2 dividend shares to consider for a supercharged passive income!

Whether done through a lump sum or a steady regular investment, considering these dividend shares could seriously boost investors’ wealth.

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We’re all looking for ways to boost our passive income in 2025 and beyond. Here are two dividend shares that I think deserve a close look.

The PRS REIT

Market conditions remain rock-solid in the residential rentals market. In fact rental growth’s accelerating, which bodes well for real estate investment trusts (REITs) like The PRS REIT (LSE:PRSR).

According to Rightmove, average monthly private rents increased 9.1% in the 12 months to November. At £1,319 a month, growth sped up from 8.7% in October. Last month’s rise was also just off March’s record high of 9.2%.

Should you invest £1,000 in The Prs Reit 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 The Prs Reit Plc made the list?

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Britain’s homes shortage is driving rents through the atmosphere. And it’s showing no signs of letting up amid a rising national population, weak housebuilding activity, and an growing exodus of buy-to-let investors.

Fresh research from the National Residential Landlords Association shows 31% of private landlords plan to sell up in the next two years. That’s up from 22% three years ago and 18% in 2018.

Shortages are especially pronounced in the family home segment, the area of choice of PRS REIT.

Against this backdrop, City analysts think the company’s earnings will rise 11% this financial year (to June 2025). Healthy growth of 8%’s predicted for the following year too. As a result dividends are expected to rise steadily over the period. This results in above-average dividend yields of 4% and 4.1% for fiscal 2025 and 2026 respectively.

Such projections reflect REIT rules that govern dividends. In exchange for certain tax breaks, these trusts must pay at least 90% of rental profits each year out in the form of dividends.

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.

Investing in property stocks is riskier than usual in the current inflationary climate. Stubborn inflation may encourage the Bank of England to keep interest rates above recent norms, depressing net asset values (NAVs) and pushing up borrowing costs.

But on balance, I think the potential benefits of PRS REIT shares outweigh the risks and they’re worth considering.

Schroder European Real Estate Investment Trust

My second selection — the Schroder European Real Estate Investment Trust (LSE:SERE) — is, as the name implies, another property stock.

This particular company owns retail, industrial and office assets across Continental Europe. More specifically, it lets out properties in high growth regions and cities such as Paris, Berlin, Frankfurt and Hamburg.

This diversification by sector and country allows it to spread risk while also harnessing multiple investment opportunities. In its own words, it focuses on places that “offer a competitive advantage in terms of higher levels of GDP, employment and population growth; differentiated local economies with higher value industries; well-developed infrastructure; and places where people want to live and work“.

A sluggish eurozone economy could harm its share price next year. But an attractive long-term outlook makes the trust worth serious consideration, in my opinion.

Oh, and at current prices its dividend yields for 2025 and 2026 are a chunky 9%.

But here’s another bargain investment that looks absurdly dirt-cheap:

Like buying £1 for 31p

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 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.

We think earning passive income has never been easier

Do you like the idea of dividend income?

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