Looking for low-cost ways to make a great passive income in 2024 and beyond? Here are three dividend shares I think are worth close attention in September.
Going green
Sustainable energy stock Greencoat Renewables (LSE:GRP) offers attractive all-round value at 95 euro cents per share.
The company trades at a healthy 15% discount to its net asset value (NAV) per share of 111.4 euro cents. It also currently carries a 7.3% forward dividend yield, more that double the FTSE 100 average of 3.6%.
Clean energy shares like this have considerable investment potential as the transition from fossil fuels accelerates. A strong balance sheet’s enabling Greencoat to capitalise on this opportunity too, while also continuing to pay large dividends.
Last month, the firm acquired a 50% stake South Meath Solar Farm in County Meath, Ireland.
I know that earnings at renewable energy producers can fluctuate during periods of unfavourable weather. At times like these, energy output can drop sharply. But from a long-term perspective, I believe Greencoat could still deliver a great return.
Pawn star
Pawnbrokers such as Ramsdens Holdings (LSE:RFX) might be ideal stocks to own in 2024. Not only are their services likely to remain in high demand as the UK economy struggles, but people are also taking advantage of the soaring gold price right now to trade in their valuables.
That’s not to say I think the business is just a ‘flavour of the month’ company to own however. As it rapidly expands — it’s added another eight stores to its portfolio since last October — Ramsdens is laying the groundwork for solid long-term growth.
Regulatory changes by the Financial Conduct Authority may impact future growth for the pawnbroking sector. But right now, Ramsdens seems to be sitting pretty.
Today, the firm trades on a forward price-to-earnings (P/E) ratio of 9.4 times. It also carries a tasty 4.9% dividend yield.
China in your hands
China’s current economic problems pose a problem to the region’s banks like HSBC Holdings (LSE:HSBA). Continued struggles in the domestic property market in particular are causing headaches across the sector.
It’s my opinion though, that these issues are more than baked into the company’s share price. It trades on a forward P/E ratio of 6.4 times.
In fact, with HSBC shares also carrying a huge 9.4% dividend yield, I think the bank could be one of the FTSE 100’s greatest value shares.
As a patient investor, I’m prepared to take some temporary pain if the long-term outlook’s attractive. And I think this Asia-focused bank has an exceptional opportunity to grow profits as financial services demand takes off.
Research from McKinsey & Company underlines HSBC’s enormous potential. The organisation expects bank sector revenues in Asia to rise around 7-8% over the next five years alone.
By reallocating investment to this emerging market from its traditional territories, HSBC’s putting itself in the box seat to exploit this opportunity too. In June, it snapped up Citi’s retail wealth management portfolio in mainland China.
