3 super-safe dividend shares I’d buy to target a £1,380 passive income!

Dividends from UK shares are by no means, ever assured. As we noticed throughout the Covid-19 disaster, even essentially the most beneficiant and financially safe firm can postpone, droop, or axe shareholder payouts when catastrophes occur.

However as traders, we are able to take steps to minimise the probabilities of dividend disappointment. Selecting defensive firms that get pleasure from secure earnings (like utilities, healthcare suppliers, and meals producers) is one tactic.

So is deciding on firms with robust stability sheets, market-leading positions, and diversified income streams. This will defend earnings when financial situations instantly worsen.

It’s additionally necessary to unfold one’s capital throughout a wide range of completely different shares. Such diversification reduces the affect of firm and industry-specific components on traders’ returns.

Three prime shares

With all this in thoughts, listed below are three super-safe dividend shares on my watchlist at present.

As I say, dividends are by no means a positive factor, and dealer projections can generally fall brief. But when present forecast are appropriate, a £20,000 funding unfold equally throughout these dividend shares would supply a passive earnings of £1,380 this 12 months alone.

A prime REIT

Out of this bunch, let’s take a deep dive into Assura first. Because the chart above exhibits, this FTSE 250 firm has an extended historical past of dividend development even throughout occasions of disaster.

Metropolis analysts anticipate this proud file to proceed, too, even because the risk from excessive rates of interest stays.

Consequently, the agency’s dividend yields carry to eight.5% for subsequent 12 months, and to eight.6% the 12 months after.

Elevated rates of interest depress internet asset values (NAVs) for property shares and may considerably increase their borrowing prices. However the defensive nature of Assura’s operations — it owns and lets out major healthcare properties, like physician surgical procedures — permits it to pay a big and rising dividend every year.

The true property funding belief (REIT) is increasing quickly, to assist it develop earnings past the medium time period. However sector guidelines imply that this costly programme doesn’t have catastrophic implications for dividends.

Below REIT laws, Assura should pay a minimal 90% of annual rental income out within the type of dividends. Mixed, these components make the enterprise a rock-solid earnings choose in my guide.

Please be aware that tax remedy is dependent upon the person circumstances of every shopper and could also be topic to vary in future. The content material on this article is offered for info functions solely. It’s not meant to be, neither does it represent, any type of tax recommendation.

FTSE 100 dividend stars

Mixed with Authorized & Common and Diageo in a portfolio, I feel I may get pleasure from a very spectacular dividend for years to return. As you’ll be able to see, these two shares even have lengthy histories of sustained payout development.

Monetary companies agency Authorized & Common doesn’t function in a defensive sector. Certainly, future gross sales could stay susceptible if rates of interest stay excessive.

However the FTSE 100 agency’s stability sheet has nonetheless allowed it to repeatedly develop dividends over the previous decade. And with a Solvency II capital ratio of 223%, it stays money wealthy at present.

Diageo, in the meantime, is one other dependable dividend inventory because of its robust place within the largely resilient alcoholic drinks market. Whereas it faces excessive aggressive pressures, trendy labels like Guinness and Captain Morgan assist to minimize this risk.

I additionally just like the Footsie agency’s extensive diversification throughout completely different geographies and drinks segments. This offers earnings (and thus dividends) with added stability.