I’m searching for the best UK dividend shares to buy for long-term passive income. And the following high-yield FTSE 250 shares have attracted my attention. Their forward dividend yields comfortably beat the broader index’s 3.8% average.
Dividends, of course, cannot be guaranteed. But here’s why I believe these passive income heroes remain brilliant potential buys if I had the cash right now.
1. Supermarket Income REIT
In exchange for certain tax perks, real estate investment trusts like Supermarket Income REIT (LSE:SUPR) must pay a minimum of 90% of annual rental profits out in the form of dividends. This can make them ideal choices for income investors.
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I like this particular investment trust owing to its focus on the defensive supermarket sector. This means it can usually pay large dividends even during tough economic times.
I’m also a fan because it prioritises investment in larger ‘omnichannel’ stores. Such assets are likely to benefit from growth in grocery e-commerce due to the important role they play in home delivery and click-and-collect.
Supermarket Income REIT carries an 8.2% forward dividend yield. I’d buy its shares even though asset values could continue to decline sharply depending on future interest rate decisions.
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.
2. TBC Bank Group
Banking stocks like TBC Bank Group (LSE:TBCG) are more sensitive to broader economic conditions. During downturns loan growth can slow and impairments rise. Yet the excellent long-term growth potential of this Georgia-focused bank still makes it a hot buy in my opinion.
Demand for financial services in its emerging market is booming as the Eurasian nation’s economy rapidly grows and personal income levels rise. Pre-tax profits soared 17.1% quarter on quarter during the three months to June as it added another 1.3m customers, taking the total to 16.1m.
TBC Bank also has operations in Uzbekistan which helps to reduce risk. The business is aiming to achieve loan growth of 80% in this other territory between now and 2025.
The banking giant has soared 56% in value over the past year. Yet it still offers a market-beating 6.4% dividend yield for 2023.
3. Target Healthcare REIT
Care home operator Target Healthcare REIT (LSE:THRL) is an investment trust I already own in my portfolio. And I’m considering adding more to my portfolio given its share price now stands at a colossal 7.7%.
Healthcare businesses like this have a tremendous opportunity to capitalise on the UKs booming elderly population. The government says one in seven of us will be aged 75 or above by 2040. This suggests that the need for properties like GP surgeries and retirement homes will rocket.
A weak development pipeline suggests that supply will fail to keep up with demand, however, at least over the medium term. Companies like Target Healthcare should therefore be able to continue increasing rents at a strong pace.
I think this investment trust is a top potential buy despite the threat posed by staff shortages in the nursing industry.
