How I’d find the best UK dividend shares to buy now for a passive income

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Peter Stephens | Saturday, 16th January, 2021 “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. How I’d find the best UK dividend shares to buy now for a passive income Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img The best UK dividend shares to buy now are likely to offer more than just a large passive income. They are also likely to have dividends that are amply covered by profit. That means they can maintain their shareholder payouts if the economic outlook deteriorates.Furthermore, their dividend growth potential could make a significant impact on their appeal. Companies that can deliver a rise in dividends may appeal to a broader range of investors. And they could deliver impressive capital growth.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A large and robust passive incomeAt the moment, a number of UK dividend shares have high yields. This may tempt passive income investors to buy them based solely on their capacity to provide a generous income stream in the current year.However, a high yield is of little use if it is not reliable during a challenging period for the economy. As such, ensuring that dividends are covered more than once by net profit could be a sound move. It could enable an investor to select the highest-yielding, and most reliable, dividend shares from across the FTSE 350.Gauging the resilience of a passive income from any company can be achieved by dividing its net profit by dividend payouts. A figure of more than one means its earnings have covered dividends. However, given the prospects for the world economy, it may be a good idea to seek companies that have a higher level of dividend cover. They may be less likely to reduce their payouts should their profitability fall in the coming months.Dividend growth opportunitiesCompanies that can offer rising dividends could produce capital growth, as well as an improving level of passive income. The loose monetary policy being followed by the Bank of England means dividend growth could become increasingly important to investors. This may add to inflation over the coming years, which could make companies that are able to raise dividends more popular among investors seeking to maintain their spending power.Of course, identifying businesses capable of producing high dividend growth can be challenging. Their shareholder payouts are dependent on profit growth, which is difficult to predict at present. However, companies that are likely to benefit from industry-wide growth trends, or a recovery within their operating environments, could raise dividends relatively quickly. Similarly, stocks with modest dividend payout ratios may be able to afford growing shareholder payouts. That could be the case even if their profitability rises slowly.It is possible to obtain a large passive income today (and the potential for growth in the long run) by assessing the dividend growth prospects of a stock before purchase. Although subjective, this process may lead to a more attractive stocks portfolio. That that could provide a stronger income stream in the coming years. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Peter Stephenslast_img

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