I’m looking for the best dividend stocks to buy for my portfolio in February. I think these UK shares could provide me with a steady income now and for many years into the future. Each currently provides a dividend yield north of 4%.
Tritax Eurobox (4.5% dividend yield)
I’ve sought to grab a slice of the e-commerce boom by buying shares in Tritax Big Box REIT. This is a UK share that provides the warehouses and distribution hubs that allow companies to get their products to consumers. The only problem with Tritax Big Box is that it only operates in Britain, so it has very little geographical diversification.
Sure, the UK is Europe’s largest (and one of its fastest-growing) e-commerce markets. But I think investing in its continental cousin Tritax Eurobox (LSE: EBOX) could be a good idea to expand my portfolio’s territorial footprint. This particular dividend stock owns assets in Germany, France, Spain, Italy and a handful of other large European economies. This includes the fast-growing emerging market of Poland.
Tritax Eurobox has plenty of financial firepower to continue building its portfolio too, following fund raising in September and December of last year. Earlier this month, it completed an acquisition of another logistics property in Sweden. And it has a pipeline worth around €300m to continue executing its growth strategy.
Acquisitions can be dangerous as it can expose a firm to multiple risks, such as unexpected costs and disappointing demand. But Tritax Eurobox has a strong track record on this front and this provides me as a potential investor with decent peace of mind.
Springfield Properties (4.2% dividend yield)
I also think holding shares in housebuilders is a good idea as Britain’s home supply crunch drags on and property prices steadily rise. I’m considering bulking up my exposure to this sector by buying shares in Scottish housebuilder Springfield Properties (LSE: SPR). This company trades on a forward P/E ratio of 9.5 times predicted earnings. It also offers that chunky yield, both of which combine to offer supreme value, to my eyes.
Like all UK shares, Springfield doesn’t come without risk. A rapidly-slowing domestic economy could prove catastrophic for homes demand as confidence sinks and buyer affordability comes under pressure. The scheduled withdrawal of Help to Buy in March 2023 throws up another potential danger.
It’s my opinion though that demand for newbuild properties should continue to outstrip supply for many years ahead. Government policy hasn’t got to grips with the problems hampering construction rates. At the same time, interest rates are likely to remain below historical norms and competition in the mortgage market should help first-time buyers get onto the property ladder too.
Besides, as estate agency Savills recently noted: “Schemes including Deposit Unlock, First Homes and an expanded Shared Ownership programme may fill a large proportion of the gap left by Help to Buy.”
So I think construction stocks like Springfield Properties remain great UK shares to own.
