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I have been buying the best high class stocks to increase my passive income. Here are the two whose dividends beat UK stocks below the sub-4 per cent average. I think they are still very good buys.
Box smart
Rising inflation is taking its toll on the UK economy. As economists raise their inflation forecasts, things are looking bleaker and bleaker.
I think it is a good idea to invest in property shares to protect myself from this risk. Real estate businesses can raise rents to compensate for the ever-increasing rate of inflation in their cost base. That is why I am thinking of buying more shares Tritax Big Box REIT (LSE: BBOX)
I bought TriTax to grow the growing e-commerce movement in the 2020s and beyond. The business operates a portfolio of warehouse and distribution assets across Britain. And the properties are allowed to international blue chip companies Amazon, Tesco, Ocado And Mark and Spencer. This gives me more confidence that rental income will be stable in good times and bad.
In fact, Internet giant Amazon is the company’s largest customer in terms of contract rentals. By 2021, it accounted for 16.4 percent of total rental income.
on top To buy a REIT
Construction of so-called big-box warehousing and distribution assets continues to lag demand by a significant margin. E-commerce growth is expected to slow even from the level of Covid-19. Therefore, the market in which Tritax operates is predicted to grow strongly.
I also like REITs like this because they are required to pay 90% of their annual profits to shareholders in dividends. That’s why the business has a 4% dividend yield for 2022 and a 4.2% dividend for next year.
Of course, there are dividends with big brands today. And if Tritax cannot identify suitable acquisitions, they may face some development problems.
But TriTax’s strong, inflation-resistant operations give me great peace of mind as an investor. All things considered, I think it justifies a great buy for long-term passive income.
6.4% profit rate!
DS Smith (LSE: SMS ) is more likely to be affected by the stronger economic landscape than tritax. This business produces packaging products that are widely used by e-retailers such as Amazon. So when consumer spending power weakens, business can suffer.
However, I believe DS Smith’s cheap estimate reflects this risk. of FTSE 100 In the year The company trades on a P/E ratio of 7.7 times in 2022 following severe stock price weakness.
In fact, I am thinking of buying more shares to increase my income. Recent price weakness puts the dividend for 2022 and 2023 at a high of 6.1% and 6.4%, respectively.
I believe DS Smith has a very bright long-term future. As the digital revolution continues, e-commerce has plenty of room for growth. And I like the company’s commitment to growing its global footprint and improving its local credentials. Last year, it announced plans to double R&D spending amid growing demand for more sustainable packaging.