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The index has risen an encouraging 4% so far in the second quarter. The London stock market is back in fashion thanks to buzz over new potential IPOs (such as those of Shein and Monzo), and hopes over interest rate cuts. Yet years of underperformance mean many first-class Footsie shares still trade at bargain-basement levels.

I’m currently looking for cheap shares that could make me a healthy four-figure income this year. The following two have grabbed my attention. As you can see, both shares carry a forward dividend yield well above the 3.



5% average for shares. They also deal on rock-bottom price-to-earnings (P/E) ratios. If dividend estimates are right, a £20,000 lump sum investment invested equally across both shares today will net me a £1,300 passive income over the next year.

While they’re not without risk, here’s why I’d buy them for my portfolio this June. Talking dividends Telecoms firms like Vodafone have to overcome significant competitive pressures to make a profit. But the long-term growth potential for these businesses is terrific, such is the rapid pace at which our lives are becoming increasingly digitalised.

This Footsie company has disappointed many investors in 2024 with plans to rebase its dividend. However, the expected payout for this year still carries a giant 7%-plus dividend yield. I’m confident that dividends on Vodafone shares will grow again over time, too.

I’m encouraged by steps to cut costs and re-focus on outperforming areas like .

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