The 2020 stock market crash provides a terrific opportunity for UK share investors to make a fortune. The number of Brits who made millions in Stocks and Shares ISAs in the aftermath of the 2008–09 banking crisis is perfect evidence of this. They bought UK shares at rock-bottom prices and watched them balloon in value as the global economic recovery kicked in.
A sea of dividend postponements, cancellations, and cuts means that 2020 has been a nightmare for many dividend investors. But there remain plenty of UK shares that should continue doling out big shareholder payouts despite the uncertain economic outlook.
3 dividend stocks with BIG yields
I’ve continued buying dividend-paying UK shares for my own ISA. And the big yields at these income stocks have attracted my intention, too:
- Getting exposure to gold-producing UK shares remains a good idea right now. According to the World Gold Council, holdings in global gold-backed exchange-traded funds (or ETFs) rose again in August. They rose for the ninth consecutive month and hit a new record high of 3,824 tonnes. It’s unlikely that soaring gold demand is likely to fall, either, as Covid-19 uncertainty rolls on and central banks keep pumping out money. Tensions over Brexit and US-led trade wars – a major driver of gold prices even before coronavirus – should keep bullion prices rising too. I’d buy shares in Highland Gold Mining to ride this theme. This UK share boasts a 5.4% dividend yield.
- I wouldn’t touch Anglo Pacific Group shares with a bargepole, though. While gold prices look good to hit new all-time peaks before long it’s likely that coal prices will continue heading in the opposite direction. Royalties from Anglo Pacific’s revenues-driving Kestrel coal mine tanked in the first half as prices dropped. In the short term more falls could be in the offing due to fragile demand from China. And the hunt for greener energy sources casts a shadow over the longer-term outlook. I don’t care about Anglo Pacific’s monster 8.3% dividend yield. This UK share simply carries far too much risk.
- I’d be much happier buying shares in water supplier United Utilities. It’s not just that the ultra-defensive operations should allow it to continue paying big dividends. It’s that with interest rates at rock-bottom rates – and threatening to even go negative – this FTSE 100 share has plenty of wiggle room to service its debt without having to compromise on dividends. I’d buy it today because of its 5.2% dividend yield for 2020.
Make a million with UK shares
United Utilities and Highland Gold are just two of the top income stocks that UK share investors can buy today. Dividends might still be falling like dominoes following the Covid-19 outbreak and the subsequent economic malaise. But investors still have a chance to make a lot of money with UK shares in the short term and beyond. And The Motley Fool’s huge trove of special reports can help you supercharge your returns. So do some research and keep investing today!
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Anglo Pacific. 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.