Relating to dividend shares, among the most dependable corporations to deal with come from the infrastructure sector. But, for some shares on this space, it’s not simply the monitor file that may impress traders. Reasonably, the excessive yields are additionally noteworthy. Listed here are two to contemplate.

Wholesome dividend cowl

The primary one is the Octopus Renewables Infrastructure Belief (LSE:ORIT). The belief invests in a variety of renewable vitality initiatives, together with wind and photo voltaic crops. It additionally has publicity to vitality storage techniques.

It makes cash through the infrastructure it invests in, reminiscent of by promoting the vitality to shoppers. This creates good money circulate, which then can be utilized to pay out dividends to traders.

Over the previous 12 months, the share price has fallen by 24%. A part of the explanation for that is “challenging macroeconomic conditions”, which the administration staff flagged within the half-year report. This consists of rates of interest staying increased for longer, inflicting new debt to be costlier to fund initiatives for Octopus.

Nonetheless, the dividend cowl is at a wholesome 1.33 occasions, which means that the present earnings per share simply cowl the dividend funds. Additional, there are thrilling new initiatives set to begin shortly, together with a brand new energy buy settlement with Sky UK beginning in April. These ought to assist to spice up income within the coming 12 months.

The dividend yield of 8.76% may be very engaging. Though the danger of rates of interest staying elevated for 2025 stays, it’s clear that the corporate has been in a position to cope with this in 2024.

Diversified infrastructure publicity

A second firm for traders to contemplate is HICL Infrastructure (LSE:HICL). The inventory offers traders with publicity to a diversified portfolio of important private and non-private infrastructure property. These embody hospitals, colleges, and transport networks.

It makes cash by having long-term contracts with authorities entities, native authorities or non-public operators. The revenue acquired from these contracts offers the money circulate to pay out to shareholders. To this finish, the present dividend yield is just under 7%.

It’s true that the share price is down 14% during the last 12 months. That is one issue that has pushed up the yield. The drop can partly be defined by a fall within the valuation of the property within the portfolio. Because the share price ought to carefully monitor the online asset worth of the portfolio, this is smart. This stays a short-term danger for traders this 12 months.

Traders would possibly discover this infrastructure inventory interesting not solely due to the excessive yield but additionally as a result of diversified portfolio. It has publicity to all kinds of initiatives, in addition to completely different shoppers. This could defend it in opposition to a black swan occasion in a single explicit space.

General, each revenue shares might be engaging for dividend traders to ponder together with going ahead.