy means lower dividends are likely in future.

Could this be a reflection of reduced earnings prospects, like I mentioned above?

Its industry may be resilient, but the firm’s shops have struggled to maintain sales levels.

The second half of last year did see sales volumes grow year on year. But it is unclear that revenues are also growing.

I see a risk that the company may increase discounting, helping sales volumes but hurting profit margins.

However, I perceive the strong brand, large customer base, and retail turnaround plan as reasons to be optimistic.

The company’s vet practice division continues to grow well. I think this is a share for investors to consider.

The post Ever wondered why some FTSE shares have such high dividend yields? appeared first on The Twelfth Magpie.

So, does it work?

Long-term capital gains

Perhaps the simplest way to understand how someone might build wealth in a Stocks and Shares ISA is if they are able to sell shares for more than they buy them. This is known as a capital gain.

That might happen over the short term, but as an investor — not a trader — I aim to buy shares and hold them for the long term.

To illustrate, Rolls-Royce shares have gone up 52% over the past year, which is certainly very impressive. Over five years, though, they are up 997%.

So, if someone invested £1,000 in the shares five years ago, they could sell them today for around £10,970.

If they do not sell, that is their ‘paper gain’. But a paper gain (or loss) does not crystallise until the shares are sold.

The actual capital gain can be reduced due to the difference between buying and selling prices at the same time (known as a spread). The spread can be significant, especially on thinly traded shares.

Fees and commissions can also eat into returns, so it makes sense to choose carefully when picking a Stocks and Shares ISA.

Dividends can provide a steady stream of passive income

Another way an ISA can help someone build wealth is through dividends. Whether that happens depends on what shares they own in the ISA.

Not all shares pay dividends and, even when they do, they are never guaranteed to last. That said, some have paid dividends year after year – Scottish Mortgage Investment Trust has not cut its payout per share since the aftermath of the Wall Street Crash close to a century ago!

Aiming for a snowball effect

A different approach is leaving the dividends inside the ISA wrapper, increasing the amount of money available to buy new shares (and potentially earn more dividends) without eating into the annual ISA contribution allowance.

That is known as compounding. Investor Warren Buffett compares compounding to a snowball rolling downhill. The further it rolls, hopefully snow (dividends) will pick up more snow and so on.

Buffett is a fan of compounding in general. But one reason it can be especially helpful in an ISA context is that by allowing the dividends to be kept inside the ISA wrapper, an investor could potentially end up being able to invest more cash within their ISA each year than their contribution allowance alone would suggest.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A share to consider

One share that I think offers both capital gain and dividend potential over the long-term is Pets at Home (LSE: PETS). I see it as a share worth considering.

After falling 58% in five years, the share now sells for just 11 times earnings.

I reckon that is attractively valued for a large, profitable company with ongoing growth opportunities. The dividend yield is a tasty 6.9%.

That price fall suggests trouble, though. The company’s shop sales performance in the past several years has been disappointing. There is a risk that could continue, hurting profits.

But a turnaround plan is in progress. Meanwhile, the vet practice division continues to grow.

The post 3 ways to try and build wealth using a Stocks and Shares ISA appeared first on The Twelfth Magpie.

When it comes to pension planning, both a SIPP and an ISA can have some pros and cons.

There’s no free money in an ISA

Both vehicles can help someone to accumulate capital gains and dividends in a tax-efficient manner.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

But an ISA does not involve any ‘free money’ – at least not from the government. An ISA provider may have a promotion that offers a cash incentive to use them.

Believe it or not, a SIPP does offer free money. Specifically, the government offers tax relief for income tax payers contributing to their SIPP.

So, it is essentially the Exchequer giving you with one hand what they already took away with the other.

Still, that can be a substantial bonus. For example, a basic rate taxpayer who puts £8,000 into their SIPP will have £10,000 to invest thanks to the tax relief. Higher and additional rate taxpayers will find the tax relief even more lucrative.

SIPPs have some important constraints

So, why do people use an ISA over a SIPP given the free money a SIPP can involve?

One big consideration is what happens to the money after it is in the vehicle.

With an ISA, someone can decide to take the money (or some of it) out at any time. There may be several reasons why someone chooses to take money out. For example, they have an unexpected expense like higher school fees due to tax changes, or a medical emergency.

By contrast, the SIPP is designed in a way that is meant to keep people focussed on their retirement finances even when other emergencies pop up along the way.

So they cannot take a penny out of the SIPP until they are 55. Even then, only a portion of it can be withdrawn tax-free. For withdrawals over that limit, capital gains tax rules would apply.

That different tax treatment could make a SIPP less attractive, when compared to the absence of tax on capital gains made inside an ISA then withdrawn. The lack of flexibility about withdrawals before 55 may not suit some investors either.

Here’s my approach

I see benefits in both vehicles, as well as less attractive features, so I have both a SIPP and a Stocks and Shares ISA.

As a long-term investor, I try to focus on shares I think have potential for the coming decades. One I think currently merits consideration is Pets at Home (LSE: PETS).

Its share price has fallen by a fifth over the past year and now stands at just 11 times earnings.

Personally, I think pet lovers will keep spending money on their animals even when consumer spending more broadly is squeezed.

There are risks: the share price fall reflects Pets at Home’s weak retail performance. It has been trying to improve that but there is a risk that the wrong stock selection or uncompetitive pricing could still cost it sales.

The company has a large and growing group of vet practices to help offset that weakness – and a dividend yield of 7%.

The post ISA or SIPP? Some key differences to know appeared first on The Twelfth Magpie.

Might it?

The deadline’s about contributing, not investing

At first glance, the answer seems to be no.

The annual deadline is about putting money into an ISA, not investing it.

Once the money is in the ISA wrapper, it could potentially sit there for years before someone puts it to work in the stock market. So, there is no necessary, direct connection between the deadline and buying shares.

Seen another way, though, there may be a link between the two things.

If someone wants to start buying shares, it makes sense for them to consider doing so as tax-effectively as they can. A Stocks and Shares ISA is a commonly used investing vehicle precisely because it allows many investors to do that.

So, putting some money in before this tax year’s allowance expires could be a savvy move for someone to consider now, even if they have not yet decided what they will end up investing it in.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Choosing the right ISA – and the right shares

With the focus on ISAs at this time of year, some providers offer promotions to try and attract customers.

So it can be a smart time to compare different options and choose one that seems right for your own individual needs.

As I said above, it is possible simply to open a Stocks and Shares ISA and put some money into it, with no rush to start buying shares. However, I do think that the current stock market turbulence means there are some high-quality shares that currently look attractively priced.

My own approach when hunting for shares to buy is to stick to business areas I feel I understand, focus on the quality of the business, consider its long-term prospects, and decide whether I think the share price is attractive. A great business can make a terrible investment if you pay too much for it.

A share I like for the long term

As an example, one share I own is Pets at Home (LSE: PETS). The FTSE 250 company has a chain of pet supply shops, as well as vet practices.

Pet lovers are usually willing to spend on their animals and the market is fairly resilient, as there is always a fairly sizeable population of furry friends.

With its extensive network of shops, popular membership programme, and strong brand, Pets at Home has been able to do well out of this market.

Indeed, it has a dividend yield of 7.2%, suggesting that buying £100 of its shares today could earn an investor around £7.20 of dividends annually.

Dividends are never guaranteed, though, and the company today signalled a new dividend policy that will likely lead to lower future payouts.

The chain has had challenges, including the wrong product assortment hurting its retail sales.

In a trading statement today (31 March), the firm said its retail turnaround plan is progressing. I see that as positive, but weakening retail sales remains a risk for the company.

However, with lots to like and a juicy dividend to boot, I see it as a share for investors to consider.

The post Does this weekend’s ISA deadline make now a good time to start buying shares? appeared first on The Twelfth Magpie.

Of course, experienced investors know that a high yield can often be a warning sign. But there are always exceptions, allowing smarter investors to unlock a chunky passive income.

With that in mind, let’s take a closer look at a 7.5%-yielding stock on offer right now.

An emerging opportunity?

When it comes to pet care, Pets at Home (LSE:PETS) is the UK’s leading enterprise. The company’s built an entire ecosystem of retail and veterinary solutions, turning it into a one-stop shop solution for pet owners across the country.

Yet, despite having this dominant market position, its recent performance has been far from perfect. Throughout 2025, management issued multiple profit warnings due to a combination of headwinds. On the costs side of the business, increases to the Minimum Wage and employer National Insurance Contributions have both taken their toll.

Meanwhile, on the sales side of the equation, demand for premium pet food has waned as consumers have started moving away from legacy brands and into the arms of newer direct-to-consumer solutions. And combined, these factors have put significant pressure on profit margins.

That certainly helps explain why the Pets at Home share price has taken a near-25% tumble over the last 12 months. Yet even with these challenges, dividends have continued to flow. And looking out to the horizon, they might even be on track to grow.

Incoming catalysts

Management isn’t blind to the pressures facing its business. And action has already been taken to deliver £20m in annualised savings through various initiatives, with benefits expected to begin emerging later this year.

Furthermore, the record number of new puppies and kittens registered during the pandemic are now entering mid-life where vet visits are less frequent. But as they get older, that dynamic will change, creating a long-term, multi-year demand tailwind in the coming years.

In the meantime, the firm’s joint venture with Vet Group is chugging along nicely, expanding its capacity to meet this incoming demand surge, while still delivering impressive free cash flow. And when combined with the excess cash generated by the rest of Pets at Home’s businesses, dividends remain comfortably cash-covered even with a chunky 7.5% yield.

So is this a no-brainer for passive income investors?

What to watch

Assuming management’s able to get things back on track, this might indeed be a rare opportunity to lock in a 7%+ yield. However, it’s important to recognise that success isn’t guaranteed, especially considering regulators have taken aim at the UK veterinary sector.

With an investigation currently underway by the Competition and Markets Authority (CMA) about Pets at Home’s dominant position, the company could end up facing restrictions over pricing and further expansion. The findings of this investigation have yet to be published and so, for now, remain an overhanging source of uncertainty.

For now, the dividend appears to be here to stay. But if the CMA’s investigation comes to a negative conclusion, the stock could have much further to fall – a risk that investors will need to consider carefully. That’s why I’ve got my eye on other lower-risk passive income opportunities…

The post Does a 7.5% yield make this passive income stock a slam-dunk buy? appeared first on The Twelfth Magpie.

Three popular names that have slipped this past month are Pets at Home (LSE: PETS), British Land and Aberdeen (LSE: ABDN), each sporting chunky yields between 6%-7%.

Pets at Home

Pets at Home makes most of its money from pet products, vet services and grooming, so its sales are tied to everyday (but emotionally-driven) pet spending rather than big-ticket items. The shares now yield roughly 6.7%, with dividends covered 3.6 times by cash and a payout ratio of 77%.

Recent results showed steady profits and continued dividend growth over the last decade, suggesting the board’s comfortable sharing cash while still investing in the business.

Valuation looks reasonable, with a price-to-earnings (P/E) ratio of 11.7 — lower than many UK consumer retailers. However, stubborn inflation poses a risk: while people rarely cut pet spending first, any deeper recession could slow discretionary purchases like toys or accessories.

Stiff competition from low-cost online retailers could pressure margins if shoppers look elsewhere.

British Land

British Land’s one of the UK’s big listed property companies, managing offices, retail parks and mixed‑use sites. Its shares currently offer a dividend yield of roughly 6%, with payouts accounting for only half of earnings. In its latest half‑year results for 2025/26, underlying profit rose 8% and earnings per share nudged higher, allowing management to lift the interim dividend by 1%.

Higher interest rates continue to challenge commercial property values, but as markets start to price in future cuts, yields on high‑quality property groups like British Land look more attractive.

The big risk is that if the UK economy weakens again, rental demand for offices and retail space could fall. That would pressure both income and property valuations.

Aberdeen

Aberdeen’s an asset manager that earns fees for running funds and portfolios for clients. The shares trade on a below-average P/E ratio and the dividend yield of 8% is very attractive. The company has kept the dividend going for 19 years and the latest numbers show a payout ratio around 80%. That’s a bit high but the dividend is still sufficiently covered by current earnings.

That limited cover’s a key risk though. If markets weaken and fee income drops, management could eventually decide to trim the payout to protect the balance sheet. On the flip side, a recovery in markets and fund flows would give it more breathing room, as rising asset values generally lead to higher fee revenue.

A rare income opportunity

For UK income investors, these three shares show why market dips can be useful moments to go shopping. Prices down 8%-10% can lift starting yields into the 6%-7% range.

Naturally, nothing’s risk free – from online competition to property cycles and market‑sensitive fee income. But the toss-up’s higher yields today to accept those risks, which can tilt the odds in your favour if you’re patient.

Any of these three may be worth considering but as always, I’d spread money rather than backing just one name, so that one bad egg doesn’t spoil an entire passive income portfolio.

The post As global markets dip, British passive income stocks offer higher yields at cheaper prices appeared first on The Twelfth Magpie.

But what does that look like in practice?

One easy way to imagine it is to work through an example – here, I will use an approach based on someone contributing £300 per week.

Why a long-term approach can build serious income streams

In isolation, £300 might not sound like the basis for a strong income flow.

But remember, that is per week. So, week after week, month after month, and year after year, the amount invested can add up.

Meanwhile, what is already invested can help generate dividends. Those can be reinvested (compounded) in the beginning if desired, to increase the potential size of a second income down the line.

So, say someone puts aside £300 per week and compounds it at 6% annually. After a decade, the portfolio ought to be worth over £211,000.

At a 6% yield, that should generate around £12,676 of dividends per year. That would mean a four-figure monthly second income on average.

From idea to action

While that may sound good in theory, it will not happen by itself!

A useful first step is choosing a share-dealing account, Stocks and Shares ISA, or trading app to put the £300 into each week.

Setting up a regular contribution, such as a standing order or direct debit, could also help solidify this idea into action.

On the hunt for quality dividend shares

Another step is finding dividend shares that look set to maintain or even grow their dividends in future – something that is never guaranteed.

One share I think investors should consider at the moment is FTSE 250 firm Pets at Home (LSE: PETS).

For many of us, the first thing that name brings to mind may be the extensive network of retail shops selling everything from accessories to food for moggies, mutts, macaws, and more.

But the company also operates a large network of vet practices. The brand familiarity from one side of the business – boosted by an extensive loyalty scheme – can help drive custom for the other.

That two-pronged approach has been showing its usefulness lately. The retail operation has struggled to maintain sales, but good performance on the vet side of the business has helped counteract that.

Still, there is an ongoing risk that the wrong product assortment or pricing could make the firm’s shoppers look elsewhere. That helps explain why the share is 47% cheaper than five years ago.

That price fall also reflects a somewhat reduced interest in pets post-pandemic.

But this market is still massive and a falling share price has helped push the dividend yield upwards. It now stands at 6.2%.

I find that attractive from an income perspective. Indeed, Pets at Home is currently in my portfolio so I am hoping it will earn me welcome dividends in years to come!

The post What second income could you build up using a spare £300 per week? appeared first on The Twelfth Magpie.