2 dividend stocks yielding above 7% that aren’t banks or miners

Hand of a mature man opening a safety deposit box.

Over the past year, some of the most attractive dividend stocks have been from the banking and commodity space. For example, the yield on NatWest Group went from 3.6% at the start of 2023 to 6.54% at the moment. For those who already have enough exposure to these sectors, here are two ideas I like from other parts of the market.

An understated food company

The first company is Bakkavor Group (LSE:BAKK). It sits in the FTSE 250, with the share price flat over the past year. Yet with a dividend yield of 7.17%, it’s certainly one to have on the radar.

The business refers to itself as the “global leader in the fresh prepared food industry”. It focuses on three main markets for the food, namely the US, UK and China.

In the half-year results, revenue jumped by 7.4% on the same period last year. Operating profit was up 12.7%, and this filtered all the way down to the bottom line. Thanks to this, the dividend per share was increased by 5%. Strong financials like this help to give investors confidence that the dividend is sustainable and could continue to grow over the next year.

One risk to note is the impact of China on the business. The Chinese economy is going through a flat spot at the moment. Concerns about the health of the large property developers and how much government aid could be provided is a worry.

Yet with the Bakkavor financial forecast for H2 being upgraded, I feel this is a strong name to consider adding to an income portfolio.

Powering up the future

Next up is the Bluefield Solar Income Fund (LSE:BSIF). The business is focused on buying and managing a diversified portfolio of low-carbon assets in the UK. These are mainly sites with large amounts of solar panels.

The fund is appealing for income investors with a current yield of 7.09%. The 17% fall in the share price over the past year has helped to push this higher.

The net asset value (NAV) of the sites hasn’t materially fallen. So the drop in the share price puts it at a 12% discount to the NAV. In theory, in years to come this should correct itself, with the stock moving back higher.

I think one of the reasons for the fall this summer is related to the increase in the revolving credit facility that was announced. Although the business doesn’t have to make use of the new £110m of credit, I think it needs to be careful about debt levels going forward. Currently the leverage level is 41% of the gross asset value. I don’t think it would be wise to increase this much more.

As well as the strong income payments and NAV discount, another tick is that the company is very ESG-friendly. This is a business that’s saving 120,000 tonnes of CO2 emissions each year! Putting it all together, I believe this is another strong pick.

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Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.