I plan to continue adding UK shares to my Stocks and Shares ISA. But this month I’m likely to be operating on a tighter budget. This is why I’m trying to get as much bang for my buck as I can.
With this in mind here are two top dividend stocks I’m aiming to buy with cash to spare. Both trade on rock-bottom earnings multiples. They also carry dividend yields north of 9%.
Pagegroup
Recruitment businesses like Pagegroup (LSE: PAGE) are incredibly cyclical. This means there’s a big danger earnings could sink in the near term as the global economy cools.
This doesn’t mean I wouldn’t buy the business for my portfolio this November though. Encouragingly, profits here continue to soar despite worsening macroeconomic conditions.
Furthermore, the recruiter offers eye-popping value for money right now. It trades on a forward price-to-earnings (P/E) ratio of 10.1 times and boasts a 9.1% dividend yield.
Pagegroup’s third-quarter gross profits soared 18.6% year on year, during which time it delivered record performances in nine markets. A strong US dollar also helped results, a factor that should continue to provide support going forward.
As a dividend investor I also like Pagegroup for its rock-solid balance sheet. This naturally gives it more firepower with which to raise dividends and pay special ones. Net cash leapt to £186m as of September.
Sylvania Platinum
Falling car sales pose a danger to platinum group metal (PGM) producers like Sylvania Platinum (LSE: SLP). Around 40% of platinum demand comes from the auto sector where it is used in catalytic converters.
However, environmental factors mean PGM demand looks set to grow strongly over the long term. Increasing amounts of platinum and palladium are being required to cut harmful emissions from cars and trucks.
The demand for platinum is also expected to grow strongly if green hydrogen becomes a popular alternative fuel. The metal is a key catalyst in the production of the gas.
I like Sylvania in particular because of its impressive production record. Third-quarter output hit 19,194 ounces, the highest level since the Covid-19 lockdowns. From the end of this year, its expanded Tweefontein plant will begin contributing additional output as well.
I’m also a fan because of the company’s exceptionally low cost base. This provides it with extra protection when commodity prices come under pressure. It also gives the company extra cash with which to pay market-beating dividends.
Today, Sylvania Platinum boasts a 9% forward dividend yield. Furthermore, this year’s payout is well covered by anticipated earnings. Dividend coverage sits at 2.5 times, well inside the benchmark target of 2 times and above.
At current prices, Sylvania also trades on an ultra-low P/E ratio of just 3.9 times. I think this, combined with that huge dividend yield, makes the business too cheap to ignore.
