6.5% yield! One of the best UK dividend shares to buy today

I’m hunting for the best UK dividend shares and I feel this rising star could be one of the best income growth stocks to buy now.

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With the stock market throwing a hissy fit this year, the number of high-yield dividend shares is rising. After all, when prices go down, yields go up.

As a long-term investor, short-term economic wobbles aren’t all that concerning. Watching my portfolio tumble with each passing week is never fun. But with so many terrific businesses now trading at dirt-cheap valuations, prudent investors could unlock immense long-term wealth by buying today.

So when I see one of my companies offering a 6.5% dividend yield paired with excellent fundamentals and a solid long-term growth strategy, I can’t help but get excited.

One of the best dividend shares to buy today?

While listed on the London Stock Exchange, Somero Enterprises (LSE:SOM) is very much an American business, generating around 80% of its revenue in the US. As a reminder, the company is a designer and manufacturer of laser-guided concrete-laying screed machines.

Laying concrete is hardly the most exciting business out there. But it remains a critical step in building and maintaining infrastructure. And with the US government signing a $1trn infrastructure investment bill last year, the group isn’t struggling for growth opportunities.

Looking at the latest interim results, half-year revenues hit a record high of $68.5m. And with its Michigan facility expansion on track for completion before the end of this year, the group’s operating capacity is set to surge by more than a third.

Despite hitting these milestones, shares are down around 24% since the start of the year. As such, the P/E ratio now sits at a modest 7.8 for a company that continues to deliver growth and dividends. In fact, earlier this month, management raised dividends by 11%, pushing the yield to its current level.

That’s why I think this could be one of the best UK dividend shares to buy today.

Inspecting investor concerns

As impressive as Somero Enterprises continues to be in my eyes, I’m not blind to the fact that the company is having to deal with some headwinds. And this could be the reason why the stock has taken a tumble lately.

While performance in its US markets continues to thrive, international operations aren’t fairing as well. With Covid-19 still ravaging certain parts of the world, global shipping delays are plaguing operations in Europe and China.

The group has successfully offset inflationary pressures by raising prices, which is encouraging. However, even with these mitigating actions, margins have still suffered, leading to a 5% contraction in pre-tax profits.

As frustrating as this is, I don’t believe it merits a quarter of the company’s market capitalisation to be wiped out, especially since these are ultimately short-term problems.

It’s possible that further volatility in margins will translate into a lower share price. But at the current valuation, these UK dividend shares simply look too cheap, considering the quality of the underlying business. At least that’s what I think. And it’s why I’m tempted to bolster my existing portfolio position today.

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 assessed. Consider taking independent financial advice.

Zaven Boyrazian has positions in Somero Enterprises, Inc. The Motley Fool UK has recommended Somero Enterprises, Inc. 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.

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