Two dividend shares firmly on my radar as I look to create a passive revenue stream are DCC (LSE: DCC), and ITV (LSE: ITV).

I’m hoping to have some spare money to take a position quickly, so I’ll be trying to snap up some shares in every. Right here’s why!

DCC

Gross sales, advertising, and assist providers conglomerate DCC has a various set of pursuits throughout the globe.

The shares have been on an honest run up to now 12-month interval, up 19%. At the moment final yr, they have been buying and selling for 4,720p, in comparison with present ranges of 5,660p.

From a bullish view, the agency’s diversification is a power, in my eyes. It’s because weak point in a single space may be offset by power in one other. For instance, it is among the largest bottled fuel suppliers out there. When the price of fuel was excessive, it did effectively. It’s additionally concerned closely in advertising actions for different companies.

There are dangers for DCC too. A first-rate instance is the volatility with fuel costs. When wholesale costs fell, DCC noticed earnings drop. One other space the place DCC may very well be damage is its advertising operations. Advertising and marketing budgets are normally minimize throughout instances of financial volatility, like now. I’ll control these pitfalls.

Nonetheless, as a dividend inventory, DCC appears to be like tempting. A dividend yield of three.5% at current, and the truth that the agency has elevated dividends by a mean of 10% for the previous 10 years, is attractive. Nonetheless, I do perceive that dividends are by no means assured. Plus, I’m conscious that previous efficiency is just not a assure of the longer term.

Lastly, the shares look first rate worth for cash to me on a price-to-earnings ratio of simply 12.

ITV

Regardless of being one of many largest industrial broadcasters within the UK with a storied observe report, ITV hasn’t been an investor favorite for a while. Nonetheless, I reckon there’s nonetheless loads of meat on the bones to make it a scrumptious funding.

ITV shares are up 11% over a 12-month interval from 70p at the moment final yr, to 78p at the moment.

It’s not laborious to know ITV’s struggles, and these are additionally ongoing dangers. Firstly, promoting budgets have been slashed as a result of financial volatility. This was an actual cash spinner for ITV.

Subsequent, the rise of streaming giants like Netflix, Amazon, and Apple, to call a couple of, have capitalised on the altering method content material is consumed. As they proceed to pour tens of millions into making blockbuster content material, there’s an opportunity ITV may very well be left behind.

From a bullish perspective, I reckon as soon as volatility dissipates, promoting spending will enhance, and assist enhance earnings and returns.

Subsequent, ITV has a wonderful in-house manufacturing studio. It repeatedly churns out hits, and makes programmes for different broadcasters globally too. This might assist the enterprise transfer ahead, in addition to the shares. Moreover, the agency’s personal streaming providing, ITVX, which it lately revamped, appears to be gaining reputation and market share.

There’s nonetheless heaps to love about ITV, and I reckon now is a chance to purchase a high firm, providing a 6.4% dividend yield to assist enhance passive revenue.