I think these are among best dividend stocks to buy right now. Here’s why I’m hoping to snap them up, if I have spare cash to invest this month.
Cairn Homes
Investing in residential property can be one of the safest plays during uncertain economic times. We all need somewhere to live, right?
Irish housebuilder Cairn Homes (LSE:CRN) is one such business on my radar today. As in the UK, Ireland is suffering from a huge supply and demand imbalance in the housing market that’s supporting prices. Yet more moderate inflationary pressure in the eurozone means the interest rate threat there is much lower.
Latest trading news today underlines how healthy business remains at Cairn at the moment. Chief executive Michael Stanley said that the firm remains on course to “significantly increase” completions in 2023. It has predicted sales of 1,750-1,800 new homes, up from 1,526 last year.
High build cost inflation remains a danger to earnings. However, the firm is still expected to grow profits this year, thanks to its bulky gross margin (this remains robust at around 21%). As a result, the company trades on a forward price-to-earnings (P/E) ratio of just 9.5 times.
It also means Cairn is tipped to keep increasing the annual dividend. So the company carries a mighty 6.6% dividend yield. The firm’s solid balance sheet — which recently allowed it to launch a €40m share buyback programme — means it should be in good shape to meet current dividend forecasts too.
Assura
Buying real estate investment trusts (REITs) can be another great way to make a passive income. In exchange for certain tax advantages these property shares are required to pay at least 90% of annual rental income out in the form of dividends.
Of course that doesn’t guarantee investors will receive big dividends. Falling profits can have a significant impact on the payouts shareholders receive.
However, disappointing dividends isn’t something that holders of Assura (LSE:AGR) shares need to worry about, at least in the near term. As a major operator of primary healthcare properties it can expect rental income to continue streaming in at impressive levels.
Firstly, the business doesn’t have to worry about rents being missed, whatever the economic climate. Medical facilities like GP surgeries are in high demand, regardless of broader conditions. What’s more, the rental payments it receives are essentially guaranteed by the NHS.
Critically, property shares like this can also effectively link the rents they receive to inflation. This is why Assura’s like-for-like rent rolls increased by a healthy 7.2% during the 12 months to March.
Changes to NHS policy may dent profits and dividend growth here later on. But this looks unlikely as the government aims to reduce hospital numbers by investing in primary healthcare.
Assura is rapidly expanding to capitalise on this favourable environment too. Last week, it completed its 100th development.
For the current financial year the company carries a 7.7% dividend yield. I expect it to be a source of large dividends for years to come.
The post 7.7% and 6.6% yields! 2 of the best dividend stocks to buy this July appeared first on The Motley Fool UK.
Don’t miss this top growth pick for the ‘cost of living crisis’
While the media raves about Google and Amazon, this lesser-known stock has quietly grown 880% – with a:
Greater than 20X increase in margins
Nearly 60% compounded revenue growth over 5 years – more than Apple, Amazon and Google!
A 3,000% earnings explosion
Of course, past performance is no guarantee of future results. However, we think it’s stronger now than ever before. Amazingly, you may never have heard of this company.
Yet there’s a 1-in-3 chance you’ve used one of its 250 brands. Many are household names with millions of monthly website visitors, and that often help consumers compare items, shop around and save.
Now, as the ‘cost of living crisis’ bites, we believe its influence could soar. And that might bring imminent new gains to investors who’re in position today. So please, don’t leave without your FREE report, ‘One Top Growth Stock from The Motley Fool’.
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Royston Wild 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.
I think these are among best dividend stocks to buy right now. Here’s why I’m hoping to snap them up, if I have spare cash to invest this month.
Cairn Homes
Investing in residential property can be one of the safest plays during uncertain economic times. We all need somewhere to live, right?
Irish housebuilder Cairn Homes (LSE:CRN) is one such business on my radar today. As in the UK, Ireland is suffering from a huge supply and demand imbalance in the housing market that’s supporting prices. Yet more moderate inflationary pressure in the eurozone means the interest rate threat there is much lower.
Latest trading news today underlines how healthy business remains at Cairn at the moment. Chief executive Michael Stanley said that the firm remains on course to “significantly increase” completions in 2023. It has predicted sales of 1,750-1,800 new homes, up from 1,526 last year.
High build cost inflation remains a danger to earnings. However, the firm is still expected to grow profits this year, thanks to its bulky gross margin (this remains robust at around 21%). As a result, the company trades on a forward price-to-earnings (P/E) ratio of just 9.5 times.
It also means Cairn is tipped to keep increasing the annual dividend. So the company carries a mighty 6.6% dividend yield. The firm’s solid balance sheet — which recently allowed it to launch a €40m share buyback programme — means it should be in good shape to meet current dividend forecasts too.
Assura
Buying real estate investment trusts (REITs) can be another great way to make a passive income. In exchange for certain tax advantages these property shares are required to pay at least 90% of annual rental income out in the form of dividends.
Of course that doesn’t guarantee investors will receive big dividends. Falling profits can have a significant impact on the payouts shareholders receive.
However, disappointing dividends isn’t something that holders of Assura (LSE:AGR) shares need to worry about, at least in the near term. As a major operator of primary healthcare properties it can expect rental income to continue streaming in at impressive levels.
Firstly, the business doesn’t have to worry about rents being missed, whatever the economic climate. Medical facilities like GP surgeries are in high demand, regardless of broader conditions. What’s more, the rental payments it receives are essentially guaranteed by the NHS.
Critically, property shares like this can also effectively link the rents they receive to inflation. This is why Assura’s like-for-like rent rolls increased by a healthy 7.2% during the 12 months to March.
Changes to NHS policy may dent profits and dividend growth here later on. But this looks unlikely as the government aims to reduce hospital numbers by investing in primary healthcare.
Assura is rapidly expanding to capitalise on this favourable environment too. Last week, it completed its 100th development.
For the current financial year the company carries a 7.7% dividend yield. I expect it to be a source of large dividends for years to come.
The post 7.7% and 6.6% yields! 2 of the best dividend stocks to buy this July appeared first on The Motley Fool UK.
Don’t miss this top growth pick for the ‘cost of living crisis’
While the media raves about Google and Amazon, this lesser-known stock has quietly grown 880% – with a:
Greater than 20X increase in margins
Nearly 60% compounded revenue growth over 5 years – more than Apple, Amazon and Google!
A 3,000% earnings explosion
Of course, past performance is no guarantee of future results. However, we think it’s stronger now than ever before. Amazingly, you may never have heard of this company.
Yet there’s a 1-in-3 chance you’ve used one of its 250 brands. Many are household names with millions of monthly website visitors, and that often help consumers compare items, shop around and save.
Now, as the ‘cost of living crisis’ bites, we believe its influence could soar. And that might bring imminent new gains to investors who’re in position today. So please, don’t leave without your FREE report, ‘One Top Growth Stock from The Motley Fool’.
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setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#FFFFFF’);
})()
More reading
The largest FTSE 100 stock just fell 8%! Should investors buy?
Vodafone shares are near 52-week lows and yield 10%+. Should I buy?
Should investors consider or avoid Sainsbury’s shares for a dividend portfolio?
New field start-up and China recovery makes BP share price look cheap to me
3 top stocks for the second half of 2023
Royston Wild 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.
