The Motley Fool

2 dividend stocks that pay MUCH more than FTSE 100 bank Lloyds

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Hand holding pound notes
Image source: Getty Images.

Regular readers will know I’m more than a little fearful over the profits outlook for Lloyds Banking Group and its industry rivals due to the uncertainty created by Brexit negotiations for the near-term and beyond.

Whether or not you share my bearish opinion, I would encourage you to consider looking closely at these two dividend heroes before the FTSE 100 bank. They even carry bigger forward yields than the 5.6% Lloyds currently offers.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Safe as houses

Despite the stream of cracking trading releases still coming from across the housebuilding spectrum, the Telford Homes (LSE: TEF) share price has failed to gain the traction of its peers.

It’s not a surprise to see the AIM-quoted firm continue to struggle, even though low forward P/E ratio of 8.6 times gives it plenty for bargain hunters to get stuck into. Meanwhile its gigantic 6.1% dividend yield makes it one of the biggest-paying builders out there.

Telford has been the victim of slowing demand more recently, reflecting its strong bias towards the struggling London market. Problems here caused it to shave £10m off its full-year profits forecasts for the period to March 2019 in late February. And it’s possible things could remain difficult through the remainder of the current fiscal year, at least.

Having said that, I would argue long-term investors should consider capitalising on the 40%-plus slide in Telford’s share price over the past 12 months.

In response to its recent troubles, the business has vowed to redouble its efforts in the fast-growing build-to-rent market, a segment which is expected to represent 50% of the company’s development pipeline by the close of the calendar year.

In particular, Telford’s focus on the capital bodes particularly well as rental levels boom. Business campaigning group London First predicts by 2025, some 40% of all households in London will live in the private rented sector, versus 28% as of a few years ago.

Fancy some yields above 7%?

There’s plenty of upside for Telford’s profits to grow once confidence in the London property market improves. But if you’re not convinced, why not take a look at International Personal Finance (LSE: IPF) instead?

Unlike the housebuilding giant, IPF sources no profits from these shores and is, instead, geared primarily towards Central and Eastern European nations such as Poland, Hungary and Czechia. The prospect of runaway economic growth in these emerging nations isn’t the only reason to expect the financial giant’s bottom line to thrive, either, because of the success of its push into the fast-growing digital credit market (credit issued at its IPF Division unit soared 33% in the first quarter).

Currently, IPF sports bigger yields than Telford (and Lloyds for that matter), the business yielding an enormous 7.6% for the current fiscal period. It also trades on a dirt-cheap forward P/E ratio of 5.8 times. For those seeking big dividends on a budget, it’s a pretty terrific stock to buy, in my opinion.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

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

Our 6 'Best Buys Now' Shares

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.

Simply click below to discover how you can take advantage of this.