6.5% dividend yields! 3 UK shares to buy in August

I’m looking for UK shares with big dividend yields to snap up in August. Here are three of what I think are the best income stocks to buy.

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I’m on the lookout for the best dividend stocks to buy in August. Here are three UK shares with big dividend yields I’m considering snapping up.

A FTSE 100 income hero

It’s perhaps unsurprising that investor confidence in UK share markets remains weak. The FTSE 100 has dropped back below the 7,000-point marker again as fears over the Covid-19 crisis and rising inflation have rattled nerves.

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But I don’t plan to pull up the drawbridge. Indeed, SSE (LSE: SSE) is a top FTSE 100 share I’d buy, despite the uncertain economic outlook and the threat to future profits from regulators.

Firstly, investors can take confidence in the fact that demand for its electricity will remain broadly stable, whatever happens. Secondly, its decision to focus on the fast-growing renewable energy arena will allow it to exploit soaring demand for low-carbon power.

And thirdly, SSE remains on course to divest around £2bn of assets to shore up its balance sheet and thus continue paying above-average dividends. City analysts are expecting the annual dividend to grow again in the 12 months to March 2022. Consequently, SSE sports a gigantic 5.5% forward dividend yield.

Hand holding pound notes

Another top UK dividend share

I think Vistry Group (LSE: VTY) is also one of the best dividend stocks to buy now. Today, this FTSE 250 firm boasts a big 4.2% yield for 2021. News flow from the housing industry continues to get better and better as buyer demand outstrips the supply of ‘for sale’ properties.

This week, estate agency Savills upgraded its house price growth forecasts to 9% for 2021. This is more than double the 4% it had previously predicted. And it reckons property values will keep striding higher, resulting in total growth of 20.5% between 2022 and 2025.

However, robust Bank of England interest rate hikes could put these estimates under pressure. But I think Vistry’s low valuation (it trades on a forward price-to-earnings (P/E) ratio of 10) reflects this risk. It’s worth mentioning that the UK housebuilding share’s average weekly private sales rate clocked in at 0.76 in the first six months of 2021. This is up 10% from pre-pandemic levels.

The payments powerhouse

I’m also excited about PayPoint’s (LSE: PAY) profits outlook as it steadily rolls out its Paypoint One retail terminals. The technology has proved to be a winner in improving footfall and, consequently, revenues at convenience stores (they allow customers to pay for goods, settle bills, send parcels and transfer money). So PayPoint One is now live in 18,100 stores, having risen by another 324 in the three months to June.

This isn’t the only reason I like this particular UK share. I’m confident the recent acquisition of card payment and terminal businesses Handepay and Merchant Terminals will pay off handsomely in an increasingly-cashless society too. Today, PayPoint boasts a mighty 6.5% forward dividend yield.

I think the UK share is an attractive income stock to buy despite the threat posed by larger tech rivals in the payments arena.

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