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The London stock market includes a variety of dividend stocks-. Recently, the appeal of these dividend shares has grown as dividend yields on many top stocks have improved following a decline in UK share prices. Two notable examples are Primary Health Properties and Phoenix Group Holdings.
Primary Health Properties (LSE:PHP), a real estate investment trust (REIT), currently offers a dividend yield of 7.5% with a predicted dividend of 6.9p per share. As a REIT, it is required to distribute at least 90% of its annual rental profits to shareholders. The company's focus on primary healthcare facilities, such as doctor surgeries and diagnostic centres, ensures a stable rental income due to strong demand and government-backed leases. This stability contributes to its reliable dividend payments and a solid track record of increasing dividends over time.
However, it is important to note that potential changes in NHS policy could impact future earnings and dividend payments.
Phoenix Group Holdings (LSE:PHNX), operating in the financial sector, offers a dividend yield of 10.2% with a predicted dividend of 53.9p per share. The company's financial performance is linked to economic conditions and the performance of its investment portfolio. Despite this sensitivity, Phoenix Group has demonstrated strong dividend stability, supported by a solid Solvency II capital ratio of 176% at the start of 2024. The company's ability to generate significant cash flows from long-term customer premiums and asset management positions it well for ongoing dividend payments.
Both companies provide high dividend yields, reflecting their solid positions within their respective sectors and their capacity to deliver consistent returns to shareholders.
