Dividend stocks provide opportunities for shareholders to generate a passive income stream through dividend payments. In this article, we highlight five UK shares listed on the FTSE 250 and AIM segments of the LSE that have proven very reliable in delivering regular attractive high dividend yields. The PLCs are Duke Capital, Arbuthnot Banking Group, Diversified Energy Company, Real Estate Credit Investments and Fidelity China Special Situations.
Duke Capital Limited (LON:DUKE) is an AIM-listed provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
In Duke’s recent FY ’24 results, it’s high-yielding dividend stood out. It paid investors 2.8 pence per share, which equates to an impressive 8.6% yield with the share price at 32.5 GBX on 2 April 2024. According to Hardman’s research, this was more than covered by free cashflow of 4.3 p/sh, recuring cashflow of 3.5 p/sh and adjusted EPS of 4.85p (up 55%).
Real Estate Credit Investments Limited (LON:RECI), a stable quarterly paying high dividend UK stock and specialist investor in the United Kingdom and Western European real estate markets with a focus on fundamental credit and value.
RECI paid four interim dividends of 3.0 pence per Ordinary Share (i.e. 12 pence per share in total) for the year ended 31 March 2024. This equates to a high-income yield of 10.4% at 31 March 2024.
Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.
FCSS has increased its dividend in every year since inception with the most recent annual dividend offering a historic yield of 3%. The trust was awarded Kepler’s Income & Growth rating for 2024.
Arbuthnot Banking Group PLC (LON:ARBB), trading as Arbuthnot Latham, provides private and commercial banking products and services in the United Kingdom. Arbuthnot Banking Group paid a total dividend of 46.00p (equating to a yield of 4.6%) for the financial year end 31/12/23. It has a current yield of 5.05% that is well covered by earnings.
Diversified Energy Company Plc (LON:DEC) is a consolidator of mature natural gas producing assets in North America. It’s at the forefront of U.S. natural gas producers in its commitment to ESG goals and stewardship of its assets.
Hargreaves Lansdown states DEC’s dividend yield is over 26% based on its last reported annual dividend and its current buy price of 852.50 GBX. Diversified Energy has already declared two dividends of 29.00¢ each for Q1 and Q2 2024 payable in September and December 2024.
