[date-today format='F j, Y']

4.8%+ yields! 4 top dividend stocks to buy today

I’m searching for the best dividend stocks to buy right now. I think these top UK income shares could be too good to miss. The post...
black and white striped textile
Photo by Mitchell Luo

Here’s a selection of top dividend stocks that I’m tempted to buy today.

#1: Safe as houses

The cost of renting residential property in the UK continues to soar. According to the Office for National Statistics, tenant costs jumped 2% in the year to January. This was the fastest rate of growth for five years. It’s my opinion that rental levels will keep rising too given the worsening shortage of available properties.

I wouldn’t invest in buy-to-let to play this favourable market though. I’d invest in Residential Secure Income instead. Not only would this allow me to avoid the huge upfront costs and increasing regulatory burden that buy-to-let brings. This particular UK share also sports a huge 4.8% yield today. I’d buy it even though demand for rental properties could slip if homebuilding rates for buyers leap as planned.

#2: Ship-shape

The costs of Storm Eunice to Britain’s insurers threaten to be colossal. Record provisional gusts of 122 miles per hour have caused massive damage that could take a big bite out of profits at the likes of FTSE 100-quoted Admiral Group. But I still expect this particular income stock to pay big dividends this year (City estimates currently create a 5.8% yield).

Admiral has a rock-solid balance sheet that should help it withstand any significant cost hit and deliver more hefty shareholder payouts. Its Solvency II ratio sat at a mighty 209% as of June, latest financials showed. I think Admiral could be a great long-term buy too as it expands rapidly in overseas territories.

#3: A golden dividend stock to buy

Gold prices continue to be swept higher as concerns over the Ukraine crisis grow and inflation hits multi-decade highs in major economies. The precious metal rose to eight-month peaks above $1,900 per ounce late last week and it’s a whisker away from hitting fresh record highs. I’m thinking of buying gold producer Centamin to capitalise on the bright outlook for metal prices.

The downside to investing in gold shares is that mining is hugely-risky business. Production issues can hit revenues hard and long-term profits forecasts can go up in smoke if exploration work produces poor results. Still, I think this is a risk worth taking given Centamin’s strong operational record and the solid outlook for gold prices. This dividend stock carries a 5.1% yield right now.

#4: A great renewable energy stock

I’m also tempted to buy FTSE 100 energy producer SSE today, a stock that also yields 5.1%. As an income investor, I like this sort of dividend stock: the essential role of electricity production means that it can expect profits to remain robust in all weathers. This gives SSE the confidence to pay large dividends year after year.

I like SSE too because of its focus on renewable energy. Rising demand for low-carbon energy could make it a much better investment than energy producers that use fossil fuels. I’d buy SSE even though changing Ofgem regulations could hamper profits growth later down the line.

The post 4.8%+ yields! 4 top dividend stocks to buy today appeared first on The Motley Fool UK.

Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices

Make no mistake… inflation is coming.

Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing.

Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question.

That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation…

…because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not!

Best of all, we’re giving this report away completely FREE today!

Simply click here, enter your email address, and we’ll send it to you right away.

More reading

2 no-brainer dividend stocks to buy for passive income
3 FTSE 100 stocks that could significantly grow my wealth by 2030!
Here’s why I’m preparing for a stock market crash in 2022
How I’m aiming for £700 a month in dividend income using the Warren Buffett method
3 high-yield stocks I’d buy before the Stocks and Shares ISA deadline

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Admiral 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.





© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Latest News