I don’t have unlimited reserves of cash to invest in dividend shares. But here are a handful I’d like to buy for my portfolio. I believe they could provide exceptional returns for years to come.
Gr1t Real Estate Income Group
Property stock Gr1t Real Estate Income boasts truly exceptional dividend yields. They sit at 10.6% and 12.3% for the next two fiscal years (to June 2023 and 2024 respectively).
This UK share owns and operates offices, shops, factories, medical facilities, and data centres. What sets it apart from most other real estate stocks is that it invests in major African economies. These include Morocco, Kenya, and Ghana.
Robust population and GDP growth in these countries could generate exceptional returns for Gr1t investors. However, a low uptake of Covid-19 vaccines in Africa could jeopardise this projected expansion. Economic conditions on the continent were hit particularly hard by the pandemic.
PageGroup
As the global economy expands so will demand for workers. This bodes well for recruitment business PageGroup.
This UK stock boasts offices across Europe, the Americas, Africa, Asia Pacific, and the Middle East. Such a wide wingspan provides exposure to developing markets and fast-growing emerging economies alike. It also provides the business with extra strength through diversification.
I’d buy PageGroup even though it has to operate in a highly competitive marketplace. Its dividend yields sit at a healthy 4.8% and 4.1% for 2022 and 2023 respectively.
Vodafone Group
I think Vodafone Group is one of the most attractive dividend stocks on the FTSE 100. Yields here sit at 9% and 8.9% for the next two years (to March 2023 and 2024 respectively).
The telecoms firm has an excellent record of paying above-average dividends. This is thanks to the huge amount of cash its operations produce. And its balance sheet has been bolstered this year by the partial sale of its Vantage Towers business.
This, along with the largely recession-resistant nature of its operations, reinforces dividend forecasts for the medium term. Though high costs can sap profits, I’d buy Vodafone to capitalise on rising data and broadband demand across the globe.
Strix Group
Strix Group manufactures water temperature management and filtration products. But it is best known for making kettle safety controls. This is what I believe makes it such a great defensive stock to own.
The essential nature of these components in turn provides the business with excellent earnings visibility. This gives it the confidence to pay decent dividends each year. I also like Strix because it commands a huge market share in this specialist market.
Profits could suffer if the Covid-19 crisis hits its Chinese manufacturing operations. But I still believe the potential benefits of owning this AIM share outweigh this risk. Its dividend yields sit at 7.6% for 2022 and 7.8% for next year.
