6%+ dividend yield stocks! Three I might buy to target a £1,155 passive income for 2025

These dividend stocks could deliver a four-figure passive income in 2025. Here’s why they’re on long-term investor Royston Wild’s radar today.

| 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.

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.

We’re now two-thirds of the way through 2024, so it’s time for me to think about which shares to buy next year. I’m drawing up a list of dividend stocks and have recently added the following three to my shortlist.

Company2025 dividend yield
Alternative Income REIT (LSE:AIRE)8.2%
Central Asia Metals (LSE:CAML)9%
Epwin Group (LSE:EPWN)6%

As you can see, each of these companies provides a dividend yield way north of the 3.5% FTSE 100 average. If City forecasts are accurate, a £15,000 investment spread equally across them would provide me with an £1,155 passive income in 2025.

I think these big-paying shares will grow dividends strongly over the long term too. Here’s why I’m considering adding them to my stocks portfolio.

Should you invest £1,000 in Spirax-sarco Engineering 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 Spirax-sarco Engineering Plc made the list?

See the 6 stocks

The REIT

Penny stocks are usually sought after for their excellent growth potential. But in the case of Alternative Income REIT, this is a share that could prove to be a top pick for dividend income.

This particular small-cap is a real estate investment trust (REIT). As such, it must pay at least 90% of annual rental revenues out in the form of dividends.

Alternative Income rents out a wide variety of properties like hotels, gyms, hospitals and residential apartments. It also has tenants tied down on long contracts (its weighted average unexpired lease term is above 16 years).

Combined, these characteristics give the company strong cash flows across the economic cycle, a critical factor for reliable long-term dividends. That said, it’s worth remembering that earnings and asset values are sensitive to interest rate movements.

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.

The miner

Mining stocks often have wild dividend histories. When commodity prices drop, dividends usually follow suit as profits invariably dip.

Yet despite this danger, City analysts expect Central Asia Metals — which owns copper and lead-zinc assets in Kazakhstan and North Macedonia respectively — to still pay a large dividend in 2025.

They also expect shareholder payouts to grow the year after. I believe the business could deliver solid capital gains and rising dividends over the long term, driven by megatrends like global urbanisation and the expanding green economy.

With cash in the bank of $56.4m as of June, Central Asia Metals has a strong balance sheet to help it pay those large near-term predicted dividends.

The materials supplier

Epwin Group provides a wide range of building materials. These include doors, windows, cladding and drainpipes. As a consequence, it’s in good shape to capitalise on a possible housebuilding boom in the UK. The new Labour government has vowed to build 1.5m new homes through to 2029.

But Epwin isn’t solely dependent on the new-build market to drive profits and dividends. It also supplies considerable volumes to the repair, maintenance and improvement (RMI) market. Given the age of Britain’s housing stock, this should support earnings for years to come.

City analysts expect profits and dividends here to rise every year to 2026 at least. This is despite the danger that interest rates may remain around current highs and limit new homes demand.

But there may be an even bigger investment opportunity that’s caught my eye:

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 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

Investing Articles

These FTSE 100 stocks could be the winners from Trump’s tariffs!

President Trump’s unpopular tariffs caused mayhem on the world’s stock markets this week. But some FTSE 100 stocks bucked this…

Read more »

Investing Articles

Are these 3 sold-off UK shares secretly screaming buys?

Despite the FTSE 100 rising, there are still plenty of struggling UK shares. But are these three sold-off stocks potential…

Read more »

Investing Articles

Is the US stock market set to crash in April?

Panic about a looming stock market crash is spreading, but what could be the tipping point? And what can investors…

Read more »

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

As the stock market has a meltdown, I’m listening to billionaire Warren Buffett

Our writer has been following Warren Buffett in recent weeks by repositioning his portfolio to take advantage of the market…

Read more »

Investing Articles

How much would an investor need in an ISA for a £100k passive income?

Zaven Boyrazian breaks down how much investors need to put aside each month to potentially earn a six-figure tax-free passive…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

In my opinion, this FTSE growth stock looks set to soar over the next 5 years!

Our writer thinks this UK growth stock could benefit from the current excitement surrounding artificial intelligence applications.

Read more »

Investing Articles

0.45x EV-to-EBITDA: this is the cheapest UK stock, IMO

This UK stock has come under increasing pressure in recent weeks, but I don’t think it’s warranted. Here’s a closer…

Read more »

Investing Articles

Can the Rolls-Royce share price hit £13 in the coming year?

After a stunning couple of years for the Rolls-Royce share price, can it keep up its recent momentum? This writer…

Read more »