These 3 dividend shares can be better purchases than FTSE 100 income shares!

He Ftse 100 It is the main sand for investors seeking to obtain a passive income higher than the average. The tastes of Lloyds, Shell, Legal and generaland Taylor Wimpey They are among the most beloved dividend shares in the London stock market.

Many Footsie companies have qualities that make ideal dividend candidates. These include leading positions in the market in mature industries, wide geographical footprints and solid rock balances.

All this is great, but today I am not interested in talking about the FTSE 100 dividend heroes.

I think there may be better actions from the United Kingdom to buy dividends at this time.

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A new Octopus Investments report has caught my attention this week. Shows that the possible dividend produces the Ftse 250 (By excluding stocks) and he Ftse small cap The index exceeded that on the offer of FTSE 100:

However, this superiority performance is nothing new. As you can see, the dividend yield in small capitalization shares has exceeded the largest piece for the last two years.

And dividends between small companies FTSE Small Cap have the tip to grow strongly between 2025 and 2026, resulting in returns of 4.03% and 4.41% respectively.

Of course, yields are based on runners projections that are not established in stone. However, the high dividend coverage for the next two years provides payment estimates with a lot of steel.

In fact, as you can see, the dividend coverage for the small ftse lid, ftse 250 (ex IT), and Ftse Alternative investment market (AIM) The indices also exceed the FTSE 100:

These higher yields and dividend coverage reflect the expectations that profits outside FTSE 100 are about to take off. According to Octopus Investments: “It is expected that both the FTSE AIM index and the Deutsche Numis smallest index to provide annual profit growth composed of 22% during the two years until December 2026. “

<h2 class="wp-block-heading" id="h-three-top-dividend-stocks“>Three upper dividend shares

I have several Footsie actions in my own portfolio to obtain passive income. But Octopus's research shows that it can also pay for dividend shares from outside the FTSE.

Radiator manufacturer Wheel – With its backward yield of 5.9% and a strong dividend coverage twice, it is a small cap that I am looking at. I'm also considering effort Ramsdens – The dividend yield and dividend coverage here are 5.1% and 2.3 times, respectively.

But Social Housing Reit (LSE: Soho) is at the top of my shopping list today. The dividend yield here by 2025 is 9.2%.

Keep in mind that tax treatment depends on the individual circumstances of each client and may be subject to changes in the future. The content in this article is provided only for information purposes. It is not intended to be, it does not constitute any form of fiscal advice.

The dividend cover is much less impressive, 1.3 times. In theory, this could see that the company underlines dividend forecasts if profits disappoint.

However, the focus of social housing in the stable residential real estate market largely reduces (if it does not completely eliminate) this threat. In addition, tenants often receive financial aid from the central and local governments, providing the collection of additional robustness.

According to the investment trust rules in Real Estate (Reit), at least 90% of the annual rental profits of the company must be paid in dividends. With their strong growth potential, I am sure that the striking dividends in social housing will continue to rise.