When it comes to building a robust passive income portfolio, diversification is often touted as the holy grail. However, the reality for many investors is that available funds tend to arrive in relatively small chunks, making it challenging to spread investments across multiple stocks. In such scenarios, the focus shifts to identifying a single stock that can serve as the cornerstone of a passive income strategy.

Maximizing Passive Income Potential: A Targeted Approach

Prioritizing Strong Brands and Consistent Cash Inflow

Selecting a single stock to represent the entirety of one's investable funds may seem like a risky proposition, but it can also be a strategic move. By dedicating full attention and thorough research to a single investment, investors can ensure that every decision is made with the utmost care, akin to a sniper's precision rather than a farmer's blunderbuss approach.One stock that has caught the attention of passive income-seeking investors is MONY (LSE: MONY), the money-saving and personal finance services provider. MONY boasts a diverse portfolio of well-known brands, including MoneySuperMarket and MoneySavingExpert, which have become household names in the personal finance space. These comparison websites have proven invaluable for many individuals, helping them keep their expenses in check when shopping for essential services like energy and insurance.

Consistent Cash Flows and Shareholder Dividends

What sets MONY apart, however, is its impressive track record of consistent incoming cash flow and steadily rising shareholder dividends. This multi-year financial and trading record has been a key factor in attracting the interest of passive income investors. Despite recent share price declines, the company's earnings forecasts remain robust, suggesting that the current valuation may present an opportune moment to consider MONY as a potential addition to a passive income portfolio.

Assessing Sustainability and Competitive Landscape

Of course, no investment is without its risks, and MONY is no exception. One concern is the potential for increased competition from other players in the market, which could put pressure on the company's margins and profitability. Additionally, the reliance on service providers, such as insurance companies, to work with MONY introduces an element of uncertainty.However, MONY's management team has demonstrated a proactive approach to protecting the company's niche in the market. By leveraging technology and continuously trialing new products, MONY has managed to maintain its position and adapt to changing market conditions. The recent third-quarter trading update from the company has been particularly encouraging, with an upbeat outlook statement despite some weakness in the firm's energy-related offerings.

Evaluating the Dividend Yield and Growth Potential

As of October 23rd, MONY's share price stands at 195p, which translates to a forward-looking dividend yield of over 6.7% for 2025. This yield is significantly higher than the anticipated 3.7% yield of the FTSE All-Share index, making MONY an attractive option for investors seeking to boost their passive income streams.Furthermore, according to City analysts, MONY's normalized earnings are expected to increase by approximately 26% in the coming year, further bolstering the sustainability of the company's shareholder dividends. This growth potential, combined with the attractive dividend yield, makes MONY a compelling choice for those looking to build a passive income portfolio.

A Targeted Approach to Passive Income Investing

While the ideal scenario for passive income investors would be to have sufficient funds to diversify across multiple stocks, the reality is that many individuals must make do with smaller investment amounts. In such cases, a targeted approach, such as the one being considered for MONY, can be a viable strategy.By dedicating the full attention and research required to select a single stock, investors can ensure that their passive income investments are made with the utmost care and consideration. MONY's strong brands, consistent cash flows, and attractive dividend yield make it a compelling option for those seeking to enhance their passive income streams, provided that the risks associated with the company's competitive landscape and reliance on third-party service providers are carefully evaluated and mitigated.