2 top income stocks for investors to buy and hold for 10 years!

I think these could be among the best income stocks for UK share pickers to buy today. In fact I already own one of them in my own investment portfolio!

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Middle-aged black male working at home desk

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I think these income stocks are terrific buys for long-term investors. Here’s why I expect them to deliver market-beating returns over the next decade.


Real estate investment trusts (or REITs) can be great ways for investors to supercharge their passive income.

The regular contracted rents they receive usually provide them with financial firepower to pay big dividends year after year. Furthermore, these firms are obligated to pay nine-tenths of annual profits out by way of dividends,

The PRS REIT (LSE:PRSR) is one such property stock I think is a great buy for investors. As the name implies, this UK share is focused on providing accommodation in the private rental sector (or PRS). This market is suffering a severe supply and demand imbalance which, in turn, is driving rents skywards.

Illustrating this point, the Royal Institute of Chartered Surveyors (RICS) recently noted that “tenant demand continues to increase” while “landlord instructions continue to decline.” It said that “the headline rent expectations reading remains at a relatively high level of +45%” and that “this pattern is repeated across much of the country”.

Shortages are particularly severe in the family home sector. This benefits PRS given its focus on this part of the rentals market. The business has almost 5,000 completed homes on its books and a further 613 in various stages of development.

Changes to rental legislation could impact the REIT further down the line. But as things stand, I believe the company’s a great way to make dividend income. For this financial year its dividend yield sits at a market-beating 4.6%.


I believe that Ibstock (LSE:IBST) is another top share for investors to buy and hold for the long haul. I’ve even put my money where my mouth is. I’ve owned this FTSE 250 stock since 2017.

As mentioned above, property shortages in the UK rental market are severe. The sales sector is also suffering a significant supply imbalance. As a consequence Britain will have to supercharge homebuilding over the next decade.

This is where Ibstock stands to profit. The company is the country’s largest brick manufacturer by volume. And it’s investing heavily to make the most of the upcoming construction boom.

Last year it acquired a fireproof cladding and a glass reinforced concrete (GRC) firm to expand its product ranges. It’s also building a £50m brick slips factory in West Yorkshire with an annual capacity of 60m slips. These recent investments are also intended to capitalise on soaring demand for more environmentally-friendly building products.

Things aren’t all rosy for Ibstock and investors like me. Demand for its bricks has softened more recently due to turbulence in the housing market. This trend could continue too if interest rates keep rising and the cost-of-living crisis rolls on.

That said, from a long term view, I believe the brickmaker’s trading outlook remains robust. And so I expect it to remain an attractive source of passive income. By the way, its dividend yield for 2023 sits at a juicy 5.2%.

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.

Royston Wild has positions in Ibstock Plc. The Motley Fool UK has recommended Ibstock Plc. 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.

More on Investing Articles

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

1 Warren Buffett stock I’m buying now

Coca-Cola is the fourth-largest holding in Warren Buffett’s Berkshire Hathaway. I’ll explain why I’m following Buffett and buying more.

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

I bought 4,403 Lloyds shares in June and 4,856 in September. Here’s what they’re worth now

Harvey Jones thought he was bagging a FTSE 100 bargain when he bought Lloyds shares on two occasions last year.…

Read more »

Young woman holding up three fingers
Investing Articles

I’m itching to buy these 3 hidden FTSE gems in a Stocks and Shares ISA

Harvey Jones is keen to add these three FTSE 100 companies to his Stocks and Shares ISA before April. Only…

Read more »

Close up of a group of friends enjoying a movie in the cinema
Investing Articles

How I’d try and turn just £1 a day into a fabulous £54,485 passive income for life

By investing small, regular sums in FTSE 100 shares I can potentially generate a huge passive income stream. It won't…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

I’d aim for a million buying under a dozen shares

Christopher Ruane explains why less could be more when it comes to building a share portfolio if he wants to…

Read more »

Investing Articles

Rolls-Royce shares are up over 1,000% since 2020! Am I too late to buy?

Rolls-Royce shares now cost over tenfold what they did in the firm's 2020 rights issue. Our writer thinks they may…

Read more »

Investing Articles

1 top UK growth stock for my tech portfolio in 2024

Up 30% in just one year, this growth stock looks positioned to continue on the path of substantial gains, according…

Read more »

Buffett at the BRK AGM
Investing Articles

I’d follow Warren Buffett to target effortless passive income

Warren Buffett knows a thing or two about building passive income streams. By learning from the Sage of Omaha, so…

Read more »