Here’s how I’d generate a passive income with UK dividend stocks Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Rupert Hargreaves I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Enter Your Email Address Rupert Hargreaves | Sunday, 20th December, 2020 “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I think there are some tremendous bargains in the world of UK dividend stocks right now. And I’m looking to take advantage of this discrepancy. I reckon that by acquiring a basket of these companies, I can generate a passive income to cover at least a portfolio of my living costs. UK dividend stocks I think finding the market’s best dividend stocks requires time and patience. It’s not as easy as finding the highest yield. In some cases, stocks have high yields because the market believes the payout is not sustainable. More often than not, the market is right.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…With that in mind, I like to stick with firms that have high yields and low payout ratios. I think these companies are the best candidates to create a passive income stream.Put simply, a low payout ratio suggests the firm in question is only paying out a modest portion of its income. A payout ratio of 75% or less suggests to me that the business can support the company’s distribution. But this does not mean that I have a limited universe of companies to buy for a passive income portfolio. In fact, my research suggests there are at least 150 companies in the FTSE All Share with payout ratios of 75% or less. Some examples of these top UK dividend stocks include Sage, Britvic, Games Workshop and BAE Systems. A portfolio of these four companies equally weighted would provide a dividend yield of just under 3%. Compared to interest rates available on most high street banks’ savings accounts today, I reckon this level of income looks incredibly attractive. Generating a passive incomeBuying UK dividend stocks could be one of the best ways to generate a passive income for life, according to my research. When I’ve found the dividend stocks to buy, all I have to do is set up a regular investment plan. This process can be relatively straightforward. Most online stock brokers now offer a regular investment plan, which allows investors to put away a set amount every month. How much I decide to put away really depends on my personal savings and investing goals. I’ve found it’s a good idea to set out an income target and then work towards that goal. For example, my living costs work out at around £500 a month. That’s equivalent to an annual sum of £6,000. Using the UK dividend stocks outlined above, my figures suggest I would need a total investment portfolio of £200k to generate an attractive passive income stream that suits my lifestyle. With this target in place, it’s easier to lay out a savings and investing plan to help me reach it. Investing for growth could help me hit this objective faster. While the corporations outlined above only yield around 3%, some growth stocks could produce significantly higher returns on my money. Return rates of over 20% are not uncommon. Finding these high-growth stocks may help me hit my passive income target in a shorter time frame. Image source: Getty Images Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Britvic and Sage Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.