I’m thinking of boosting my passive income by buying these UK dividend shares. Here are why I’d buy them to hold for the next 10 years.
Primary Health Properties
Medical facility operator Primary Health Properties (LSE:PHP) is a company I actually own some shares in with my Stocks and Shares ISA.
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It’s one of a couple of real estate investment trusts (or REITs) in my portfolio. These shares can be great sources of passive income as they pay a minimum of 90% of their annual earnings out by way of dividends.
Primary Health Properties (PHP) owns and operates more than 500 facilities like GP surgeries in the UK and Ireland. The need for such assets is increasing as elderly populations grow and demand for regular medical care steps higher.
The Office for National Statistics predicts that a quarter of the British population will be aged 65 or above by 2050. PHP is seeking to keep expanding to exploit this opportunity, though the business has recently cooled investment activity on account of higher interest rates and economic uncertainty.
My main concern as an investor is that GP shortages could worsen in the years ahead. A recent Royal College of GPs survey suggested that one in four doctors are considering quitting practicing thanks in part to unmanageable workloads.
But on balance I believe the potential benefits of owning PHP shares outweigh this risk. I especially think it remains highly attractive because of its ultra-progressive dividend policy.
The FTSE 250 firm has raised the annual dividend every year for almost three decades. City analysts expect the shareholder reward to increase for a 28th successive year in 2023, too. And so the forward dividend yield sits at a healthy 6.7%. I plan to hold my PHP shares for years to come.
Triple Point Energy Transition
The growth of green energy is another hot investment trend for the next decade. And Triple Point Energy Transition (LSE:TENT) is a renewable energy stock I’m considering buying to make money from it.
I like the firm’s enormous 7.9% dividend yield for the financial year to March 2023. It’s a reading that moves to an even-better 8.1% for the new fiscal period starting next month.
Triple Point invests capital in a range of technologies that are critical to the clean power revolution. These include battery storage energy systems, hydroelectric energy projects, and co-generation assets, which use steam to produce heat instead of burning fuel.
The energy transition is still in its early days and future environmental legislation could damage the long-term returns of certain technologies. But by investing in different types of assets, the business reduces this risk for its shareholders.
There are several top renewable energy stocks on my radar today. But the cheapness of Triple Point’s shares makes it one of the most attractive to me. At current levels below 70p, they trade at a big discount to the value of the firm’s assets. Its estimated net asset value per share stands north of 100p.
