6.6%+ yields! UK dividend shares I’d buy to aim for a passive income of £1,433

I think UK shares could make me a market-beating passive income in 2024. Here’s why I’m aiming to buy them when I next have cash to invest.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Businesswoman analyses profitability of working company with digital virtual screen

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

For many decades, the London Stock Exchange has proved a great place for investors to make a second income. There are stacks of top-quality UK shares out there whose strong market positions and financial robustness makes them ideal candidates for large and growing dividends.

It’s 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 in jeopardy.

The good news is that dividend yields on many income stocks have leapt to eye-popping levels. If City dividend forecasts prove correct, investors today could make a fat second income in 2024.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Here are three excellent UK dividend shares I’m considering buying for next year. Based on current estimates, £20,000 invested equally across them would make me £1,433 in passive income.

1. ITV

FTSE 250 broadcaster ITV is under pressure as the UK economy struggles and ad revenues subsequently suffer. But as a long-term investor I’m quite excited by the company’s profits possibilities beyond today.

ITV has invested a tonne of money in technology and programming to capitalise on the streaming revolution. And it is paying off handsomely — the company said that its new ITVX viewing platform is “driving a step change in key viewing metrics and strong growth in digital advertising revenue“. Digital ad sales leapt 24% in the six months to June.

I’m also encouraged by steady expansion of the broadcaster’s impressive production unit ITV Studios. For 2024 the broadcaster carries a large 7.4% dividend yield.

2. Primary Health Properties

Real estate investment trust (REIT) Primary Health Properties could be an ideal stock for these difficult times. Not only does demand for its medical facilities remain steady at all points of the economic cycle. Almost all of the rents (89% in fact) are funded directly by government bodies.

I plan to hold this UK share for the long haul. Growing elderly populations mean that more and more primary healthcare real estate like GP surgeries will be needed. This FTSE 250 firm has a strong pipeline in Britain and Ireland to help it capitalise on this opportunity, too.

I think Primary Health Properties is a great buy despite the problem of elevated construction costs. Today the investment trust carries a meaty 7.5% dividend yeld for next year.

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.

3. Glencore

Mining stocks like Glencore have proved unpopular this year as metals prices have sank. More trouble could be coming as China’s economy splutters, but I still think this FTSE 100 is highly attractive.

As a major commodities producer — it supplies several important industrial metals including copper, cobalt, lead, and zinc — it is well placed to exploit a likely demand surge as the green economy takes off.

I also like Glencore because of its large raw materials trading unit. This means it carries less risk to investors than companies that concentrate solely on the high-risk mining sector. Right now Glencore shares carry a 6.6% dividend yield for 2024.

This AI stock is becoming a digital juggernaut in a £ 12.5 billion market!

🤖 Curious about the next big player in AI? 🤖

Our leading industry analysts have uncovered a trailblazing content platform that's revolutionising the industry with its unparalleled generative AI technology, setting new standards in creativity and efficiency.

Care for a sneak peek?

Trusted by global giants like Amazon, Disney, and Netflix, this innovative company is not just transforming digital media with AI-generated 3D content but is also capturing a significant share of a £12.7 billion market!

With a remarkable 62% gross margin, indicating exceptional profitability and operational efficiency, this company's growth trajectory positions it as a must-watch for savvy investors.

Best of all, we're offering exclusive access to the name of this game-changing stock, absolutely free!

Discover your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Primary Health Properties Plc. The Motley Fool UK has recommended ITV and Primary Health Properties Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

We think earning passive income has never been easier

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing Articles

Investing Articles

At 7x forward earnings, this could be the FTSE 100’s biggest winner in 2025

Many of us will be considering which stocks will rise to the top of the FTSE 100 in 2025. Dr…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
US Stock

Warren Buffett has owned this stock for 60 years. Should I buy it today?

Jon Smith takes a look at one of the earliest stocks that Warren Buffett bought and muses over whether he…

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

After a 50% decline in Q4, is now the time to buy Vistry shares?

Stephen Wright thinks a falling share price could be his chance to buy shares in a UK housebuilder with a…

Read more »

Burst your bubble thumbtack and balloon background
Investing Articles

Nvidia stock: a modern-day digital tulip bubble?

With Nvidia stock up over 2,200% in 5 years, Andrew Mackie assesses whether it’s in bubble territory, or fairly priced.

Read more »

Growth Shares

3 reasons why the hottest FTSE 100 sector last year could struggle in 2025

Jon Smith explains why the roaring returns from one FTSE 100 sector last year might not continue due to valuations…

Read more »

Investing Articles

The only UK stock I own at the start of 2025

As 2025 begins, Muhammad Cheema looks at his favourite UK stock. He also discusses why it’s the only one he…

Read more »

Dividend Shares

3 UK dividend growth shares to consider in 2025 for rising passive income

Picking the right dividend shares can potentially generate a rock-solid income stream that continually gets larger over time.

Read more »

Investing For Beginners

2 UK stocks that could be impacted if the US introduces trade tariffs

Jon Smith looks at the UK stocks that could come under pressure this year if the US starts to adopt…

Read more »