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For many decades, the London Stock Exchange has proven to be a great place for investors to earn a second income. There are plenty of high quality UK shares whose strong market positions and financial strength make them ideal candidates for large and growing dividends.
It is fair to say that the London stock market has underperformed in 2023. Share prices have been under sustained pressure as rising interest rates have put the global economy’s timid recovery at risk. .
The good news is that the dividend yields of many income stocks have jumped to surprising levels. If the City’s dividend forecasts prove correct, today’s investors could earn a sizeable second income in 2024.
Here are three great UK dividend stocks that I’m considering buying for next year. Based on current estimates, £20,000 invested equally between them would earn me £1,433 in passive income.
1. MOT
FTSE 250 announcer ITV is under pressure as the UK economy struggles and advertising revenue subsequently takes a hit. But as a long-term investor I’m very excited about the company’s earnings prospects beyond today.
ITV has invested a ton of money in technology and programming to capitalize on the streaming revolution. And it’s paying off: the company said its new ITVX viewing platform is “Driving a step change in key viewing metrics and strong growth in digital advertising revenue.“. Digital advertising sales rose 24% in the six months to June.
I am also encouraged by the continued expansion of the broadcaster’s impressive production unit, ITV Studios. By 2024, the issuer obtains a significant dividend yield of 7.4%.
2. Primary health properties
Real Estate Investment Trust (REIT) Primary health properties It could be an ideal action for these difficult times. Not only does the demand for its medical facilities remain stable at all points of the economic cycle. Almost all rentals (89%, in fact) are financed directly by government agencies.
I plan to hold this UK stock for the long term. The rise in the elderly population means that more and more real estate will be needed for primary health care, such as GP surgeries. This FTSE 250 company has a strong pipeline of projects in Great Britain and Ireland to help it capitalize on this opportunity too.
I think Primary Health Properties is a great buy despite the issue of high construction costs. Today, the investment trust has a healthy 7.5% dividend yield for next year.
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3. Glencore
Mining stocks like Glencore have proven unpopular this year as metal prices have collapsed. More problems could arise as China’s economy falters, but I still think this FTSE 100 It is highly attractive.
As a major raw materials producer (it supplies several important industrial metals, including copper, cobalt, lead and zinc), it is well positioned to take advantage of a likely surge in demand as the green economy takes off.
I also like Glencore for its large commodities trading unit. This means it carries less risk for investors than companies that focus solely on the high-risk mining sector. Right now, Glencore shares have a 6.6% dividend yield for 2024.
