With November just around the corner, I have been thinking about what income shares I could add to my portfolio to boost my passive income. On my shopping list of shares to buy if I have spare cash to invest in coming weeks are three that have dividend yields of 10% or higher!
Not only that, two of them are blue-chip FTSE 100 names.
Vodafone
The first of those FTSE 100 shares is Vodafone (LSE: VOD).
Vodafone shares are not as cheap as they were a couple of months back. But they still look like good value to me and offer a 10.2% dividend yield.
I doubt the dividend will be raised any time soon – it has been held flat since a cut back in 2019. But even if it is simply maintained at its current level, that yield looks attractive to me.
How likely is that to happen?
The firm does have a large debt pile, although last year saw it reducing that substantially. Meanwhile, a strong position in lots of European and African markets, resilient demand, and a massive customer base all work to the company’s advantage, in my view.
M&G
The asset manager M&G (LSE: MNG) is another FTSE 100 member with a double-digit dividend yield.
Like Vodafone, that currently stands at 10.2%. But, unlike Vodafone, the financial services provider has a recent record of increasing its annual dividend. Last year saw the dividend grow 7%. This year saw the interim payout increase 5%.
M&G has a well-established brand and millions of clients spread across more than two dozen markets.
I think the business is well-positioned to capitalise on strong demand for asset management. However, I do see a risk that could change if there is a severe recession and customers start pulling funds from the market.
But over the long term, I think the proven business should be able to generate sizeable cash flows. That gives it a lot of dividend potential, which is why it is on my list of shares to buy in November.
Income & Growth
My third choice is a share that has been on my radar for quite a while already: Income & Growth Venture Capital Trust (LSE: IGV).
The shares fell after a recent sizeable dividend payment. I think the current price offers me an attractive buying opportunity.
Dividends are the main attraction for me here – and they are sizeable!
The current yield is a whopping 16.1%. That may well not be sustained, as the payout moves around based on how much cash the trust generates from its portfolio of investments in small and medium-sized enterprises.
In a weak economy, such companies could face challenges. That may lead to a dividend cut from Income & Growth.
While payouts are never guaranteed, the trust currently aims to pay at least 6p per share in annual dividends. Given that the share price is under 70p at the moment, that still looks generous to me.
