Searching for the best high-yield passive income shares to buy for long-term dividends? Here are four of my favourites.
Cash machine
Small-cap miners aren’t often famed for their large dividends. But strong cash generation and zero debt means Central Asia Metals has long delivered market-beating cash rewards.
For 2025, its dividend yield is a whopping 11%.
Profit-sapping volatility on commodity markets can make mining stocks a risk. But that robust balance sheet means Central Asia — which owns copper and lead-zinc deposits in Kazakhstan and North Macedonia — still looks in good shape to deliver big rewards.
It had cash in the bank of $67.6m as of December. That was up from £56.3m six months earlier.
Top trust
Real estate investment trusts (REITs) like Assura are required to distribute 90% of rental profits out in dividends. And so the forward dividend yield here is a healthy 9%.
However, there are other reasons why this particular trust’s a reliable passive income share. It operates in the highly stable medical property sector, where rents are underpinned by government bodies. A large percentage of its rental contracts are also inflation linked, allowing it to offset the impact of rising costs on earnings.
Assura has a strong record of dividend growth, too, which I believe should continue as the UK’s ageing population drives healthcare demand.
That said, the company’s aim to boost earnings with acquisitions does come with risks. Acquisitions that don’t work out can be extremely costly.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
Super star
As one might assume from its grandiose title, the Global X SuperDividend ETF (LSE:SDIP) boasts one of the highest dividend yields on the London Stock Exchange. It currently clocks in at 11.5%.
High-yield stocks can carry hidden risks. Companies often offer generous dividends to attract investors, even when facing challenges like weak earnings or increasing debt. High shareholder payouts can be difficult to maintain, potentially leading to dividend cuts later on.
Investing in an exchange-traded fund (ETF) doesn’t eliminate this threat. But it can help to significantly reduce the risk by spreading cash across a variety of shares.
The GlobalX SuperDividend ETF invests in more than 100 companies, and what’s more, its holdings span multiple sectors and all four corners of the globe. Major holdings include telecoms provider HKBN, iron ore producer Vale, and asset manager M&G.
This level of diversification provides even more protection for investors seeking a large and reliable dividend income over time.
Power up
The Octopus Renewables Infrastructure Trust invests in green energy projects across Europe. These include (but are not limited to) onshore and offshore wind farms in Sweden, Germany, and the UK, along with solar power assets in France and Ireland.
Unlike with fossil fuels, the electricity generated from ‘clean’ sources can be highly variable depending on weather conditions. But Octopus, with its wide range of technologies and broad geographic wingspan, lessens (if not completely eliminates) this threat to group earnings.
Given the stable nature of energy demand, I think this trust is — on balance — a good option to consider for investors trying to target a large and dependable passive income.
Its dividend yield for 2025 is an enormous 9.5%.
The post 4 passive income shares with 9%+ dividend yields to consider today! appeared first on The Motley Fool UK.
Passive income stocks: our picks
Do you like the idea of dividend income?
The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…
Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.
What’s more, today we’re giving away one of these stock picks, absolutely free!
Get your free passive income stock pick
More reading
Down more than 20% in 2024, Fools think these 4 value stocks will recover (and then some) in 2025
Here’s how a stock market novice could start investing with under £1,000
£500 or £5,000? Here’s how much passive income a £20k ISA could earn each year!
How much should an investor put in a Stocks and Shares ISA to return £50 a day?
It’s down 45% — but I’m buying this FTSE gem
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended M&g Plc. 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.
