3 super-safe dividend shares I’d buy to target a £1,380 passive income!

Looking to maximise your chances of making a large passive income? These FTSE 100 and FTSE 250 dividend shares might be just the ticket.

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Dividends from UK shares are never, ever guaranteed. As we saw during the Covid-19 crisis, even the most generous and financially secure company can postpone, suspend, or axe shareholder payouts when catastrophes happen.

But as investors, we can take steps to minimise the chances of dividend disappointment. Choosing defensive companies that enjoy stable earnings (like utilities, healthcare providers, and food manufacturers) is one tactic.

So is selecting companies with strong balance sheets, market-leading positions, and diversified revenue streams. This can protect earnings when economic conditions suddenly worsen.

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It’s also important to spread one’s capital across a variety of different shares. Such diversification reduces the impact of company and industry-specific factors on investors’ returns.

Three top stocks

With all this in mind, here are three super-safe dividend shares on my watchlist today.

Dividend shareForward dividend yield
Assura (LSE:AGR)8.2%
Legal & General9.5%
Diageo3.1%

As I say, dividends are never a sure thing, and broker projections can sometimes fall short. But if current forecast are correct, a £20,000 investment spread equally across these dividend shares would provide a passive income of £1,380 this year alone.

A top REIT

Assura's dividend history.
Source: TradingView

Out of this bunch, let’s take a deep dive into Assura first. As the chart above shows, this FTSE 250 company has a long history of dividend growth even during times of crisis.

City analysts expect this proud record to continue, too, even as the threat from high interest rates remains.

As a result, the firm’s dividend yields lift to 8.5% for next year, and to 8.6% the year after.

Elevated interest rates depress net asset values (NAVs) for property stocks and can significantly raise their borrowing costs. But the defensive nature of Assura’s operations — it owns and lets out primary healthcare properties, like doctor surgeries — allows it to pay a large and growing dividend each year.

The real estate investment trust (REIT) is expanding rapidly, to help it grow earnings beyond the medium term. But sector rules mean that this expensive programme doesn’t have catastrophic implications for dividends.

Under REIT regulations, Assura must pay a minimum 90% of annual rental profits out in the form of dividends. Combined, these factors make the business a rock-solid income pick in my book.

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.

FTSE 100 dividend stars

Legal & General and Diageo's dividend histories.
Source: TradingView

Combined with Legal & General and Diageo in a portfolio, I think I could enjoy a truly spectacular dividend for years to come. As you can see, these two stocks also have long histories of sustained payout growth.

Financial services firm Legal & General doesn’t operate in a defensive sector. Indeed, future sales may remain vulnerable if interest rates remain high.

But the FTSE 100 firm’s balance sheet has still allowed it to regularly grow dividends over the past decade. And with a Solvency II capital ratio of 223%, it remains cash rich today.

Diageo, meanwhile, is another reliable dividend stock thanks to its strong position in the largely resilient alcoholic drinks market. While it faces extreme competitive pressures, fashionable labels like Guinness and Captain Morgan help to lessen this threat.

I also like the Footsie firm’s wide diversification across different geographies and drinks segments. This provides earnings (and thus dividends) with added stability.

Pound coins for sale — 31 pence?

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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 positions in Diageo Plc and Legal & General Group Plc. The Motley Fool UK has recommended Diageo 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.

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