Looking for the best high-yield dividend shares to buy for a long-term passive income? Here are two from the FTSE 250 I think deserve close attention:
| Dividend share | Predicted dividend growth this year | Dividend yield |
|---|---|---|
| SDCL Energy Efficiency Income Trust (LSE:SEIT) | 4% | 13.9% |
| The Renewables Infrastructure Group (LSE:TRIG) | 1% | 10.4% |
As you can see, dividends for these FTSE 250 shares are tipped to keep growing, resulting in high yields that smash the 3.4% FTSE 250 forward average.
If City forecasts are correct, £10,000 invested in both of these dividend shares would create a £2,430 passive income this year alone. Here’s why I’m tipping them to deliver a large and growing dividend stream today and beyond.
Should you invest £1,000 in Sdcl Energy Efficiency Income Trust Plc right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Sdcl Energy Efficiency Income Trust Plc made the list?
SDCL Energy Efficiency Income Trust
At almost 14%, the SDCL Energy Efficiency Income Trust has the highest dividend yield on the FTSE 250 today.
But unlike many ultra-high-yielding shares, this trust is no flash in the pan. Annual dividends have grown steadily since it listed on the London Stock Exchange in 2018.
Severe share price weakness has driven the trust’s dividend yield through the roof. It also means that, at 48.5p per share, the trust trades at a whopping 46% discount to its net asset value (NAV) per share.
I think this represents an attractive buying opportunity, even though threats remain on the horizon. With clean energy assets in the US, it’s vulnerable to changing environmental policy under President Trump. It may also face further interest rate pressures if new trade tariffs spike inflation.
However, the company also has significant growth opportunities regardless of what happens in the US, with operations in both Europe and Asia as well. It’s also important to remember that the green energy transition is a long-term theme, so any turbulence in North America may be temporary.
The Renewables Infrastructure Group
The Renewables Infrastructure Group (or TRIG for short) is another potentially lucrative way for income chasers to profit from the green economy. It’s a share I actually own in my own portfolio.
This company has a great dividend track record dating back to when it listed in London in 2013. Dividends have risen each year bar one (in financial 2021, when the annual payout was frozen).
As you can see from the chart, TRIG’s shares have slumped due to the pressure of higher-than-usual interest rates and the risk of higher rates persisting. Yet this means that the value on offer is similarly substantial.
The forward dividend yield is above 10%. And with its share price at 73.1p, the company trades at a 37.9% discount to its NAV per share.
Generating power from green sources can be problematic during periods of unfavourable weather. But with a geographic footprint spanning Europe, and operations spanning wind power, solar energy, and battery storage, TRIG’s deep diversification helps limit any potential damage at group level.
