Investing in UK shares is, for my part, among the finest methods to make a big and dependable second earnings. I additionally consider that purchasing dividend-paying exchange-traded funds (ETFs) may be an efficient option to attain the identical aim.

Right here’s a high FTSE 250 share and a Europe-focused ETF I’d purchase for passive earnings if I had money to take a position at present.

NextEnergy Photo voltaic Fund

Electrical energy is considered one of trendy society’s important commodities. And so investing in one of many London inventory market’s power producers may be a good way to supply a dividend earnings.

NextEnergy Photo voltaic Fund (LSE:NESF) is one such firm on my watchlist proper now. Because the identify implies, this explicit operator focuses its consideration on renewable power.

As we speak it owns and operates greater than 100 photo voltaic farms throughout the UK, Italy, Spain and Portugal. It additionally has a small handful of power storage belongings up and working and in improvement.

Proudly owning renewable power shares has benefits and drawbacks. On this case, energy era can take a dip when the solar’s rays are much less robust, in flip impacting the quantity of electrical energy it could actually promote to power suppliers.

However on stability, I feel the advantages of me proudly owning this dividend share could outweigh the dangers, and considerably too. Earnings right here may increase over the following decade as Europe transitions from fossil fuels in direction of clear power.

Its broad footprint spanning Northern and Southern Europe additionally reduces the chance of weather-related disruption on group income.

As we speak, NextEnergy supplies a ten.9% ahead dividend yield. This is likely one of the greatest on the FTSE 250, and underlines the share’s enchantment as a high dividend inventory.

iShares MSCI Europe High quality Dividend ESG ETF

Investing in a dividend-paying exchange-traded fund (ETF) may present a path to a dependable second earnings. One I’d fortunately purchase for my very own portfolio at present is the iShares MSCI Europe High quality Dividend ESG ETF (LSE:EQDS).

Funds like this will provide secure dividends because of their diversification throughout a large spectrum of shares. Investing throughout mutiple industries and international locations means the ETF can present a clean return over time, no matter any firm or sector-specific woes, and even bother within the wider economic system.

This explicit iShares product contains industrial big Schneider Electrical, monetary companies supplier Zurich and drinks producer Diageo. In whole, it has money unfold throughout 70 totally different companies.

In the course of the previous 5 years, the fund has delivered a mean annual return of 9.1%. That is far above the 5.8% return that iShares’ FTSE 100-backed fund has delivered over the identical timeframe.

The ETF’s deal with Europe means it has much less geographical diversification in comparison with a extra international fund. If the area’s core economies (like Germany) proceed struggling, it’d ship sub-par returns in contrast with the latter.

However on stability, I feel it’s nonetheless a great way for me to try to supply a reliable passive earnings. And at present its ahead dividend yield is a wholesome 4%.