I’m trying to find high-yield dividend shares to purchase proper now. I’m additionally trying to diversify my holdings by shopping for a big-paying exchange-traded fund (ETF).

Listed below are three such investments on my record as we speak. As you’ll be able to see, the dividend yields on these London Inventory Alternate-listed devices sail above a ahead common of three.6% for FTSE 100 shares.

Dividends are by no means assured. But when forecasts are correct, a £15k funding unfold equally throughout these shares and this ETF would give me a £1,080 passive revenue in 2025.

I’m assured, too, that dividends will march increased over the time. Right here’s why I’d purchase them if I had the money available to speculate as we speak.

Greencoat UK Wind

Power producers like Greencoat UK Wind are sometimes thought-about among the most secure dividend shares to purchase.

Retaining generators in good working order might be an costly, earnings-damaging enterprise. However firms like this additionally get pleasure from glorious income visibility because of their ultra-defensive operations. This could make them extra steady dividend payers than many different UK shares.

Electrical energy demand stays steady no matter financial, political, or social disaster comes alongside. And so Greencoat UK Wind, which produces energy from 49 websites and sells it onto vitality suppliers, enjoys a gentle stream of revenue it will probably pay to its shareholders.

Whereas dividends are by no means assured, Greencoat’s vow to pay “an attractive and sustainable dividend that increases in line with RPI” has been in impact since its IPO a decade in the past.

In actual fact, dividends in 2023 rose nearly 30% yr on yr, hovering previous retail price inflation (RPI) of 13.4%. Greencoat is ready to maintain this file up as the vast majority of its contracts are linked to both RPI or client price inflation (CPI).

Given the intense outlook for renewable vitality demand, I feel Greencoat UK may very well be a high dividend payer for years.

Invesco US Excessive Yield Fallen Angels ETF

The Invesco US Excessive Yield Fallen Angels ETF supplies a manner for buyers to revenue from the bond market. Extra particularly, it goals to measure “the performance of ‘Fallen Angels,’ bonds that were previously rated investment grade and were subsequently downgraded to high yield bonds”.

Round 85% of credit score scores on its company bonds are rated BB, with the rest at B.

Whereas scores go a lot decrease, these sub-investment-grade securities imply that buyers are nonetheless uncovered to the next degree of credit score danger than different bond-holding funds. A downgraded score is an indication of issues with the bond issuer’s underlying monetary well being.

Nevertheless, with this higher danger comes the potential for higher reward. And on this case the dividend yield is a whisker away from 7%.

What’s extra, the fund has an ongoing annual cost of 0.45%, which supplies strong worth. It’s one other manner I’d think about concentrating on an enormous passive revenue subsequent yr.