10%+ dividend yields! 3 top dividend shares to consider in 2025!
Looking for the best dividend shares to buy? Here are three whose sky-high dividend yields make them worth serious consideration right now.
Phoenix Group
At 11.1%, financial services provider Phoenix Group (LSE:PHNX) currently offers the FTSE 100‘s largest dividend yield for 2025.
This is a share that — if not for my considerable stakes in industry peers Legal & General and Aviva — I’d consider adding to my own portfolio for passive income.
Like those other Footsie shares, it has substantial financial resources it can use to keep paying large and growing dividends. As of June, its shareholder capital ratio was 168%, towards the upper end of its 140%-180% target range.
A strong cash base gives Phoenix the scope to leverage its considerable structural opportunities too. Like those other Footsie shares I’ve described, providers of retirement and wealth products could enjoy sparkling sales growth as the global population ages.
The marketplace is incredibly competitive. But as Phoenix ramps up investment in heavyweight brands like Standard Life, the company still looks in good shape to grow earnings.
NextEnergy Solar Fund
At 13.6%, renewable energy stock NextEnergy Solar Fund (LSE:NESF) has the second-biggest forward dividend yield on the FTSE 250 right now.
Electricity producers like this can offer a healthy level of security to dividend chasers. As energy demand remains unchanged over time, NextEnergy has the earnings stability and the confidence to pay large dividends at all points of the economic cycle.
Indeed, the company has raised annual payouts each year since it listed on the London Stock Exchange in 2014. Its dividend yield during that time has consistently ranged between 5% and 7.5%, too, comfortably beating the FTSE 100 average of 3%-4%.
That’s not to say renewable energy stocks are without risk. Profits at this particular business suffer when solar radiation is low and its ability to generate power decreases.
However, NextEnergy’s wide geographic footprint helps to lessen this threat on group profits. It directly owns more than 100 solar projects spanning the whole of Europe.
Henderson Far East Income
Operated by Janus Henderson, the Henderson Far East Income (LSE:HFEL) investment trust aims to generate both growth and income by investing in far-flung Asian companies.
Major holdings here include Taiwan Semiconductor Manufacturing Company, China Construction Bank, and Macquarie Group. In total, it holds shares in more than 70 companies across regional hubs including China, Hong Kong, Singapore, and South Korea.
This gives it excellent growth potential as Asia Pacific’s middle class rapidly grows, though this is not the only advantage of its diversified approach. Spreading investors’ capital across dozens of businesses helps provide earnings, and thus dividends, with added protection.
Indeed, shareholder dividends have continued growing despite recent problems in China’s economy. Though this remains a threat, City analysts don’t expect this to disrupt the trust’s dividend growth record.
Therefore the dividend yield here for 2025 is a stunning 10.7%.
The post 10%+ dividend yields! 3 top dividend shares to consider in 2025! appeared first on The Motley Fool UK.
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More reading
- How much do I need to invest in dividend stocks to earn a £1,000 monthly passive income?
- £10,000 of Phoenix Group shares could net an £818 monthly passive income!
- 9%+ yields! 3 FTSE 100 shares to consider for 2025
- After falling 32% this stunning FTSE income stock yields 10.2% and I can’t get enough of it
- A 10.3% yield but down 12%! Time for me to buy more of this hidden FTSE 100 gem?
Royston Wild has positions in Aviva Plc and Legal & General Group Plc. 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.
