7.9% and 8.5% dividend yields! 2 of my top passive income stocks to consider buying in April

These dirt-cheap shares could be excellent buys for investors seeking a market-beating passive income. Give me a few minutes to explain why.

| More on:
Diverse group of friends cheering sport at bar together

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 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.


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.

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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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 »