3 juicy UK shares I own for passive income and growth!

This Fool explains her reasoning as to why she added these UK shares to her holdings and details how they could boost her wealth.

| More on:

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.

Diverse group of friends cheering sport at bar together

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.

sdf

One of my biggest investment aims is to buy UK shares that pay consistent dividends to boost my passive income. This is despite the fact that dividends are never guaranteed.

Let me explain why I bought shares in Primary Health Properties (LSE: PHP), Warehouse REIT (LSE: WHR), and Regional REIT (LSE: RGL).

All three stocks are set up as real estate investment trusts (REITs). They make income from properties and must return 90% of profits to shareholders like me.

Should you invest £1,000 in Primary Health Properties right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Primary Health Properties made the list?

See the 6 stocks

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.

Primary Healthcare Properties

Primary invests in and rents out healthcare properties such as GP’s surgeries. Renting out healthcare provisions to the NHS is extremely smart, if you ask me. This is due to the ageing and rapidly growing population in the UK. Demand for healthcare has never been higher.

In terms of returns, a dividend yield of 6.7% is significantly above the FTSE 100 average of 3.8%.

Continued economic volatility, such as high interest rates, could hurt payouts and growth. The firm has a fair bit of debt to contend with which is costlier to pay down in times of higher rates, like now. Plus, the property market has struggled recently, so acquiring new properties for growth is a tricky proposition right now.

Warehouse REIT

Demand for warehouse and industrial properties has risen in recent years. This is mainly linked to the e-commerce boom and the changing habits of shoppers from brick-and-mortar retail, to online. If this trend continues, as stats show it could, then Warehouse could see returns and performance boosted.

At present, Warehouse REIT offers me a yield of 7.3%, which is very attractive!

Warehouse isn’t the only game in town. With lots of competition and low barriers of entry into the sector, competitors could undercut or financially and operationally outmanoeuvre the business. This could hurt profits, which underpin returns.

Regional REIT

Regional REIT focuses on office space and commercial properties outside the M25 motorway. This diversification is a plus point for me. For example, demand for office space is not the same as prior to the pandemic but demand for industrial space has soared.

Regional’s dividend yield is skewed compared to the two UK shares I’ve noted earlier. A yield of 17% looks inflated as the share price has struggled. This is primarily linked to the macroeconomic volatility of late which has hurt the property market. However, the dividend itself looks well covered by earnings, based on its balance sheet. I’d expect the shares to head upwards once volatility subsides and the yield even out.

Looking at risks, the office building arm of Regional’s assets may come under pressure. The pandemic sped up the home working boom, and now it seems most office jobs can be done remotely or hybrid. In turn, this could reduce the demand for office space, and hurt Regional’s performance and returns.

Overall, I plan on holding on to these three stocks for the long-term – which I’d define as a five- to 10-year period – and expect to receive consistent returns.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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.

Sumayya Mansoor has positions in Primary Health Properties Plc, Regional REIT, and Warehouse REIT Plc. The Motley Fool UK has recommended Primary Health Properties Plc and Warehouse REIT 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.

Our best passive income stock ideas

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

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

2 stocks to consider buying in July for the long-term travel boom

There are numerous ways to play the long-term growth in travel demand. Our writer highlights two stocks to consider for…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Warren Buffett’s 4 goals contain lessons for all investors! Here they are

Billionaire investor Warren Buffett once set out his four ongoing goals. Our writer reckons they are instructive for investors at…

Read more »

Portrait Of Senior Couple Climbing Hill On Hike Through Countryside In Lake District UK Together
Investing Articles

Rome wasn’t built in a day, and neither is £51k a year in passive income!

Our writer highlights a FTSE 100 stock that he thinks could beat the market long term and help target a…

Read more »

Happy woman commuting on a train and checking her mobile phone while using headphones
Investing Articles

This FTSE 100 outperformer keeps going from strength to strength

3i shares might be up 670% over the last 10 years, but Stephen Wright thinks there’s more to come from…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

Scottish Mortgage is a passive income superstar! Who knew?

Harvey Jones gets the surprise of his investment life when he discovers just how much passive income this top FTSE…

Read more »

Night Takeoff Of The American Space Shuttle
Investing Articles

This SpaceX-linked AIM growth stock is up 100% this year! Time to buy?

This UK growth stock has doubled in 2024 thanks in part to a lucrative US deal. With strong margins and…

Read more »

Rolls-Royce's Pearl 10X engine series
Investing Articles

The Rolls-Royce share price hit yet another record high last week! Still time to buy?

The Rolls-Royce share price has soared 2,287% in under five years and in recent days hit a new all-time high.…

Read more »

Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.
Investing Articles

£10,000 invested in Palantir stock 2 years ago is now worth…

I’m under no illusion that some long-term investors in Palantir stock will be considering an early retirement. The stock has…

Read more »