£9,000 to invest? These 3 high-yield shares could deliver a £657 annual passive income

The high yields on these dividend shares sail sit well above the FTSE 100 average of 3.6%. Here’s why I believe they’re worth a close look.

| 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.

Do you have a stack of money sitting in a savings account? Now could be the time to consider investing in high-yield dividend shares as rates on cash accounts fall.

Here are three passive income stocks that have grabbed my attention:

Dividend shareDividend yield
Dowlais Group (LSE:DWL)7.9%
Tritax Big Box REIT (LSE:BBOX)5.8%
Greencoat UK Wind (LSE:UKW)8.2%

Dividends are never, ever guaranteed. But if broker forecasts are accurate, a £9,000 investment spread equally across these shares would produce a £657 passive income just in 2025.

Should you invest £1,000 in Primary Health Properties 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 Primary Health Properties made the list?

See the 6 stocks

I’m confident that each of these stocks could provide increasing dividends over time, too. Here’s why.

Bumpy road

First off, it’s important to say that Dowlais Group — which builds parts for auto makers — isn’t for the faint of heart. Its share price has plummeted 55% since it listed last spring. It could continue falling too if pressures in the car industry persist.

But looking longer term, I believe the engineer has significant rebound potential. This is because of its focus on the high-growth electric vehicle (EV) segment. Comprising parts of former FTSE 100 stock GKN, it is a leading light in areas like electric powertrain technology.

In the near future, too, Dowlais’ share price could receive a bump if it manages to sell its Powder Metallurgy unit which it put up for sale in August.

With that near-8% dividend yield and low price-to-book (P/B) ratio of 0.2, I think the company merits serious attention at today’s prices.

Boxing clever

I already own Tritax Big Box REIT shares in my Stocks and Shares ISA. As a real estate investment trust, or REIT, it’s designed to provide a steady stream of income to investors.

This is because, in exchange for tax advantages, it must pay out at least 90% of annual rental profits in the form of dividends.

There are almost 50 REITs listed on the London Stock Exchange. Tritax is one of my favourites because of its focus on the chronically undersupplied warehouse and distribution centre market. Like-for-like annualised rents at Tritax rose 5.1% on leases subject to rent review in the first half.

Like other property stocks, its share price could fall if interest rates fail to fall significantly from current levels. But a healthy long-term outlook makes this dividend stock worth serious consideration.

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.

Green machine

Renewable energy stocks have fallen sharply following the US Presidential election. This includes Greencoat UK Wind, which could have further to fall if Donald Trump makes things tougher for green energy providers, souring the broader sector.

I’m confident, however, that renewable energy stocks could bounce back sharply over a longer time horizon. As the climate crisis worsens, I think demand for wind energy and other clean sources might still explode, whoever is in the White House.

Greencoat UK Wind owns wind assets worth £3.6bn across the country, both onshore and offshore. This wide footprint reduces the risk that unfavourable weather conditions in one or two regions pose to group profits.

From a dividend standpoint, I also like the firm’s pledge to raise shareholder payouts in line with retail price inflation (RPI). It’s a policy that ensures my passive income keeps pace with appreciating living costs.

Should you buy Primary Health Properties now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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 Tritax Big Box REIT Plc. The Motley Fool UK has recommended Greencoat Uk Wind Plc and Tritax Big Box REIT 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

4 REITs Fools own for passive income

REITs often have higher-than-average dividend yields compared to other stocks, making them a solid choice to consider for passive income…

Read more »

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »