3 high-yield dividend stocks to consider for my passive income portfolio in 2024

I want to build a portfolio of dividend stocks that pay enough passive income to retire comfortably. Here are my three latest considerations.

| More on:

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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 aim to retire early with a reliable stream of passive income to live comfortably well into old age. 

I believe one of the most effective ways to do that is with a portfolio of high-yield dividend stocks.

Dividends are a portion of profits that companies pay shareholders as an incentive to invest. A dividend yield represents the annualised percentage, usually paid in increments throughout the year.

I’ve spent a lot of time researching the UK stock market to discover dividend-paying companies that are likely to provide me solid returns for years to come. 

Today, I’m considering one FTSE 100 and two FTSE 250 companies that I think offer some of the best dividend-paying shares on the market currently.

Burberry Group

Famous for its luxury bags and coats, Burberry Group (LSE:BRBY) is one of the UK’s most well-known and beloved fashion brands.

Recently, however, it’s struggled to reach the highs of previous years. In January 2024, shares hit a four-year low of £12.30, down by almost 50% over the previous 12 months.

But things are looking up and Burberry is proving its value in the dividends department. 

The company’s balance sheet is solid, with a debt-to-equity (D/E) ratio of 35% and a relatively good net profit margin of 14.5%. This makes it a profitable company that’s unlikely to default on loans any time soon.

With a 4.8% dividend yield, it’s the lowest on my list – but a more established company than the others. When building my dividend portfolio, I must strike a balance between high-yield and reliable stocks, so I’d consider it a good addition.


Plus500 (LSE:PLUS) provides online trading services via an internet platform and mobile app. The FTSE 250 listing has a moderate £1.4bn market cap at the time of writing.

It sports a higher-than-average dividend yield of 7.3%, with the next dividend scheduled to be paid out on 11 July this year. Although dividend payments have been unstable in the past, the company has enjoyed consistent growth with low volatility.

This means it could be a reliable addition to my portfolio, with less chance to incur a sudden price drop. However, analysts forecast an 8% decline in profits over the coming years. That’s a risk, because Plus500 may choose to skip some dividend payments if profits are too low.

But with no debt and a near-flawless balance sheet, I’m confident that Plus500’s high yield dividends would provide me decent returns over the long run. 

Dunelm Group

Speciality homewares retailer Dunelm Group (LSE:DNLM) is a £2.3bn FTSE 250 company that offers a decent 6.7% dividend yield. The share price enjoyed consistent growth over the past 16 years, rising almost tenfold from £1.18 in 2008 to £11.50 today.

The next dividend is due on 9 April, with the ex-dividend date set for 14 March. Dividends are paid out on all shares purchased prior to the ex-dividend date.

Although I like Dunelm’s dividend yield, payments have been volatile and sporadic over the past few years. Furthermore, its earnings are forecast to grow slower than the UK market, likely limiting returns beyond the dividend.

This would make it a less reliable addition to my portfolio, and probably one I would skip over for now.

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.

Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Burberry Group 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

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

Investing freedom — but inside a pension

Strapped consumers might be cutting back on investing, but they’re still keeping up their pension contributions. The only problem? A…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

Forget gold! I’d rather buy these 3 FTSE high-yielders in a Stocks and Shares ISA

Gold looks like a risky investment to me as the price hits an all-time high. I'm ignoring the fuss to…

Read more »

Young female business analyst looking at a graph chart while working from home
Growth Shares

This 55p UK stock could rise more than 300%, according to a City broker

This UK stock has fallen from above 800p to below 60p. But analysts at Citi believe it’s capable of a…

Read more »

Businesswoman analyses profitability of working company with digital virtual screen
Investing Articles

I think this FTSE 250 trust has all the right ingredients to lock in long-term profits

Today I'm examining the prospects of a private equity investment trust on the FTSE 250 that caught my attention recently…

Read more »

Young black man looking at phone while on the London Overground
Investing Articles

2 under-the-radar UK shares investors should consider snapping up

Two UK shares have caught the eye of our writer. She explains why investors should be taking a closer look…

Read more »

Investing Articles

Are these 2 ultra-high-yielding income stocks a good buy for me?

These two income stocks often split the debate amongst investors. So what does our writer think of them as potential…

Read more »

Senior woman potting plant in garden at home
Investing Articles

5% yield! This dividend stock could be great for my retirement

Our writer explains why this dividend stock appeals to her as she’s investing to build wealth to enjoy in the…

Read more »

A young Asian woman holding up her index finger
Investing Articles

I’d aim for a second income of £1,000 a month with this super-reliable dividend stock

I think a great way to build a second income stream is by investing in dividend stocks via a Stocks…

Read more »