These FTSE 250 dividend shares all offer yields comfortably above of the 3.6% index average. Dividends are never guaranteed, of course, but here’s why I’d buy these UK stocks for passive income next year.
Assura
Real estate investment trusts (REITs) like Assura (LSE:AGR) have been weighed down in 2023 by higher-than-normal interest rates. This could remain an issue during the new year too if inflation remains at elevated levels.
But I feel its focus on the highly-defensive healthcare sector makes Assura a top buy in these uncertain times. It owns and operates medical facilities like GP surgeries, demand for which remains strong at all points of the economic cycle.
The rents the company receives are also backed and guaranteed by government bodies, which also ensures that rental income will keep flowing. The company operates 612 primary healthcare facilities and boasts a strong development pipeline to help it grow profits and earnings further out.
For the year to March 2024 Assura’s dividend yield comes in at 7.1%. And for the following financial year it moves to 7.4%.
TBC Bank Group
FTSE 100 bank stocks like Lloyds, Barclays and NatWest are extremely popular for investors seeking passive income. Personally, I would rather snap up shares in TBC Bank Group (LSE:TBCG) today.
The Georgia-focused bank offers a higher yield than those UK blue-chips for 2024. This clocks in at a robust 7.5%. And like City analysts, I’m tipping it to grow dividends at a far faster pace than those British banks.
This is because of low product penetration in Georgia and forecasts of rapid economic growth. Both the World Bank and Asian Development Bank expect the Eurasian nation’s GDP to expand 5% in 2024.
Against this backdrop, TBC Bank — whose net profit rose 9% between January and September — can expect further solid earnings growth. I think it’s a top dividend stock to buy despite the prospect of additional regulatory changes than could harm growth.
Bakkavor Group
Food manufacturer Bakkavor Group (LSE:BAKK) also offers up a tasty dividend yield for 2024. Predictions of additional payout increases create an 8.9% yield for next year.
This FTSE 250 stock manufactures fresh food in the UK, US and China. We’re talking about salads, pizzas, ready meals, desserts and bread, the sort of products that require zero preparation time.
Our increasingly busy lifestyles mean that demand for pre-prepared foods is soaring. And Bakkavor is expanding its international operations to capitalise on this booming market.
The company is on a roll and in September hiked its full-year profits expectations. Revenues rose 7.9% between January and June, which reflected strong volumes in China coupled with price-boosting actions.
It’s true that Bakkavor’s sales could disappoint if consumer spending remains under pressure. But on balance, I think 2024 could be another strong year for the firm as the ready-to-eat food segment keeps growing.
