Two dividend stocks I feel could be savvy buys for my holdings are ( ) and ( ). Here’s why I’d be willing to buy some shares when I next have some investable funds, despite credible challenges to the payouts. And it is always worth remembering that dividends are never guaranteed.
Healthcare properties Impact Healthcare is set up as a real estate investment trust (REIT), meaning it must return 90% of profits to shareholders. The firm specialises in care homes, and ties its tenants down to long-term, inflation linked contracts. At present, Impact owns and operates 138 care homes across the UK.
Its potential to grow earnings and returns is exciting for me as the UK population soars and will require care in the years to come. From a fundamental view, the shares offer a of 7.9%.
For context, the average is closer to 3.5%. Furthermore, the shares look good value for money on a forward price-to-earnings ratio of 8.
5. Moving to the bear case, issues in the commercial property sector have occurred due to higher interest rates. These have hurt net asset values (NAVs).
However, the bigger challenge Impact faces is potential staff shortages in the care sector. It’s all well and good growing its portfolio and owning many care homes, but they can’t operate without qualified staff. I’ll keep an eye on this, but I believe it won’t be a deal breaker when it comes to shareholder value in the longer term.
Cheers to that! Premium alcoholic drinks giant Diageo really doesn’t need mu.