I don’t have a unlimited supply of cash I can use to buy UK income stocks. But here are a handful I’d like to invest in right now if I did. I think they could deliver excellent returns over the next decade.
Steppe Cement
Construction product supplier Steppe Cement boasts a forward dividend yield of 11.8%. It has a strong track record of paying big dividends and I expect it to maintain this course in the coming years.
Steppe (as its name tells us) produces and supplies cement in Kazakhstan. It’s therefore well placed to capitalise on huge government spending there on infrastructure, residential property and renewable energy assets.
Analysts at GlobalData think the country’s construction industry will expand 5.5% between 2023 and 2026. It could keep growing strongly given the bright outlook for the Kazakh economy. I’d buy Steppe Cement despite recent political unrest there.
Triple Point Energy Transition
Renewable energy is on course to be a top growth industry of the next decade. The International Energy Agency thinks green power capacity will rise by 2,400 gigawatts between 2022 and 2027.
To put this in perspective, that’s equivalent to the whole of China’s power capacity today.
For this reason I think Triple Point Energy Transition could prove an exceptional UK stock to own. It’s an investment trust whose assets generate power from the sun, water, wind, organic material (biomass) and other waste products.
Producing energy from renewable assets can be volatile at times. This can consequently have a temporary impact on profits. But on balance I still think Triple Point (which boasts a 6.8% forward dividend yield) is a good stock to own.
Central Asia Metals
Sticking with green energy, revenues at Central Asia Metals looks set to soar as the fight against climate change accelerates.
The copper it produces in Kazakhstan is a vital component in renewable energy technology. It’s also used in vast quantities to build electric vehicles (EVs) and related infrastructure like charging points. The lead and zinc it sources from North Macedonia are also key materials for EV batteries.
Analysts at Statista reckon EV sales alone will increase at a compound annual growth rate of 16.84% between now and 2027.
I’d buy Central Asia Metals despite the threat of high energy costs to its bottom line. Its forward dividend yield sits at a mighty 8.9%.
Reach
Newspaper publisher Reach carries a prospective 7.7% dividend yield today. I think it’s also a top dividend stock to buy despite the uncertain outlook for advertising sales in 2023.
You see the business has been investing heavily in digital publishing arena. And these steps are paying off handsomely. I also like Reach because of the strength of its established titles like The Daily Mirror and Manchester Evening News.
These newspapers command excellent reader loyalty. And with levels of ‘fake news’ on the rise, reader engagement with these titles should remain rock solid.
