I’m looking for the most effective dividend shares for buyers searching for a big second earnings subsequent yr. Listed below are two whose excessive dividend yields pop off the web page proper now:

To offer their yields context, at present’s common yield on FTSE 100 shares is method again at 3.6%.

Whereas dividends are by no means assured, these passive earnings shares seem in fine condition to fulfill dealer forecasts. Right here’s why I feel dividend buyers ought to think about them at present.

Wholesome dividends

Main Well being Properties shares have fallen sharply in current weeks, sending its dividend yield for 2025 by means of 7%.

Actual property funding trusts (REITs) like this are designed to offer earnings to their shareholders. They’re obliged to pay at the very least 90% of earnings from their rental operations out within the type of dividends, in trade for sure tax perks.

That aforementioned yield enhance now makes Main Well being probably certainly one of London’s best-paying REITs for subsequent yr.

dividend cowl, the anticipated payout for subsequent yr doesn’t look all that safe. In reality, subsequent yr’s assumed dividend per share is increased than anticipated earnings (7.02p).

However in actuality this isn’t a trigger for alarm to me. Certainly, earnings-topping dividends have been a daily characteristic of Main Well being Properties for a few years.

It is because REITs like this sometimes base dividends on money circulate metrics like funds from operations (FFO) relatively than accounting earnings, which may be impacted by non-cash fees (equivalent to property depreciation).

Indicators of sticky inflation have impacted Main Well being Properties’ share price of late. If this continues and rates of interest stay increased, property shares like this might proceed falling.

However on stability, I feel the potential advantages of proudly owning the corporate offset this danger. Over the long run, I feel earnings may rise strongly as Britain’s ageing inhabitants drives demand for healthcare providers.

Strong forecasts

An unsure financial outlook means investing in WPP shares is riskier than regular at present. Throughout robust instances, many firms are inclined to considerably cut back ad-related spending.

This will likely influence the promoting/advertising and marketing company’s earnings in 2025. However I’m assured that it gained’t have an effect on its capability to fulfill present dividend forecasts.

For one, subsequent yr’s predicted payout is roofed 2.2 instances by anticipated earnings of 87.81p per share. Any studying above 2 instances offers a large margin for error, it’s typically stated.

WPP additionally has scope on the stability sheet to fulfill payout projections if earnings disappoint. The proposed sale of its majority stake in FGS World will pull its net-debt-to-EBITDA ratio to 1.6 instances. That is effectively inside the corporate’s goal of 1.5-1.75 instances.

A current buying and selling enchancment encourages me to be cautiously upbeat for WPP subsequent yr. It returned to progress within the third quarter, and like-for-like-sales rose 4.1% yr on yr.

With a strong dividend yield and low price-to-earnings (P/E) ratio of 9.7 instances, I feel it’s a lovely Footsie inventory to think about for 2025.