The following passive income stocks all offer market-beating dividend forecasts for the New Year. Each of them carries a dividend yield that stamps all over the FTSE 100 average of 3.8%.
Here’s why I’d buy them for my Stocks and Shares ISA if I had the cash.
5.7% dividend yield
Keeping Britain’s lights switched on is an expensive business. And the cost of maintaining and upgrading the country’s pylons, power lines and related infrastructure is a constant threat to grid operator National Grid (LSE:NG).
But City analysts don’t expect this to compromise the company’s ability to keep paying large dividends. For the financial years to March 2024 and 2025 its yields sit at 5.6% and 5.7%, respectively.
These bright forecasts reflect the highly defensive nature of National Grid’s operations. They are largely unaffected by broader economic conditions. The business also has a monopoly on what it does, thus eliminating the competitive threats that most other UK shares face.
I expect this Footsie firm to keep paying big dividends for years to come. As the green energy transition continues it should have ample opportunities to grow earnings and, by extension, shareholder payouts.
8.1% dividend yield
FTSE 250-listed Foresight Solar Income Fund (LSE:FSFL) is another non-cyclical dividend stock I’m looking at today. As the name implies, it focuses on harnessing energy from the sun, a strategy that could deliver long-term income growth as demand for clean energy booms.
This renewable energy stock has concentrated its investment in solar farms in this country, although it also has operations in Spain and Australia. This wide geographic wingspan helps group earnings if poor weather conditions develop in certain territories, a constant risk for such businesses.
For 2024 Foresight carries a healthy 8.1% dividend yield. And it appears in good shape to meet current payout forecasts. Global revenues are 85% contracted for next year, providing excellent earnings visibility.
What’s more, the company also has a strong balance sheet to help it continue returning cash to investors. Last month it doubled its ongoing share buyback programme to £40m.
9.6% dividend yield!
Purchasing banking shares can be a risky business during uncertain economic periods. Loan impairments can rise and product demand can stall or even reverse.
However, I’m seeking to add Bank of Georgia (LSE:BGEO) shares to my portfolio for next year. This is because major economic bodies are currently tipping further strong economic growth in the territory. The IMF, for instance, tips GDP to expand by 4.8% year on year.
In such a landscape, dividends at the bank would likely continue soaring. And City analysts agree. This is why Bank of Georgia — whose underlying pre-tax profits leapt 32.5% during Q3 — carries a huge 9.6% dividend yield for the New Year.
Low banking product penetration in its home market provides the bank with significant long-term investment potential too, despite geopolitical risks.
