In this article, we discuss the 5 high-yield UK dividend stocks to buy now. If you want to read about some more high-yield UK dividend stocks, see 10 High-Yield UK Dividend Stocks to Buy Now.
5. Phoenix Group Holdings plc (LSE:PHNX.L)
Dividend Yield as of May 11: 8.27%
Phoenix Group Holdings plc (LSE:PHNX.L) provides savings and retirement services. Some of the products that the company markets include unit-linked funds, profit funds, annuities, workplace pensions, and individual savings and retirement solutions. It employs more than 8,000 people and has over two centuries of experience in the finance sector. The four segments through which it operates include K Heritage, UK Open, Europe, and Management Services. The company serves individuals as well as corporations.
On March 31, JPMorgan analyst Farooq Hanif upgraded Phoenix Group Holdings plc (LSE:PHNX.L) stock to Overweight from Neutral with a price target of GBP 800, noting that pricing for the insurance sector remained strong and was likely to “feed into further margin improvement in the next 12-18 months”.
4. M&G plc (LSE:MNG.L)
Dividend Yield as of May 11: 8.85%
M&G plc (LSE:MNG.L) is a diversified financial services firm. On March 8, the firm posted earnings for the full fiscal year 2021, reporting earnings per share of £3.20 and a revenue of £17.77 million, up more than 16.8% compared to the revenue in the previous fiscal year. John Foley, the CEO of the firm, said during the earnings call that the firm had undergone a reorganization in management during the past few months and the market-beating earnings were a testament to the success of this initiative.
On March 31, JPMorgan analyst Farooq Hanif upgraded M&G plc (LSE:MNG.L) stock to Neutral from Underweight and raised the price target to GBP 250 from GBP 215, noting that there reasons to be incrementally positive on the European insurance sector.
3. Imperial Brands PLC (LSE:IMB.L)
Dividend Yield as of May 11: 8.34%
Imperial Brands PLC (LSE:IMB.L) makes and sells tobacco and related products. The company has an impressive dividend history stretching back more than 10 years. On February 17, it declared a dividend of $0.642 per share. The stock has been hit by the war in Ukraine as Russia is one of the largest tobacco markets in Europe. Inflationary tailwinds have also had their impact on margins. Despite these setbacks, the company is well-positioned to ride out the storm as the products it markets are cheaper than the competition.
In early February, Morgan Stanley analyst Rashad Kawan upgraded Imperial Brands PLC (LSE:IMB.L) stock to Equal Weight from Underweight and raised the price target to GBP 1,955 from GBP 1,680, citing valuation and buyback potential as some of the reasons behind the ratings update.
2. Persimmon Plc (LSE:PSN.L)
Dividend Yield as of May 11: 11.44%
Persimmon Plc (LSE:PSN.L) operates as a house builder. It has three distinct divisions under which it carries on day-to-day operations. These include family housing, executive housing, and social housing plans. These are all marketed under different brand names like Persimmon Homes, Charles Church, and Westbury Partnerships. The firm employs more than 5,000 people and has been in the house building business since the early 1970s. It has a market cap of close to $8 billion.
On April 28, JPMorgan analyst Rajesh Patki kept an Overweight rating on Persimmon Plc (LSE:PSN.L) stock and raised the price target to GBP 3,110 from GBP 2,830. Other investment advisors like Berenberg and Morgan Stanley are also bullish on the stock.
1. Rio Tinto Group (NYSE:RIO)
Dividend Yield as of May 11: 12.12%
Rio Tinto Group (NYSE:RIO) is a diversified metals and mining firm. Jakob Stausholm, the CEO of the firm, said at the general meeting of the company on May 5 that Rio Tinto was planning to increase growth capital spending to around $4 billion per year by 2023. The announcement comes as copper and iron futures fall to record lows. Per Stausholm, the growth capital spending will focus on materials required for energy transition. The company has reignited interest in the Jadar lithium mine in Serbia as part of this initiative.
On April 21, investment advisory JPMorgan maintained a Neutral rating on Rio Tinto Group (NYSE:RIO) stock with a price target of GBP 5,730. Analyst Lyndon Fagan issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Rio Tinto Group (NYSE:RIO), with 14 million shares worth more than $1.1 billion.
You can also take a peek at 10 Russell 2000 Basic Materials Dividend Stocks to Buy and 10 Utilities Stocks with Over 3% Dividend Yield.
