3 big dividend shares to buy today

Paul Summers picks out three second-tier dividend shares to help take the sting out of rising prices.

| More on:
One pound coin

Image source: Getty Images.

With inflation at a 30-year high and showing no signs of slowing down just yet, I think it’s prudent for me to have at least some of my cash stashed away in high-yielding dividend shares.

Here are three that jump out at me, two of which I already own in my Stocks and Shares ISA. All are from the FTSE 250.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

IG Group

I’ve held stock in trading platform provider IG Group (LSE: IGG) for a few years now, partly due to the income on offer. I’ve never gone so far as to calculate the actual figure. However, this company must have increased the value of my ISA by thousands of pounds in dividends alone. And with the shares yielding a forecast 6%, I’ve no intention of selling yet.

Another thing I really like about IG is that it’s geared to perform well in choppy markets. Sure, we might not see a repeat of the explosion in trading that we saw during the pandemic. Even so, the firm must be making healthy profits from the volatility we’ve seen on an almost daily basis in 2022.

An investment here isn’t devoid of risk. Companies often find themselves subject to scrutiny from regulators and new rules can temporarily dent earnings while it adapts. IG is also far from the only option available to market participants in this space.

Nevertheless, a P/E of just 8 looks brilliant value.

Moneysupermarket.com

A second FTSE 250 dividend share that I’d buy more of is price-comparison specialist Moneysupermarket.com (LSE: MONY). That’s despite the shares losing over a third of their value in the last 12 months.

One silver lining for me throughout this is that Moneysupermarket has continued to pay dividends. It now offers a massive 7% dividend yield.

Of course, this may be reduced if trading doesn’t improve soon. As things stand, the payout is covered only 1.2 times by profit. Ideally, I’d be looking for something in the region of two times profit.

On a positive note, CEO Peter Duffy remarked last month that the company had seen a “strong recovery” in its Money and Travel divisions in Q1. I reckon the rise in the cost of living we’ve seen since has pushed more households to save money where they can by visiting its site.

At 13 times earnings, Moneysupermarket looks cheap for an otherwise high-quality share. I’m more than prepared to wait for a recovery, enjoying the income stream in the meantime.

Vistry

A final big dividend share from the FTSE 250 I’ve got my eye on is housebuilder Vistry (LSE: VTY), formerly known as Bovis Homes.

I’m usually wary of owning stocks like this. The housing market is notoriously cyclical and I do wonder if fears over a UK recession (not to mention a return to normal working conditions for many) could bring the post-pandemic property boom to an end in 2022.

Again however, a lot of this looks priced in. Vistry’s stock currently trades at just five times forecast earnings. That’s even cheaper than FTSE 100 rivals such as Taylor Wimpey and Persimmon. A stonking 9.1% yield, safely covered by profit, could be worth the risk.

Vistry would also help to diversify my portfolio, allowing me to mitigate the impact of any dividend cuts elsewhere.

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.

Paul Summers owns shares in IG Group and Moneysupermarket.com. The Motley Fool UK has recommended Moneysupermarket.com. 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.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Social media and digital online concept, woman using smartphone
Investing Articles

Will Lloyds shares recover in 2022?

Lloyds shares have struggled this year and the looming recession won't help. But I'd still buy them today.

Read more »

Two hands holding champagne glasses toasting each other with Paris in the background
Investing Articles

Can the stock market make me rich even now?

Here are three ways I'm coping with the stock market's recent bout of weakness and aiming to build wealth in…

Read more »

Cogs turning against each other
Investing Articles

3 top investment trusts to buy right now

Investment trusts offer a wide range of options for investors. And in troubled times, they provide some safety through diversification…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Why hasn’t the FTSE 100 crashed in 2022?

The catastrophic events of 2022 have left investors around the globe fearing the worst for stock markets. And some have…

Read more »

Trader on video call from his home office
Investing Articles

2 inflation-resistant FTSE 100 stocks to buy today

Soaring inflation could dent my returns if I don't take care. Here are two top inflation-resistant FTSE 100 stocks I'd…

Read more »

Tabletop model of a bear sat on desk in front of monitors showing stock charts
Investing Articles

Why a bear market is an investor’s best friend

A bear market can certainly be scary. But any investor tempted to sell might benefit by looking at Warren Buffett's…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Rolls-Royce share price could be stuck below £1 for a while. Should I buy?

The Rolls-Royce share price has been trading at penny stock levels since April. Could the stock be a bargain at…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m aiming to make £45,000 in passive income with UK shares and never work again!

Investing regularly in UK shares can generate a substantial passive income over the long run. Zaven Boyrazian demonstrates how.

Read more »