While UK dividend stocks have seen their share prices rise recently, there are still some big yields on offer for income investors. According to my data provider, there are nearly 50 stocks in the FTSE 350 index with forward-looking yields of 6% and higher.
Below, I’m going to highlight a stock in the FTSE 250 index that currently sports a yield of around 7%. Could this name be worth considering for an income portfolio?
A UK property stock throwing off tons of cash
The stock in focus today is Primary Health Properties (LSE: PHP). It’s a real estate investment trust (REIT) that’s focused on healthcare properties in the UK and Ireland.
Currently, it has a portfolio of around 1,140 properties (worth a total of around £6bn). The majority of these are GP surgeries, with other properties let to NHS organisations, the Health Service Executive (HSE) in Ireland, pharmacies, and dentists.
At present, the stock trades for around 104p. That means a £5,000 investment would buy 4,793 shares (ignoring trading commissions).
The dividend forecast for the 2026 financial year is 7.31p per share (a 7% yield as noted above). That means that a £5k investment could potentially generate income of around £350 per year.
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A compelling investment case
There’s a lot to like about this stock, in my view.
For a start, a large chunk of the company’s rental income is backed by the UK government (and most of its rental agreements are long term in nature). So, it’s much lower risk than a lot of other REITs.
Secondly, the UK’s rapidly ageing population should provide a long-term growth driver. In the years ahead, demand for healthcare in this country is only likely to rise as the general population gets older.
Third, it has a fantastic dividend growth track record – recently it notched up its 30th consecutive annual dividend increase. There are not many stocks in the market with that kind of track record.
Finally, the shares are in a strong upward trend right now. Note that analysts at Berenberg see the upward trend continuing – they recently raised their target price to 128p from 122p.
What’s are the risks?
Now, the stock isn’t perfect, of course.
One risk to be aware of is that the company recently acquired rival Assura for £1.6bn. This has increased its debt.
At the end of 2025, net debt stood at £3.4bn. This could be a drag on profits (and dividend growth), especially if UK interest rates remain elevated.
The integration of Assura is also potentially a risk. The company is hoping that the deal will create significant synergies, however, acquisitions don’t always go as planned.
Worth a look today
Overall though, I see the risk/reward proposition as very favourable. In my view, this high-yielding UK dividend stock is worth considering for an investment portfolio today.
