But what about if you’re searching for double-digit dividend yields? No problem. Take the following three stocks: The Renewables Infrastructure Group (LSE:TRIG), Octopus Renewables Infrastructure Trust (LSE:ORIT), and JPMorgan Nasdaq Equity Premium Income ETF (LSE:JEPQ). Each has a forward dividend yield above 10%, and a long record of paying market-beating cash rewards.

And I’m confident they can continue delivering brilliant income streams to investors. Want to know why?

Tech titan

Exchange-traded funds (ETFs) can be a great way to source a passive income. These can hold a wide variety of assets, helping to protect shareholders from individual shocks and providing a smoother return.

The JPMorgan Nasdaq Equity Premium Income ETF — which has a 10.8% dividend yield — is one such diversified fund to consider. It holds Nasdaq 100 US tech stocks which it then sells covered calls on. When out-of-the-money call options are sold, the income is paid to investors in dividends.

It’s a more complicated way to make income from the stock market. A focus on growth shares also means the fund could drop sharply in value during economic downturns. Yet over time, the ETF has proved a great dividend generator and one I expect to keep outperforming.

Renewable energy giant

Investment trusts that focus on renewable energy are another top income source to consider. This is because interest rate pressures and worries over a slower-than-expected green transition have pushed prices lower, supercharging dividend yields.

Octopus Renewables Infrastructure Trust now carries a 10.5% forward dividend yield. Could it rebound in value soon? I think so, with further Bank of England interest rate cuts on the horizon.

There’s a lot I like about the trust from a dividend perspective. Like other electricity producers, its operations are highly defensive and provide a steady flow of cash that can be returned to shareholders. I also like its wide, Europe-wide geographic footprint — this doesn’t eliminate the threat of weather-related disruptions, but it lessens the danger as localised calm conditions have a smaller impact on total power production.

An income stock I own

The Renewables Infrastructure Group is a renewable energy stock I’ve actually bought for my portfolio. And with a 10.7% forward yield, it’s one I think investors should seriously consider.

Why did I plump for this particular operator, you ask? With more than 80 assets on its books, it has an even wider footprint to protect against isolated operational problems. These are also spread across Europe, but that’s not all — its portfolio comprises onshore and offshore wind farms, solar projects, and battery storage assets, meaning it’s also well diversified by technology.

Lower electricity prices have been a problem of late. I’m confident, though, it will remain a robust passive income generator and that it’s share price will rebound following recent weakness.

The post 10%+ dividend yield! 3 passive income shares, trusts, and funds to consider! appeared first on The Twelfth Magpie.

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 Twelfth Magpie.

With this in mind, here are two top shares I think are worth a close look this July.

Octopus Renewables Infrastructure Trust

Investing for growth has been more challenging for renewable energy stocks in recent times. Two major new UK wind farms — including Hornsea 4, which was to be the world’s largest offshore wind farm — have been cancelled since 2023 due to costs and supply chain issues.

Amid signs that these pressures are easing, and given the bright long-term outlook for green energy categories, I think Octopus Renewables Infrastructure Trust (LSE:ORIT) is a top stock to consider.

UK investors have a swathe of renewable energy shares to choose from today. What I like about this particular one is its diversified approach: its assets span much of Europe and Scandinavia and multiple energy sources. This helps reduce the impact of potential geographic and technological risks at group level (for instance, weak wind currents that impact energy production in Britain).

This provides added strength to a stock that already enjoys strong earnings predictability, and therefore the means to consistently pay a large and growing dividend. Indeed, cash rewards from Octopus have risen each year since it listed on the London stock market in 2020.

City analysts are confident it can keep raising dividends and pay a targeted 6.17p per share dividend in 2025. This would mark the fourth successive year of dividend growth matching the UK Consumer Price Index (CPI) target, and results in a huge 8.2% dividend yield.

Like many energy producers, Octopus Renewables looks in good shape to deliver a stable and market-beating dividend income, then. But it’s not without its risks. Its profits and share price could come fall if interest rates suddenly rise. The trust could also drop if governments’ green energy policies become less favourable.

But, on balance, I think it’s worth seriously considering an investment here.

Assura

Healthcare and real estate stocks can be among the most reliable dividend providers over time. As a major owner and operator of primary healthcare properties in the UK, Assura (LSE:AGR) allows investors to enjoy the best of both worlds.

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.

As with Octopus Renewables, this FTSE 250 dividend stock has a solid record of unbroken payout growth. This stretches back more than a decade, as its operations are largely unaffected by broader economic conditions. The government also essentially guarantees a large portfolio of its rental income.

There are risks here, too, such as interest rate dangers and changing government health policy. But things at least look stable on the latter front: in fact, demand for primary healthcare centres is rising as the NHS tries to reduce the strain on the country’s jam-packed hospitals.

Analysts expect Assura to raise its annual dividend again in the financial year to March 2026. A total payout of 3.32p is predicted, yielding 6.6%. I think this real estate investment trust (REIT) will remain a top dividend stock for years to come.

The post 2 dividend growth shares to consider for a reliable passive income! appeared first on The Twelfth Magpie.

Here’s one idea I think’s worth considering.

Details to note

I’m talking about the Octopus Renewables Infrastructure Trust (LSE:ORIT). It has a current dividend yield of 8.81%, with the stock down 5% in the past year.

The investment company focuses on generating income and growth for shareholders by investing in renewable energy assets across Europe, the UK, and Australia. This includes projects like offshore wind farms, solar parks, and battery storage facilities.

It makes money primarily by selling electricity produced by its renewable energy assets. Given that these are often sold as part of long-term contracts, it historically has good predictable cash flow. This makes it appealing for income investors.

From the dividend side, it typically pays out money each quarter. It has a policy to increase its dividend target in line with inflation. So compared to the 6.02p total from 2024, the announcement was made at the start of this year that it would be raised by 2.5%. As a result, the total payout for this year should be 6.17p.

When I consider the current share price of 69p, this would equate to a yield of 8.94%. If I assume inflation runs at 2.5% for this year, 2026 could see a dividend raised to 6.32p. Using the the current share price again, this would translate to a yield next year of 9.16%.

Fighting inflation

Having a clear dividend policy with the aim of increasing the income by the pace of inflation is great. In theory, it allows an investor to not have their income eroded by inflation over time.

However, it’s not always possible to do this. For example, if inflation spiked suddenly to a very high level, management might not be able to honour the policy. After all, the business is only able to generate a certain amount of profit. It would struggle to boost the dividend by X% if earnings for the year only increase by Y%.

A risk is that interest rates stay higher for longer in the UK, putting pressure on finances. Large-scale projects are partly funded by debt. So if the interest rate doesn’t fall as fast as some are expecting, the funding costs will be larger than anticipated. This could filter down to lower profit.

Even with these concerns, I believe the trust is an excellent option for sustainable income. The fact that it operates in the renewable energy sector should also mean it has long-term demand.

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But how did British dividend stocks perform in 2024? And what can investors expect in the current year?

Dividend growth to slow?

According to financial services provider Computershare, total dividends rose 2.3% year on year in 2024, to £92.1bn, thanks to a high proportion of special dividends.

But it wasn’t all good news. Excluding special dividends and currency movements, shareholder payouts dropped 0.4% over the period, to £86.5bn. This reflected dividend cuts from the mining sector.

Encouragingly, the number crunchers at Computershare expect headline dividends to increase again in 2025. But growth is tipped to slow to a crawl as special dividends return to more ‘normal’ levels.

In the current year, analysts think dividends will reach £92.7bn at a headline level, up 0.7% from 2024. This is expected to be driven by a 1% rise in underlying payouts (at constant exchange rates), to £88.2bn.

Median dividend growth is tipped to be in the 4%-4.5% range, roughly matching 2024’s 4.5% increase. Yet Computershare reckons that large payout cuts (like the upcoming one from Vodafone/Three) will weigh on the market total.

Funds or individual stocks?

Investing in a FTSE 100 tracker fund is a popular way for investors to generate dividends. But I think there are better methods of targeting a passive income, given the prospect of weak payout growth in 2025 (and potentially beyond) across the broader market.

For instance, I think buying shares in real estate investment trust (REIT) Tritax Big Box is worth serious consideration. Dividends here are expected to rise by a market-beating 6% this year. This results in a large 5.7% dividend yield.

I expect the warehouse operator to deliver a large passive income despite the threat of interest rate pressures continuing this year. Under REIT rules, it must pay 90% or more of annual rental earnings out in dividends.

I also think Persimmon merits close attention. Total dividends here are also tipped to increase 6% in 2025. And so the dividend yield is a chunky 5.1%.

Encouraged by recent strong housing data, analysts think earnings (and therefore dividends) will rise strongly in 2025. That’s even though Stamp Duty changes in April could impact new-build demand.

Renewable energy

Octopus Renewables Infrastructure Trust (LSE:ORIT) is another top income share to consider. City analysts predict dividend growth for 2025 to be a more modest 3%. However, in my view this is more than offset by the company’s mighty 9.3% dividend yield.

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.

Investing in renewable energy stocks can be a rough ride when unfavourable weather conditions damage power generation. But Octopus’s diversified model helps reduce this risk. It owns solar, wind, battery storage and hydrogen assets across six European countries (including the UK).

Trading at a 37.9% to its net asset value (NAV) per share, I think it’s worth serious attention from fans of big-paying value shares.

The post Looking for dividend growth? 3 top passive income shares to consider today appeared first on The Twelfth Magpie.

Healthy dividend cover

The first one is the Octopus Renewables Infrastructure Trust (LSE:ORIT). The trust invests in a range of renewable energy projects, including wind and solar plants. It also has exposure to energy storage systems.

It makes money via the infrastructure it invests in, such as by selling the energy to consumers. This creates good cash flow, which then can be used to pay out dividends to investors.

Over the past year, the share price has fallen by 24%. Part of the reason for this is “challenging macroeconomic conditions”, which the management team flagged in the half-year report. This includes interest rates staying higher for longer, causing new debt to be more expensive to fund projects for Octopus.

However, the dividend cover is at a healthy 1.33 times, meaning that the current earnings per share easily cover the dividend payments. Further, there are exciting new initiatives set to start shortly, including a new power purchase agreement with Sky UK starting in April. These should help to boost revenue in the coming year.

The dividend yield of 8.76% is very attractive. Although the risk of interest rates staying elevated for 2025 remains, it’s clear that the company has been able to deal with this in 2024.

Diversified infrastructure exposure

A second company for investors to consider is HICL Infrastructure (LSE:HICL). The stock provides investors with exposure to a diversified portfolio of essential public and private infrastructure assets. These include hospitals, schools, and transport networks.

It makes money by having long-term contracts with government entities, local authorities or private operators. The income received from these contracts provides the cash flow to pay out to shareholders. To this end, the current dividend yield is just below 7%.

It’s true that the share price is down 14% over the last year. This is one factor that has pushed up the yield. The drop can partly be explained by a fall in the valuation of the assets in the portfolio. As the share price should closely track the net asset value of the portfolio, this makes sense. This remains a short-term risk for investors this year.

Investors might find this infrastructure stock appealing not only because of the high yield but also due to the diversified portfolio. It has exposure to a wide variety of projects, as well as different clients. This should protect it against a black swan event in one particular area.

Overall, both income stocks could be attractive for dividend investors to contemplate including going forward.

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Victoria Hasler, head of fund research at Hargreaves Lansdown, notes that

Rising interest rates have led to their income streams looking less attractive than they once did, rising discount rates have impacted asset valuations, and active managers have struggled in markets led by a few big stocks.

She also notes that “over the last couple of years we have seen some good quality investment trusts trading on hefty discounts“. This remains the case as we head into the New Year.

So I’m searching for the best value trusts to consider today. Here are two of my favourites.

Octopus Renewables Infrastructure Trust

Donald Trump’s return to the presidency has sent a shockwave across renewable energy stocks. Even companies with little-to-no exposure to the US have slumped following November’s election.

This provides a terrific dip buying opportunity in my opinion. One such business that’s caught my attention is Octopus Renewables Infrastructure Trust (LSE:ORIT).

At 63.5p per share, it trades at a huge 38.7% discount to its estimated net asset value (NAV) per share of 103.6p.

Recent share price weakness has also turbocharged Octopus’ dividend yield to 9.5%. To put this in context, the average for FTSE 100 shares is way back at 3.6%.

I like this trust because of the excellent diversification it offers. It generates power from offshore and onshore wind turbines as well as from solar farms. This allows consistent power generation across all seasons, and boosts efficiency by using technologies that are tailored to different environments.

With assets across the British Isles, Finland, Germany, and France, it can also remain profitable despite poor weather or regulatory issues in one or two regions.

Importantly, it also has no exposure to the US, removing uncertainty over the future of green policies under President-elect Trump.

Such fears — however impractical — may continue to weigh on Octopus’ share price. But over the long term I think it could prove a robust investment.

Gore Street Energy Storage Fund

The Gore Street Energy Storage Fund (LSE:GSF) shares several characteristics with the Octopus trust.

Its share price has declined due to falling confidence in renewable energy. This is because demand for its technologies are tied to growth in the renewables sector, where they provide a stable flow of energy even during unfavourable weather.

Gore Street is also vulnerable to higher interest rates that dampen asset values and increase borrowing costs.

But like Octopus, it also offers excellent value I find hard to ignore. At 50.6p per share, the trust trades at an 49.7% discount to its NAV per share of 100.7p.

Meanwhile, its forward dividend yield is a staggering 13.9%.

This is another share with considerable long-term potential as the world switches away from fossil fuels. Bloomberg estimates the global energy storage market will experience an annual growth rate of 21% between now and 2030.

And Gore Street is rapidly expanding to supercharge long-term revenues. Operational capacity leapt 45% in the 12 months to September, to 421.4 MW.

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When a stock falls in value, a couple of things could get triggered. One is that it could become a cheap share that’s undervalued. The other is that the dividend per share makes up a larger proportion of the share price, increasing the dividend yield. As a result, I’m always screening to try and find stocks that are worth buying on the dip. Here are two I’ve spotted recently.

A man’s best friend

The first one is Pets At Home Group (LSE:PETS). The stock is down 21% over the past year, with a current dividend yield of 4.41%.

Part of the reason for the move lower in the stock is due to the investigation by the Competition and Markets Authority (CMA). The launch of the investigation into the vet sector is related to concerns that certain products are being overcharged by sellers. This would include Pets At Home, although no wrongdoing has been found as yet.

As for financial results, the 2023 annual report was a mixed bag. Revenue jumped by 5.2% versus the previous year. However, pre-tax profits fell by 13.7%, driven by higher costs.

I think the stock looks cheap given that the latest update from earlier in August shows the business on track to increase profits versus last year. It looks to me like the management team agrees, as it recently announced a £25m share buyback programme.

The results of the investigation are a risk going forward, but at the same time if no issues are found then it could actually help to lift the share price as a result.

Investing in the future

Another idea is the Octopus Renewables Infrastructure Trust (LSE:ORIT). Down 18% over the past year, the trust has seen the dividend yield rise to 7.70%.

As the name suggests, the management team focuses on investing in a diversified portfolio of renewable energy assets across Europe, the UK and Australia. From the sale of the output from these assets, Octopus is able to generate high levels of cash flow. From there, it can afford to pay regular quarterly dividends to shareholders.

In the latest annual report, the fall in the share price was put down to “the difficult macroeconomic conditions which included falling power prices and a relatively poor year for wind speeds”. The risk is that this continues over the course of 2024.

However, even with earnings per share down in 2023, the dividend cover was still 1.18. A figure above 1 means that the dividends are completely covered by the latest earnings. It’s not massive cover, but makes me think that if the money can still be paid during a bad year, things are fine.

Looking to the long term, renewables like wind are the future. I expect demand to increase going forward.

Adding up the pounds

I’m considering adding both stocks to my portfolio. If I invested £250 a month in both, my combined dividend yield would be 6.05%. If I kept investing and bought the shares with my subsequent dividends too, things would grow quickly.

After a decade, my pot could be worth £78,676. This means that the following year, it could pay me out an average of £396 in income per month.

The post These 2 cheap shares could bank me £396 a month in second income appeared first on The Twelfth Magpie.

Several sustainable investment trusts offer opportunities for a stable income. These closed-end entities, designed to invest in a range of sustainable assets, often iron out the volatility that individual sustainability shares may be subject to.

When selecting which ones to invest in, I examine their dividend yield and net asset value (NAV) per share, or total assets minus liabilities, divided by the number of issued shares. So, if a trust’s shares are trading at a discount, then it provides an indication that its share price is lower than its NAV per share.

This discount suggests the market values securities/assets in the trust to be below their comprehensive NAV value. It may offer an opportunity for profiting through higher value realisation later in the trading cycle while banking potentially regular dividends.

My three top picks are:

1. NextEnergy Solar Fund

As its name suggests, NextEnergy Solar Fund (LSE: NESF) invests in large scale solar farms and related technologies like energy storage. This FTSE 250 fund currently has a 10.32% yield and aims to provide shareholders with regular quarterly dividend payouts.

It offers investors a diversified asset portfolio to mitigate risk. Additionally, most of NextEnergy Solar Fund’s long-term cash flows are inflation-linked via UK government subsidies, providing a further layer of income protection. Its NAV discount is currently at 32.78%.

2. Octopus Renewables Infrastructure Trust

Octopus Renewables Infrastructure Trust (LSE: ORIT) is an impact fund that combines income returns with capital growth, by primarily investing in a portfolio of renewable energy assets across the UK and Europe. With a diverse portfolio like many of its peers, this fund also participates in active renewables construction and management.

Through its investment manager, Octopus Energy Generation, it also plays an active role managing renewables construction risks and maximising the value of its portfolio. It prioritises social and environmental benefits alongside financial returns. It has a current yield of 8.5% and a NAV discount of 36%.

3. The Renewables Infrastructure Group

Managed by InfraRed Capital Partners, The Renewables Infrastructure Group (LSE: TRIG) was one of the first investment trusts to move into the sustainability sphere. More than a decade on from its 2013 listing, it is now a FTSE 250 company.

Its portfolio comprises of onshore and offshore wind farms and solar parks in the UK and Europe. This trust generates sustainable returns with a current yield of 7.24% and a NAV discount of 24%. Its managers also retain some of their portfolio’s capital each year through reinvestment of surplus cash after payment of dividends.

Pros and cons

Investors may need to do background research and gauge their suitability in line with investment objectives and risk appetite. For me, current holdings of all three trusts highlight long-term investments in sustainability and revenue reserves for maintaining dividends in learner times.

However, some investors may find their double-digit NAV discounts disconcerting despite their attractive pricing and dividend yields. Equity-focused trusts in other sectors may offer higher returns. Ultimately, their competitive dividend yields that match returns from mainstream investment trusts and low-cost entry barriers appeal to me. Therefore, I will be buying more of these three trusts’ shares.

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In need of repair

The first company is Crest Nicholson (LSE:CRST). It’s one of the leading property developers in the UK. over the past year, the stock is down 14%.

The property sector in general has endured a tough couple of years, ever since interest rates started to rise and inflation surged. Higher inflation means that it’s a lot more costly to build properties. At the same time, high interest rates makes it harder for people to get a mortgage and afford to buy a property.

A 14% fall in the past year has compounded the 55% drop over a broader three-year period. This is why I flag it up as a value stock. The property market is cyclical. Over the next couple of years, I expect interest rates to fall and economic growth to increase. This should support higher demand for housing and better financial results for Crest Nicholson.

However, the firm has also been hit recently with building defects that could cost £15m to fix. Therefore, even though I like the sector in general, I’d prefer to buy a different homebuilder from the FTSE 100 or FTSE 250 that has fewer company-specific issues.

A value stock I like

The second underperformer is Octopus Renewables Infrastructure Trust (LSE:ORIT). The fund aims to provide generous dividend income by investing in a diversified portfolio of renewable energy assets. This isn’t just in the UK, but rather the portfolio includes sites across Europe and even Australia.

Over the past year, the stock is down 29%. I should note that the share price movements are different to the net asset value (NAV) movements of the fund. So the share price is currently trading at a 33% discount to the last reported NAV. This is where I think the value lies going forward.

The fall in the stock can be attributed to what the 2023 annual report noted as “a challenging backdrop both for the asset class and the investment trust sector as a whole.” Lower power prices are also to blame. Risks remain, but there’s nothing I note that should have caused such a large reaction in the share price over the year.

On that basis, I think that the trust is a smart value buy to consider. I’m also influenced by the 8.14% dividend yield. Given the focus of the trust on paying out income, I don’t see this under immediate threat of being cut. Therefore, I can look to benefit from the high yield while waiting patiently for a recover in the stock. I’m thinking about buying the trust now, but staying away from Crest Nicholson.

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