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2 high-paying dividend stocks I would buy today

The UK stock market has seen record first-quarter payouts, hopefully setting the tone for the rest of the year. UK stocks, on average, offer a dividend yield of 4.6%now, which certainly is a very attractive figure.

However, I’m on the lookout for low-risk stocks that pay high dividends, which is why I’m investing in the following.

William Hill

William Hill (LSE: WMH) is the first on my ‘to buy’ list. Stocks in the company are currently priced around 136p at the time of writing with a healthy dividend yield of 7.66%. I believe that this yield is not in danger of a cut as William Hill’s revenue has already risen by 4% in the first four months of 2019.

Thanks to its online presence, the company has managed to attract more customers and rake in more money already this year. Online revenue has risen by 8% in the first four months, contributing significantly to that overall 4% rise in company revenue. However, it’s not all sunshine and roses as the company has been affected by a 15% slump in gaming revenue thanks to the maximum stake at its fixed odds betting terminals being cut from £100 to £2 as the games were too addictive. Having said this, an increase in online and US revenue has given the company a strong start to the year.

Chief executive Philip Bowcock is upbeat and said: “There were record actives for Cheltenham and the Grand National reflecting positive underlying customer trends”. The company is also taking off in the US with the CEO adding: “Just one year on since PASPA was overturned, William Hill has doubled the sports wagering it handles in the US, [and has] seen record performances at the Super Bowl and March Madness.” With this in mind, I am certainly planning on investing in William Hill and I am confident in the future of the company and its chunky dividend yield. 

SSE

UK energy company SSE (LSE: SSE) is the next stock on my to-buy list, which may make me a contrarian, but the attractive dividend yield of 8.46% definitely has caught my eye.

SSE has a market cap of £11,638m and is a large, balanced business with sustainable future plans that makes the cash flow more reliable than a smaller company. This gives the company the resilience to maintain dividends and I believe it is worth investing in. Furthermore, the company has reworked its strategy and is focusing more on renewable energy, making it much more sustainable and likely to hold long-term value.

SSE also plans on moving away from supplying domestic energy, giving it more time to focus on new renewable energy plans. It has been losing customers at a significant rate, which has made investors wary but the plan to move away from domestic energy seems to be a valid solution. This leads me to believe that the business has improved financial prospects for the future and could continue to provide strong returns. The company may not have had the best financial year last year, but I expect things to improve this year, thanks to those future plans that could potentially curb any damage from customers leaving.

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fional 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.