Buying 5,853 Shares Of This Uk Stock Unlocks A £100 Monthly Passive Income

The London Stock Exchange is packed with brilliant passive income opportunities, home to some of the most generous dividend-paying stocks anywhere in the world.

M&G‘s (LSE:MNG) a perfect example. The savings and investments giant currently pays out 20.5p per share in dividends, which works out to a tasty 5.8% yield at the current price. And it means that if I buy 5,853 shares today, I could immediately unlock an income stream worth £100 a month.

But is this actually a good idea?

Is the dividend well supported?

Looking at M&G’s most recent quarterly update, the business gave a genuinely encouraging picture. Net inflows from the group’s open business hit £600m, a sharp turnaround from the £100m of outflows seen a year earlier.

Put simply, that means more money is now flowing into M&G’s funds than flowing out, which is exactly what a fund manager needs for future profits to keep climbing.

But the Asset Management arm was the real standout, with inflows of £700m driven largely by stronger wholesale activity. And as such, assets under management and administration held relatively steady at £371bn albeit a slight decline from £376bn at the end of 2025, due to a choppy start to the year for markets.

At the same time, M&G completed its very first With-Profits bulk purchase annuity (BPA) deal, worth £300m, giving the business a brand-new source of future income. And overall, CEO Andrea Rossi summed things up nicely: “We are confident in our ability to deliver continued growth this year,” pointing to a strong pipeline of new business.

So does that make this dividend bulletproof? Not quite.

Where the risks lie

M&G’s Life division didn’t have quite as strong a quarter. Legacy business continued shrinking, and the PruFund savings product saw small net outflows of £100m as March’s market turbulence spooked some savers. Management says flows have already stabilised since April, but it’s a reminder that this side of the business is quite exposed to investor sentiment.

It’s also worth remembering that M&G’s fundamentally a business built on managing other people’s money. That means its fortunes rise and fall with financial markets. And a sustained downturn in stocks or bonds doesn’t just dent short-term performance, it can also shrink the fees M&G earns on the assets it manages.

Competition’s fierce too. Savers and institutions have no shortage of alternative fund managers to choose from, and any slip in investment performance could easily send money heading elsewhere. So where does that leave investors today?

The bottom line

M&G looks like a business with real momentum, backed by growing inflows and a newly diversified income stream from its annuity push.

That doesn’t guarantee it’ll be a winning passive income investment. But for income investors hunting for a reliable, well-covered dividend, I think this is a name worth digging into further. And it’s not the only stock I’ve got my eye on right nowâ¦

Should you invest £5,000 in M&g 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 M&g Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Buying 5,853 shares of this UK stock unlocks a £100 monthly passive income appeared first on The Twelfth Magpie.

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