Global stock markets recorded their biggest monthly fall in March since September 2022. Swathes of growth and dividend shares have slumped in value as tension over ‘Trump Tariffs’ have grown.
None of us have a crystal ball to predict market movements in April. But with new trade tariffs set to begin merely hours from now, and worries over the geopolitical landscape also growing, traders and investors should be braced for more turbulence.
I don’t believe investors should head for the hills though. Here are two dividend shares to consider. I think they could still deliver great returns in the current climate.
The PRS REIT
Real estate investment trust The PRS REIT (LSE:PRSR) isn’t totally immune to the impact of import taxes. A trade war between the US and UK could fuel inflation which, consequently, means interest rates remain higher for longer.
But on balance, I think its focus on the residential rentals sector makes it attractive safe haven to consider. We all need a roof over our heads, so income streams remain resilient at all points of the economic cycle.
Indeed, PRS REIT collected 99% of the rents it was owed in the six months to December. Occupancy was also extremely high at 97% (including reserved homes).
The company’s focus on family homes — a market segment which is especially undersupplied — gives it added strength to grow earnings even in tough times. Rent hikes meant corresponding revenues rose £26.6m in the second half of 2024, up 16% year on year.
Government plans to supercharge UK housebuilding could temper future rent growth. But I’m optimistic they will continue rising at a strong rate, driven by the booming domestic population.
PRS REIT’s dividend yield is 3.7% for this financial year (to June), rising to 3.9% for fiscal 2026.
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Primary Health Properties
Another REIT stock worth consideration in uncertain times is Primary Health Properties (LSE:PHP). Like PRS, it operates in an extremely stable industry, namely the development and letting of medical facilities.
What’s more, almost 90% of the rents it receives are guaranteed by government bodies like the NHS, providing earnings visibility with added strength. Rent collection and occupancy levels were both above 99% in 2024.
Robust demand for Primary Health’s modern properties also reflects severe market shortages across the UK and Ireland. In Britain, around a third of first-contact medical centres are designated unfit for purpose.
This chronic problem has seen dividends here rise for 28 straight years, including a 3% hike in 2024 to 3.9p per share.
There’s another good reason why both Primary Health and PRS REIT are reliable dividend payers. Under REIT rules, total dividends must represent at least 90% of annual rental profits each year.
Primary Health’s robustness could be compromised by changes to health policy. But I’m optimistic government strategy will remain favourable to the company, given the lower patient costs that primary care involves versus secondary care.
For 2025, Primary Health’s dividend yield is a large 7.4%.
