I think these high dividend stocks could be brilliant candidates for UK investors seeking long-term passive income. And at current prices I think they are especially attractive.
Here’s why.
Central Asia Metals
As copper prices go from strength to strength, now could be a great time to snap up some copper stocks. Central Asia Metals (LSE:CAML) is one such company on my watchlist.
Today the red metal miner trades on a forward price-to-earnings (P/E) ratio of just 9.2 times. Its dividend yield also remains at impressive levels, at 8.5%.
Investing in commodities stocks can be a wild ride. Prices can suddenly take a tumble when key data, and especially from the currently sickly Chinese economy, disappoints the market.
But as supply problems emerge, copper prices — which just touched one-year highs — could be poised for further gains. I certainly believe the long-term outlook for the red metal is bright given booming demand from the automobile, construction, and electronics industries.
I think Central Asia Metals could be a great way to play this theme. The business owns the Kounrad copper mine in Kazakhstan, where it aims to produce 13,000-14,000 tonnes of the metal in 2024, as well as the Sasa lead-zinc mine in North Macedonia.
I especially like the business because of its strong balance sheet. It has zero debt and had $57.2m of cash in the bank as of December. This gives it plenty of firepower to continue investing in its assets, while also paying out tasty dividends to its investors.
Assura
Real estate investment trusts (REITs) can be excellent ways to generate a large and reliable dividend income over time. They are able to pay impressive dividends to their shareholders because they receive a steady stream of contracted rents.
But what sets REITs apart from other property stocks are rules governing dividends. In return for tax breaks, these companies must pay a minimum of 90% of yearly rental profits out to their investors.
I already own a couple of REITs for passive income. And I’m considering adding Assura (LSE:AGR) to my portfolio to give my income a further boost.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
Unfortunately for Assura, hopes of imminent interest rate cuts have pulled its share price lower again in 2024. The higher the interest rate, the more pressure companies find their net asset values (NAVs) under.
This could remain a problem if inflation fails to fall as expected. Yet at current prices I think Assura shares are too cheap to ignore. And it’s not just because the forward dividend yield has recently leapt to 7.9%.
The business — which operates 612 primary healthcare properties across the UK and Ireland — also trades on a P/E ratio of just 12.1 times. This is far below its 10-year average which sits in the early-to-mid 20s.
I think Assura has terrific growth potential, too. As the UK’s elderly population rapidly grows, demand for new and updated medical facilities also looks set to rocket.
