Are you looking to boost your income in 2025? If so, you might want to consider investing in some UK shares that are projected to deliver impressive dividends next year. Dividends are never guaranteed, but these shares have the potential to outperform the market and provide you with a substantial second income.
Here are some FTSE 100 and FTSE 250 shares that are expected to offer market-smashing dividends in 2025:
- Legal & General Group (LSE:LGEN) – 9.9% dividend yield
- Greencoat Renewables (LSE:GRP) – 7.9% dividend yield
- ITV (LSE:ITV) – 6.9% dividend yield
- Average yield – 8.2%
These dividend yields surpass the average of 3.6% for Footsie shares, indicating the potential for significant returns. A lump sum investment spread equally across these stocks could generate a passive income of £1,640 next year from a £20,000 investment.
Legal & General, with a near 10% dividend yield, is expected to be one of the most generous income stocks in the FTSE 100. While there is a risk that dividends could fall below estimates if profits disappoint, Legal & General’s strong cash generation and solid financial health position it well to meet City expectations. With a Solvency II capital ratio of 223%, Legal & General is in a robust position compared to other high-yielding financial services stocks.
Greencoat Renewables, a renewable energy stock, offers stable demand for its products and is highly cash generative. With assets across Europe, Greencoat Renewables is less susceptible to regional weather impacts, reducing the risk associated with poor solar radiation or wind conditions that could affect earnings and dividends.
ITV, despite facing challenges due to slumping earnings from advertising spending, is poised for a turnaround with expected profit growth and strong dividend projections through 2026. The company’s diverse streams of revenue, including advertising, ITVX streaming platform, and ITV Studios, along with a strong balance sheet and low debt-to-EBITDA ratio, support the reliability of its dividend estimates.
Overall, these UK shares offer an exciting opportunity for investors looking to grow their income in 2025 and beyond. Consider the potential of these market-smashing dividends when planning your investment strategy for the upcoming year. High yields, sturdy financial health, and steady growth prospects make these stocks worth considering for a diversified and income-focused portfolio.
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