With this in mind, I’ve dug out three of the hottest global dividend stocks to consider today. These are The Renewables Infrastructure Group (LSE:TRIG), Western Union (NYSE:WU), and Henderson Far East Income (LSE:HFEL).

Not only do these income shares carry double-digit dividend years. They also have strong records of dividend distribution behind them, which should allay any fears of them being classic dividend traps. Want to know what makes them in my view so great? Read on…

Green giant

The Renewables Infrastructure Group offers an 11.4% dividend yield for 2026. For next year the reading moves to 11.5%. These are no pie-in-the-sky forecasts — excluding 2021, annual payouts here have risen every year since the stock listed in London in 2013.

But what makes it such a reliable (and big-paying) dividend share? It owns a highly diversified portfolio of renewable energy assets, delivering a predictable cash flow across the economic cycle. Earnings and dividends are also boosted by long-term, inflation-linked contracts with energy suppliers.

Like any renewable energy share, power generation (and by extension) shareholder returns are at the mercy of weather conditions. However, Renewables Infrastructure smoothes out this risk by building wind and solar assets across Europe, which maintains strength at group level.

A top US stock

Western Union’s dividend yields sit at 10% for 2026 and 10.1% for 2027 respectively. Yields have leapt as the share price has declined, reflecting the impact of new fintech companies on its operations.

Put simply, people have a wide choice of options when it comes to sending payments. But in its 125-year history, Western Union has adapted to technological changes and evolving consumer habits. And it has a few tricks up its sleeve to remain profitable, from shifting further into digital payments and away from cash-based agents, to expanding into fast-growth regions.

Last year, for instance, saw Western Union link up with regional operators in Latin America and Saudi Arabia to win new customers. I think it could be a great dip buy to consider — as well as having those double-digit yields, it trades on a forward price-to-earning (P/E) ratio of just six times.

Look east

Henderson Far East Income is listed on the London Stock Exchange. But it’s a great investment vehicle to consider for those hunting international dividend shares.

The trust holds a total of 74 companies spread across Asia including China, South Korea, Hong Kong, and Singapore. This leaves it more vulnerable to regional stress than one with a wider wingspan. But it also means robust returns, reflecting the stunning economic growth of these countries.

Dividends have risen at a steady (if unspectacular) 1.6% each year over the last five years. City analysts expect further growth in 2026, meaning a gigantic 10.8% dividend yield.

Henderson Far East’s annual dividends have risen for 18 straight years, better than most other UK income-paying stocks. I think it’s a brilliant stock to consider for long-term passive income.

The post 10%+ dividend yields! 3 global income stocks to consider for the long term appeared first on The Motley Fool UK.

A focus on Asia

One share that could be considered right now is Henderson Far East Income (LSE:HFEL). The investment trust currently has a dividend yield of 9.9%, with the share price up 10% in the last year.

The business (as the name suggests) focuses on investing in Asian companies with dividend potential. It then aims to distribute the bulk of the income received as dividends to shareholders. The share price should closely track the net asset value of the trust’s holdings. So the rise over the past year reflects the fund’s successful stock picking.

Some will criticise the performance recently, saying that if the fund had owned more Asian growth stocks, the gains could have been even higher. This is true, but it misses the point of what the trust was set up for. It’s geared towards sectors like banking and telecoms that operate in mature areas. Instead of crazy capital growth, it’s focused on high-dividend areas.

Looking forward, I think this could do well. Tech valuations are high, and so having exposure to more defensive sectors in the market could help to protect the trust performance if we do see a stock market correction.

Building a proper portfolio

Let’s say an investor had just opened a Stocks and Shares ISA to build a second income. The limit for investing in the ISA is £20k a year. For argument’s sake, let’s say this £20k was allocated all to Henderson Far East Income. In theory, for the coming year, this could pay £1,980 just from the cash.

Over time, I don’t think it makes sense to put everything into just one income stock though. The company has risks. For example, it’s concentrated in just a few sectors, and just in the Asian geography. If this part of the world suffers a slowdown due to China or emerging market volatility, it’s a risk.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

But that doesn’t mean that the ISA can’t aim to generate an average yield of 9.9%. There are other stocks with yields in this region. If an investor included other shares in the portfolio alongside Henderson Far East Income, it would act to diversify the risk.

After a decade of keeping up the £20k annual investment, the portfolio could generate just over £39k in income the following year. Of course, this isn’t guaranteed, as dividends might get reduced in the future. This could mean it takes longer to achieve a certain income goal. However, it shows clearly the potential to grow an empty ISA with the right strategy.

The post This income share could transform an empty ISA into a £39k second income appeared first on The Motley Fool UK.

To that end, here is one UK stock I think income-focussed investors should consider.

Almost a double-digit dividend yield

The share in question is Henderson Far East income (LSE: HFEL).

At first glance, some of the attractions are apparent.

This investment trust manager says that it “looks to maximise the growing opportunities for high-income investing”, specifically in the Asia-Pacific market. It has a progressive dividend policy, meaning it aims to grow the dividend per share annually – as it has been doing over recent years.

It pays dividends quarterly. That  can be helpful in terms of providing regular passive income flows.

I like the fact that these are paid like clockwork, although of course no share’s dividend is ever guaranteed to last.

Until recently, Henderson Far East Income had a double-digit percentage yield. But with the share price having put on 27% since April, the yield has fallen.

Still, at 9.8%, it remains firmly in the high-yield category!

Disappointing share price performance

But when looking for stocks to be, a juicy yield can be a red flag. Might that be the case here?

For starters, Henderson Far East Income sells at a premium to its net asset value. It might be more attractive if it sold at a discount, but on the other hand the mere fact of the premium can be interpreted positively as a sign of investor demand for the share.

While the share has done well since Aprll, the longer-term picture has not been appealing. Over five years, the share price has fallen 24%.

Partly that reflects economic uncertainty in some key Asian markets. But I think it also points to a concern some investors have as to how sustainable the dividend may be.

This is always a worthwhile question to explore when looking at investment trusts with income as an objective. Are they earning big dividends from their own portfolio, or are they using share sales or other means to help prop up the dividend, thus eating into the capital or increasing the total dividend cost?

The second approach can work sometimes but often has a long-term cost as payouts can grow harder to maintain, let alone increase.

Can this dividend level be maintained?

Last year, Henderson Far East Income spent £43m paying equity dividends.

That is a smidgen more than its £42m net cash inflow from operating activities. The trust did not provide a breakdown of what came from dividends received versus proceeds from selling shares it owned.

Still, either way, that meant dividend payments swallowed the entire net operating cash flow. The trust can and does raise funds from non-operating activities, such as bank loans and selling shares.

So, the dividend could keep growing annually in line with the target. But I see a risk that it will not, given how much the dividend costs relative to operating cash flows.

But Henderson Far East Income does have a well-diversified portfolio giving it exposure to a region with ongoing strong growth opportunities. I see it as a share for income investors to consider.

The post Looking for UK stocks to buy for income? This one caught my eye! appeared first on The Motley Fool UK.

Take Henderson Far East Income (LSE:HFEL), iShares US Equity High Income (LSE:INCU), and Greencoat UK Wind (LSE:UKW). These British dividend shares today carry dividend yields north of 9%.

To give you a flavour of what this could mean for your pocket, a £20,000 investment spread across all three will (if forecasts are accurate) provide a £1,980 passive income this year alone. Want to know what makes them hot stocks to consider?

Strength in depth

Dividends are never, ever guaranteed. So spreading one’s exposure across a wide range of companies, industries, and regions can protect against individual shocks and deliver a steady flow of income over time.

This is why I like the Henderson Far East Income investment trust, which currently yields 10.6%. This pooled vehicle holds £488m of assets spread across 71 companies. These range from banks and telecoms providers, to miners, consumer electronics manufacturers, and carmakers.

Furthermore, these businesses operate all over Asia, reducing the trust’s dependence on one or two countries to drive returns. Key regions include economic powerhouses China, South Korea, and Singapore.

Investing in emerging markets can be volatile at times. But over the long term, Asia has proven a top destination for targeting large profits. I’m confident this can continue as wealth levels and population sizes in this region balloon.

A top ETF

The iShares US Equity High Income fund has the same benefits of diversification. At 9.1%, too, its forward dividend yield is more than three times greater than the FTSE 100 offers.

This exchange-traded fund (ETF) holds an even larger pool of assets than Henderson Far East Income, in fact. Holding 307 different companies, it provides even better protection from individual dividend shocks.

Its aim is “to generate income and capital growth with lower volatility than the broader US equity market“. So it holds a large number of lower-yielding dividend shares than funds that focus purely on income.

That said, this ETF also has significant cash holdings and investments in US government bonds to give its dividend credentials a boost. Its focus on US shares leaves it more regionally exposed than global funds. But on balance, it’s still a top pooled investment vehicle to consider.

Income machine

Greencoat UK Wind is the highest-yielding income stock we’re looking at today. Like many energy producers, it enjoys enormous cash flows it can return to shareholders, resulting in a market-beating yield. Today its forward reading is 10.6%.

But are renewable energy stocks more risk than they’re worth right now? It’s true they’ve fallen in popularity in recent years, reflecting higher interest rates that have driven up borrowing costs and depressed asset values. The cost of building new wind farms has also jumped lately.

Yet companies like Greencoat UK Wind still have excellent investment potential in my view. Their ultra-defensive operations still make them excellent dividend providers. And they’re well placed to grow earnings and shareholder payouts as green energy demand steadily rises.

Companies like this should also benefit in the near term as the Bank of England trims interest rates.

The post Fancy a 9%+ dividend yield? 3 top passive income stocks to consider appeared first on The Motley Fool UK.

Take the following large- and mid-cap shares: Octopus Renewables Infrastructure Trust (LSE:ORIT), Henderson Far East Income (LSE:HFEL) and Regional REIT (LSE:RGL). The dividend yields on these shares are enormous, coming in at 10% (or just above) for 2026.

I think investors should consider these UK shares for a large and growing dividend income. Want to know why?

A top REIT

As a real estate investment trust (REIT), Regional REIT must pay at least 90% of property rental profits out in dividends each year. This is in exchange for juicy tax breaks like protections from corporation tax.

This rule doesn’t guarantee a substantial and increasing passive income on its own. But it provides greater dividend visibility than most other dividend shares provide.

Regional REIT can sometimes experience occupancy issues that impact earnings. Rent collection issues can also naturally spring up during downturns. However, the investment trust’s large portfolio helps to reduce such threats to shareholder returns.

The company had a total of 740 tenants spread across 123 properties at the midpoint of last year. For 2026, the dividend yield here is a gigantic 10.3%.

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.

Look East

Henderson Far East Income is an investment trust that holds shares in 68 different Asian companies. For this year, it offers an even-higher 10.6% dividend yield.

Investing in emerging markets can be a wild ride at times. Economic and political conditions can change rapidly, impacting corporate earnings (and by extension, shareholder returns) for better and worse.

But Henderson Far East been able to navigate such volatility and still deliver excellent dividends. This is thanks in part to its diversified portfolio that spans different countries and sectors. It also reflects the excellent stock-picking pedigree of its management team.

Annual dividends here have risen every year for around two decades. I’m expecting them to keep growing as Asia’s developing economies rapidly expand.

10.7% dividend yield

Octopus Renewables Infrastructure is one of the top 10 highest-yielding investment trusts in the UK. This is thanks to its strong cash flows that support large dividends year after year.

As a renewable energy producer, the company benefits from steady demand across the economic cycle. This alone doesn’t guarantee stable cash flows and profits. Clean electricity sources are famously sensitive to weather conditions — when the wind doesn’t blow, for instance, power generation can fall off a cliff, impacting earnings.

But Octopus’s diversified portfolio helps reduce this threat. It produces power from onshore and offshore wind farms and solar assets. It also owns battery storage plants. And what’s more, its projects can be found across the UK, Ireland and Mainland Europe, reducing exposure to any single weather pattern.

I think this could be a great long-term income stock to consider as the green energy transition accelerates.

The post Looking for New Year income stocks? Here are 3 top 10% yields appeared first on The Motley Fool UK.

Simply looking at yield alone however, tells us nothing about what may happen in future. After all, no dividend is ever guaranteed to last. A dividend yield is a snapshot of what a company is paying now, not necessarily what it will do in future.

Still, some high-yield shares have indeed kept on paying or even growing their dividend per share annually in recent years.

Phoenix Group and M&G are examples from the FTSE 100. But, as many passive income hunters know, the blue-chip index is not the only place to look for high-yield shares.

An investment trust yielding over 10%

For example, Henderson Far East Income (LSE: HFEL) has a market cap of £441m, far less than any FTSE 100 firm. It is an investment trust, meaning that it owns stakes in a variety of different companies.

Perhaps most interestingly from a passive income perspective, it has a dividend yield of 10.6%. It also aims to grow its dividend per share each year.

Diversifying across different firms

One of the things I like about the investment trust structure is that it often offers an investor access through a single share to a diversified portfolio.

This is true of Henderson Far East Income. It owns stakes in a few dozen companies with connections to Asia, such as Taiwan Semiconductor Manufacturing and Samsung Electronics.

That helps it gain exposure to fast-growing Asian economies, as well as benefiting from the export potential of some Asian companies. But the geographic concentration also brings the risk that if Asian economies perform weakly, the trust may too.

Not just about owning shares

There is another risk I see. That is the trust’s ownership of derivatives that let it buy shares at a certain price, or may oblige it to sell them at a given price.

Options trading can be profitable, but it also introduces an element of risk beyond that of owning a share in a company itself. If the company does well but its share price moves in a way the option writer has not anticipated, they can potentially lose money.

The options help explain why the trust offers a double digit percentage yield even though some of its shareholdings have low yields (its biggest position is in Taiwan Semiconductor Manufacturing, currently yielding 1.1%).

Some of the money comes from dividends in shares it owns: the trust focuses on cash flow generation potential from “companies with the ability to sustain and grow dividends”. But the cash to fund the dividend can also come from any profits made on writing options.

By writing options on shares it owns, the trust can hopefully aim to benefit from long-term price appreciation — and potentially also gain financially from unexpected price swings.

One to consider

That brings risks of its own though, such as writing options that turn out poorly. Funding the dividend can eat up a lot of resources.

Despite its high yield, the trust’s share price has fallen 26% over the past five years.

Still, I like the strong income story here. From a passive income perspective, I see this as a share for investors to consider.

The post This UK passive income share offers a 10.6% yield. Here’s how! appeared first on The Motley Fool UK.

With this in mind, here are three stocks with a yield above 10% to consider.

Henderson Far East Income: 10.2% dividend yield

Investing in emerging markets can sometimes be a bumpy experience. Political and economic conditions in regions like Asia can be volatile, impacting returns.

This hasn’t stopped Henderson Far East Income (LSE:HFEL) delivering large and growing dividends over time, though. Cash rewards have grown each year since the mid-2000s.

This reflects the investment trust‘s decision to prioritise passive income over growth. It’s also due to its wide range of holdings spanning different sectors and parts of the Asian continent. This diversified approach provides a smooth return over the economic cycle, and protects investors from weakness in specific industries and regions.

In total, Henderson Far East Income has holdings in 71 highly cash generative businesses. These include companies with enormous dividend yields like China CITIC Bank, Telkom Indonesia, and Evergreen Marine Corp Taiwan.

Roughly 58% of the trust’s assets are currently located in China, Hong Kong, and Taiwan. This leaves it vulnerable to current tough conditions in the region’s largest economy. But it could also help it outperform when the Chinese economy rebounds.

Global X SuperDividend ETF: 10% dividend yield

The Global X SuperDividend ETF (LSE:SDIP) offers similar diversification benefits that reduce risk and can enhance long-term returns.

This exchange-traded fund (ETF) also focuses on high dividend yield businesses across sectors, but does so with a more global flavour. US shares make up its largest single weighting, at 26% of the portfolio. Other well-represented countries include Brazil, Hong Kong, and the UK, providing investors with the stability of developed markets and the growth potential of emerging regions.

In total, Global X SuperDividend has 106 different holdings, including popular FTSE 100 stocks M&G and Phoenix.

Be mindful, though, that a high weighting of financial services stocks may impact performance during economic downturns.

NextEnergy Solar Fund: 13.8% dividend yield

Renewable energy producers like NextEnergy Solar Fund (LSE:NESF) can be among the most stable dividend shares out there.

Electricity demand remains pretty inelastic across the economic cycle, giving predictable cash flows across the economic cycle. Profits can dip during periods of unfavourable weather, but largely speaking these companies are pretty reliable for passive income.

NextEnergy holds particular appeal for me given weather-related uncertainties. It has 101 solar assets spread across nine countries, a diversified footprint that helps compensate for poor conditions in certain places.

This has supported consistent growth in annual dividends since NextEnergy listed in 2014. Encouragingly, the investment trust is increasingly focusing on battery storage to diversify revenue streams and further reduce the weather factor, too.

The post Fancy a 10%+ dividend yield? 3 passive income heroes to consider appeared first on The Motley Fool UK.

By holding a wide selection of shares, these trusts draw income from a mix of companies, industries and regions, thus reducing the impact of dividend shocks from one or two holdings.

With this in mind, here are three top investment trusts to consider. Today, their forward dividend yields comfortably beat the FTSE 100‘s 3.3% average.

Asia focus

Henderson Far East Income (LSE:HFEL) seeks to capture the enormous investment potential of Asian markets. From a dividend perspective it’s a high performer, having risen annual payouts each year since 2007.

Dividends are also on the large side, and for this year its yield is an enormous 10.2%.

Focusing just on Asia means it carries greater regional risk than global funds. Yet this strategy also leaves it laser-focused on some of the world’s largest and fastest-growing economies like China, India and the Philippines.

In total, this Henderson Fund holds shares in 73 different companies, ranging from cyclical shares such as Taiwan Semiconductor Manufacturing and HSBC to defensive stocks including Power Grid Corporation of India. This balances the portfolio nicely and provides a more stable return across the economic cycle.

Euro star

The European Assets Trust (LSE:EAT) has a more continental flavour than Henderson Far East Income. Some 70% of its funds are wrapped up in eurozone nations, with non-euro-trading European nations accounting for almost all the rest.

Again, this narrow regional strategy carries higher risk. But that’s not all — as with those other trusts we’ve discussed, more than 90% is allocated to shares in cyclical and sensitive industries. This can leave it vulnerable during economic downturns, as illustrated by recent dividend cuts.

The good news though, is that this allocation means each of the trusts can outperform when conditions improve. In this case, major holdings include building materials supplier Heidelberg Materials and Bank of Ireland.

European Assets Trust carries a robust 5.9% dividend yield for 2025. Despite its recent problems, I think it’s worth serious consideration.

Closer to home

The Chelverton UK Dividend Trust (LSE:SDV) has raised yearly dividends reliably since the early 2010s. For 2025, it carries a Footsie-busting 8.4%.

You’ll see this is another investment trust focused on a specific region. In this case, its success is highly geared to Britain’s economy which — if many forecasters are correct — could experience prolonged growth issues. Some 92% of it is tied up in UK-listed shares, which may be a problem.

Yet Chelverton’s ability to overcome similar issues over the last decade and deliver healthy regular growth is a good omen. Since 2020, annual payouts have grown at a decent yearly rate of 6.3%.

The trust holds shares in 66 companies in total spanning multiple sectors. These are as diverse as financial services, consumer goods, energy and telecoms, providing excellent balance.

The post 3 high-dividend investment trusts to consider for passive income appeared first on The Motley Fool UK.

But, at the moment, I’m seeing a handful with higher yields I think deserve a closer look.

One is Alternative Income REIT (LSE: AIRE), with a forecast 8% dividend yield. It’s a real estate investment trust, and it invests in a broad range of commercial properties in specialist sectors.

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.

Tough decade

The share price has recovered reasonably well since the pandemic days. But it’s had a poor decade overall, down 31%.

That price fall, though, has helped build up a decent discount to net asset value (NAV). The company reported a NAV per share of 83.6p at 30 June. And with the shares currently selling for 70.7p, that’s a 15% discount.

The main risk has been the company’s debt, with a £41m loan coming due in October. With interest rates relatively high, the cost of refinancing it could impact on the dividend.

But on 3 September, the trust announced a new long-term refinancing facility with HSBC UK Bank, the local HSBC Holdings subsidiary. Financing costs have risen. But the company expects its next full-year dividend to fall only modestly — from 6.2p per share to 5.6p. And that’s the 8% yield — forecasts already had the dip built in.

Long-term debt fears, plus an uncertain outlook for real estate, could weigh on future dividends — which are never guaranteed. But I have this on my list of possible buys.

Look east

The world might be gripped by trade friction between the US and China these days. But I reckon anyone who writes off the Asia Pacific region as an investment could be making a mistake.

That brings me to Henderson Far East Income (LSE: HFEL), which invests where its name suggests. The dividend yield? Forecast at a whopping 10.2%.

We’re looking at another rocky share price ride here, with a fall of around 38% since late 2017.

There’s one thing I think is essential for stock market investors, and this investment trust had it in spades — I’m talking diversification. Henderson Far East holds interests in China, Taiwan, Korea, Australia, India, Indonesia, and other countries. And it invests in financial services, technology (including AI), consumer goods, communications… a wide range of sectors.

We don’t have a discount to NAV here. In fact, the stock is currently on a 4.5% premium. So there’s perhaps a bit less safety margin. But in its interm report, the company said its “performance both in NAV and share price total return terms was positive over one, three, five and ten years“.

I can see geopolitical risk continuing for some time yet — especially with the end results of the US tariff war so very unknown.

But who thinks we’ll see strong economic growth and shareholder returns from the Far East in the coming decades? You might want to join me in considering buying some of this one.

The post 2 investment trusts with high dividend yields to consider buying right now appeared first on The Motley Fool UK.

Investors like me could buy an annuity product with their nest egg for a guaranteed income. Alternatively, they might draw down a percentage of their portfolio. That plan of action could fund their retirement for 20-30 years.

But my preferred option is to plough my money into a range of dividend stocks. That way, I have a chance to receive an income stream that grows over time, unlike an annuity where cash rewards are fixed. And I won’t erode my capital, which is a major drawback of drawdown strategies.

There is one big danger of this strategy, however: dividends are never, ever guaranteed. However, a diversified portfolio of dividend-paying shares can help investors substantially reduce this risk.

Targeting a near-£69k passive income

But how much could an investor make with this strategy? That depends on the size of their nest egg by retirement, and the dividend yields on the shares that they buy.

Let’s say we have an investor who puts away £514 a month in growth and dividend shares over 30 years. That’s the average amount that Brits invest each month, according to Shepherds Friendly.

If they can achieve an average annual return of 8% each year, they would — after 30 years — have built a retirement fund of £766,045. This could then generate a yearly passive income of:

• £38,302 if invested in 5%-yielding dividend shares
• £45,963 if invested in 6%-yielding dividend shares
• £53,623 if invested in 7%-yielding dividend shares
• £61,284 if invested in 8%-yielding dividend shares
• £68,944 if invested in 9%-yielding dividend shares

Trust exercise

These projections show the appeal of investing in high-yield dividend shares. The problem is that this strategy carries higher risk, as the largest yields often come from shares struggling with weak earnings or poor balance sheets.

But as I said at the top, building a diversified portfolio can greatly reduce the risk of trouble for investors. This can be achieved cheaply and simply with a dividend-based investment trust. Take the Henderson Far East Income (LSE:HFEL) trust for instance.

As its name suggests, this investment vehicle is set up “to maximise the growing opportunities for high-income investing in the Asia-Pacific market“.

This means it carries more regional risk than trusts that hold shares from across the globe. Yet, it’s still quite well diversified in my view, holding 75 shares across sectors as diverse as financial services, utilities, real estate, and information technology. This depth has given Henderson Far East Income the strength to consistently raise annual dividends since 2007.

There’s another big advantage to this particular trust. By focusing on high-growth nations like China, India, Taiwan, and Indonesia, it has the scope to deliver substantial capital gains and an abundant and growing passive income. It’s a strategy that’s so far proved highly effective, and City analysts are tipping another year of dividend growth in 2025, leaving a huge 10.6% forward dividend yield.

While dividend shares carry risks, a well-planned strategy — perhaps with the use of investment trusts like this — can potentially deliver a large and growing retirement income.

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