3 high-yield shares that could generate dividends of £1,750 this year!

These high-yield FTSE 250 stocks might be brilliant buys for investors seeking to make a large lifelong passive income. Here’s why.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Middle-aged black male working at home desk

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.

The London stock market is a great place to discover top dividend shares. It’s packed with companies with strong records of dividend growth. What’s more, years of share price underperformance also mean many of these offer some staggeringly high dividend yields.

The following three FTSE 250 shares have grabbed my attention. Their tantalising dividend forecasts and yields can be seen in the table below.

CompanyPredicted dividend per shareDividend yield
Greencoat UK Wind (LSE:UKW)10p7.2%
TBC Bank Group (LSE:TBCG)217p7.4%
Urban Logistics REIT (LSE:SHED)7.75p6.5%

Dividends are never guaranteed. But if broker forecasts are correct, a £25,000 lump sum invested equally across them would provide me with a £1,750 second income over the next 12 months.

Should you invest £1,000 in Henry Boot Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Henry Boot Plc made the list?

See the 6 stocks

I’m confident too these high-yield shares will steadily increase shareholder payouts over the long term. Here’s why I think they might be great buys for dividend investors.

Wind warrior

Renewable energy stocks like Greencoat UK Wind have significant earnings potential for long-term investors.

Adverse weather conditions can impact power generation from time to time, putting a drag on revenues. But over an extended time horizon, wind farm operators could enjoy exceptional growth as the world switches from fossil fuels to cleaner energy sources.

Greencoat UK Wind's geographic footprint.
Source: Greencoat UK Wind

Labour’s plan to lift the onshore windfarm ban should also boost UK operators like this. On top of this, there’s a chance the government will classify large-scale farms as nationally significant infrastructure, thus eliminating the possibility of local authorities vetoing their construction.

Property giant

Real estate investment trusts (REITs) can also be a great way to source an income over the long term. They are required to pay a minimum of 90% of their annual rental profits out to shareholders.

Urban Logistics REIT is one I expect to thrive as e-commerce steadily grows. As an operator of storage and distribution hubs, it provides an essential service that allows manufacturers, retailers and delivery companies to get product to online consumers.

In fact, this part of the property market is experiencing a huge shortage. And so like-for-like rents (which grew 19% here last year) look set to continue growing strongly.

High interest rates pose an ongoing problem for its net asset values (NAVs). But on balance, I think Urban Logistics is worth a close look.

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.

A riskier pick

Created with Highcharts 11.4.3TBC Bank PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Growing political and social turbulence in Georgia threatens to derail the country’s banks like TBC Bank Group.

Financial product penetration’s low in the Eurasian country. And it’s been soaring in recent years as the economy there has boomed.

TBC’s own profits have jumped 111% over the past five years. But it’s performance could slow sharply if turbulence in Georgia continues.

However, I believe this threat is reflected in the company’s rock-bottom valuation. Following a recent share price slump, it now trades on a forward price-to-earnings (P/E) ratio of just 4.5 times.

I think it might be a top stock to buy for contrarian investors.

Investing in AI: 3 Stocks with Huge Potential!

🤖 Are you fascinated by the potential of AI? 🤖

Imagine investing in cutting-edge technology just once, then watching as it evolves and grows, transforming industries and potentially even yielding substantial returns.

If the idea of being part of the AI revolution excites you, along with the prospect of significant potential gains on your initial investment…

Then you won't want to miss this special report inside Motley Fool Share Advisor – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And today, we're giving you exclusive access to ONE of these top AI stock picks, absolutely free!

Get your free AI stock pick

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 recommended Greencoat Uk Wind 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

Investing Articles

Up 30% in weeks, does the BAE Systems share price still offer value?

The BAE Systems share price has been on a tear over the past couple of months. This writer sees limited…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Hunting for shares to buy as the market trembles? Remember this!

After a choppy week in global stock markets, our writer goes back to basics in his hunt for bargain shares…

Read more »

Investing Articles

3 simple principles to help build wealth in an ISA

As a new tax year opens up new ISA allowances for many investors, our writer shares a trio of things…

Read more »

Investing Articles

US trade tariffs: what they could mean for UK shares like Ashtead, Compass Group, and Experian

US trade tariffs continue to rock global markets, and the UK is no exception. Our writer considers how a new…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Dividend Shares

The Trump slump has smashed these FTSE 100 shares!

After a rough week for US and UK shares, investors have been shaken. But now these FTSE 100 stocks have…

Read more »

Investing Articles

£10,000 invested in Rolls-Royce shares 5 years ago is now worth…

Rolls-Royce shares have been on fire since April 2020. Part of this is the result of pandemic restrictions lifting, but…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

£10,000 invested in Tesla stock at its peak in 2024 is now worth…

Over the last few months, Tesla stock has lost nearly half its value. Here, Edward Sheldon explores a few takeaways…

Read more »

Investing Articles

Is the S&P 500 heading for an epic stock market crash?

Our writer shares his thoughts on a very crazy time for the S&P 500 and the wider stock market. How…

Read more »