These top FTSE 100 and FTSE 250 shares each offer big dividend yields for 2023. Here’s why I’d buy them today to hold for at least the next 10 years if I had cash to spare.
Assura
Forward dividend yield: 7.3%
I’m expecting Assura to deliver big dividends even as the domestic economy struggles.
As the owner and operator of 600 primary healthcare facilities, the rents it receives are backed by the National Health Service. So unlike many property stocks, it doesn’t have to worry about rent defaults.
On top of this, as a real estate investment trust (or REIT), Assura has to pay at least nine-tenths of its rental profits out in the form of dividends.
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The FTSE 250 company has a terrific opportunity to grow profits as Britain’s elderly population booms and healthcare demand consequently rises. It’s a top buy in my book despite the risks associated with its acquisition-based growth strategy.
Glencore
Forward dividend yield: 8.7%
The near-term outlook for commodities companies like Glencore is fraught with uncertainty. As interest rates rise and the global economy cools, demand for metals and energy products could remain very weak.
But thanks to a strong balance sheet I’m expecting this FTSE 100 miner to still pay big dividends in 2023. Net-debt-to-EBITDA clocked in at a modest 0.2 as of June. What’s more, a bright longer-term demand picture should Glencore the confidence to keep paying above-average dividends.
I’m expecting the industrial metals it produces and trades like copper, nickel and iron ore to all rise strongly as the green economy takes off and urbanisation in developing regions continues.
Bluefield Solar Income Fund
Forward dividend yield: 7.3%
Companies that are involved in power generation can be great lifeboats for investors. Electricity demand remains broadly stable even during economically challenged times like now. This gives them the confidence and the means to pay large dividends year after year.
Bluefield Solar Income Fund is one FTSE 250 share on my radar. I like this particular company as it also gives me exposure to the rapidly growing world of green energy. The firm owns more than 120 solar assets, almost all of which are located in England.
I’d buy the fund even though unfavourable weather is a constant threat that can hinder power generation.
Legal & General Group
Forward dividend yield: 8.8%
I already own Legal & General shares. And a recent surge in the firm’s dividend yield is making me consider increasing my stake.
Demand for its retirement, insurance and investment products could come under pressure if the economy remains subdued. But the FTSE 100 company’s excellent cash generation means it should still pay the large dividends brokers currently expect in 2023. Its Solvency II capital ratio rose to 230% as of June.
Like healthcare property giant Assura, I’m expecting Legal & General’s earnings to rise strongly as the older population expands. Sales volumes could surge as more and more people plan for their retirements. It also has an opportunity to grow in large markets like North America.
