Peak Hours News – Investing tips, Stock, Economy News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Economy

3 dividend shares with 10% yields to buy right now?

by December 2, 2022
written by December 2, 2022

When we look for dividend shares offering high yields, we generally tend to think FTSE 100, don’t we? Instead, today I’m looking at three FTSE 250 stocks all with forecast dividend yields of 10% or more.

First though, a general caution. Forecasts need to be treated carefully, and analysts are often among the last to respond to changing circumstances. Still, I think healthy forecasts can provide a useful start for our dividend searches.

Direct Line

Direct Line Insurance Group (LSE: DLG) shares have lost 24% over the past 12 months. And they’re down 43% in five years.

That’s helped push the forecast dividend yield up to 10.5%. Analysts see that holding over the next couple of years too, at least for now.

The main downside for me is that cover by earnings has been a bit thin in recent years, and income is falling this year. In the first nine months, total gross written premiums dropped 3.5%. Still, in these tough times, I see that as a decent performance.

At the halfway stage, CEO Penny James had said: “We … are confident in the sustainability of our regular dividends as we look ahead to the full year and beyond.“

The economy has worsened since then, but that’s still encouraging. I’ll be watching for full-year results in March.

Jupiter

Jupiter Fund Management (LSE: JUP) has seen its shares drop 45% over the past 12 months. But there has been something of a mini recovery going on since mid-October.

Even after the recent rebound, the forecast dividend yield still stands at a whopping 13.5%. Are the shares still cheap? Well, the company itself seems to think so, and is busy snapping them up as part of its buyback programme.

It started in October, aiming to buy back up to £10m in shares. That’s modest compared to some we see. But it does improve my confidence in the company’s ability to generate cash to sustain long-term dividends.

The next couple of years might be a bit tough, though. And I certainly wouldn’t assume the share price weakness is over yet.

Vistry

November saw the biggest monthly house price fall in two years, down 1.4% since October. Wouldn’t that make Vistry (LSE: VTY) a poor bet now?

Shares in the housebuilder formerly known as Bovis Homes have dropped 44% in the past 12 months.

But this latest housing dip simply takes us back to just before price rose 1.4%, which isn’t very long ago. In fact, domestic property is still 4.4% more expensive than a year ago.

Vistry’s predicted dividend yield now stands at 10%, with the share price depressed. I can see the risks of slower property sales over the next couple of years. And the dividend could well fall in the short term. In fact, I think it’s very likely to.

But the UK’s chronic housing shortage isn’t going away.

Verdict

These three stocks all have something in common. They’re all in sectors that could be hit during a recession, and all have been shunned by investors. I think contrarian investors might like that.

The post 3 dividend shares with 10% yields to buy right now? appeared first on The Motley Fool UK.

Should you invest £1,000 in Direct Line right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Direct Line made the list?

See the 6 stocks

setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()

More reading

FTSE 100 to surge above 8,500! Is time running out to buy cheap shares?

2 income stocks to supercharge passive income generation!

The Direct Line share price fall has pushed the dividend up to 10%!

2 FTSE 250 shares with dividend yields of up to 10.4%!

2 discounted dividend stocks to supercharge passive income generation!

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Jupiter Fund Management Plc. 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.

0 comment
0
FacebookTwitterPinterestEmail

previous post
How I would maximise a stocks and shares ISA in 2023
next post
How I’d take advantage of a stock market crash in 2023

You may also like

If you don’t understand it, don’t invest in...

January 31, 2023

I’d start buying shares with £500 – by...

January 31, 2023

Should I buy Diageo shares after their recent...

January 31, 2023

Yields of up to 8.9%! Should I buy...

January 31, 2023

Why investing in Tesla stock could be a...

January 31, 2023

2 dividend stocks that are dirt-cheap right now

January 31, 2023

ASOS shares have rocketed 65% in January. Should...

January 31, 2023

If I’d invested £1k in Pearson shares one...

January 31, 2023

My top 2 stocks to buy in February

January 30, 2023

3 reasons to buy easyJet shares, and 1...

January 30, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent Posts

  • If you don’t understand it, don’t invest in it

    January 31, 2023
  • I’d start buying shares with £500 – by doing this

    January 31, 2023
  • Should I buy Diageo shares after their recent fall?

    January 31, 2023
  • Yields of up to 8.9%! Should I buy these FTSE 100 dividend stocks in February?

    January 31, 2023
  • Why investing in Tesla stock could be a smart move despite its high valuation

    January 31, 2023

Categories

  • Economy (12,603)
  • Editor's Pick (873)
  • Investing (371)
  • Stock (3,266)
About Us Terms & Conditions Privacy Policy Email WhiteListing Contact Us

Disclaimer: Peakhoursnews.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 PeakHoursNews.com. All Rights Reserved.


Back To Top
Peak Hours News – Investing tips, Stock, Economy News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick