I’m searching for some of the best UK dividend shares to buy next month. Here are three top UK dividend stocks on my radar for September.
5.4% dividend yields
Buying UK banking shares isn’t without risk right now. Not only could their profits sink again if the Covid-19 crisis soars out of control and the economic recovery hits the skids. Their margins are also in danger as central banks maintain ultra-loose monetary policy.
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That being said, I think TBC Bank Group (LSE: TBCG) offers the sort of value that’s hard to ignore. I think a forward price-to-earnings (P/E) ratio of six times reflects the impact of these threats on future earnings. And what’s more, a 5.4% dividend yield makes it a very attractive UK share to buy right now.
As a long-term investor, I’m thinking of buying TBC Bank as the economic outlook for its home territory of Georgia remains compelling. GDP growth in the emerging market has been robust over the past couple of decades. And I expect the economy to start booming again once the Covid-19 crisis retreats.
Another great UK dividend share
Grabbing a slice of the e-commerce action is another hot investment theme for this decade. I think a great way to do this is to buy Urban Logistics REIT (LSE: SHED).
I think this UK dividend share’s a top buy because it operates in a white-hot territory of online retail. A recent Adobe report shows e-commerce on these shores attracted the most new users of any market last year. As well, Adobe notes the UK e-retail sector is growing twice as fast as in the US, with total sales up 75% year-on-year in the first quarter.
Concerns over sustainability are rising, and this threatens to harm Urban Logistics’ profits if it subsequently impacts consumer behaviour to a massive degree.
But I still think things are looking good for the property powerhouse as people graduate from the high street to cyberspace. This dividend share boasts a bulky 4.7% yield for this fiscal year (to March 2022).
A top penny stock
Fellow property stock Assura (LSE: AGR) might not pack a dividend yield quite as high as that of Urban Logistics. For 2021, its number sits at decent-if-unspectacular 3.8%.
Still, for those seeking dependable payout growth year after year, I think this UK dividend share’s a great buy. If broker projections hit the mark, annual dividends would have risen every year for almost a decade.
Assura’s brilliant record pays testament to its ultra-defensive operations. As a developer and provider of primary healthcare properties it can expect revenues to continue rolling in during good times and bad.
In fact, the steady growth of Britain’s elderly population means that the need for its services could balloon as healthcare demand rises.
It’s worth remembering that Assura is committed to acquisitions to drive the bottom line. This capital-intensive strategy could thus damage shareholder returns later down the line if dividends are scaled back.
But as things stand, I think this penny stock is a great UK dividend share for me to buy right now.