UK stocks are a terrific way of generating a passive income. While the London Stock Exchange doesn’t offer much choice in tech stocks, it’s riddled with dividend-paying companies. And some have the most generous shareholder payouts in the world. Many investors often underestimate the power of dividends. Most chase share price growth. And to be fair this can be a winning strategy. But, in the long run, dividends are the dominant source of returns for British investors. In fact, they’ve been the difference between earning a 40% or a 140% return over the last 12 years looking at the FTSE 100. The UK’s flagship index currently offers a solid yield of 3.6%. That’s almost triple what the US S&P 500‘s currently paying! So let’s say I invest £10,000 right now into a low-cost index tracker. Within a single transaction, I’d have a diversified portfolio generating a passive income of £360 a year without having to do an ounce of work. And assuming the FTSE 100 continues to deliver its historical total return of 8% thanks to dividend reinvestment, my portfolio will grow considerably over time. After 40 years, I’d have £242,734 from starting with just £10,000! But if I up...