I’m on the on the lookout for the very best excessive dividend yield shares to purchase in October. Extra particularly, I’m looking for corporations whose yields sail above the Footsie‘s 3.6% ahead common.

Listed here are three of my favourites from the FTSE 100 and FTSE 250 indexes.

City Logistics REIT

Property shares will be an effective way to generate long-term passive earnings. They typically have tenants locked down on long-term contracts, which — excluding some company disaster — means they take pleasure in a gradual stream of earnings they’ll then distribute to shareholders.

Actual property funding trusts (REITs) will be particularly nice property shares for dividends. In trade for tax perks, these corporations should pay out at the least 90% of their annual rental earnings to shareholders.

Please word that tax remedy is determined by the person circumstances of every consumer and could also be topic to vary in future. The content material on this article is offered for data functions solely. It’s not supposed to be, neither does it represent, any type of tax recommendation.

UK buyers at present have round 50 REITs to select from. Considered one of my favourites is City Logistics (LSE:SHED), thanks partially to its big 6.2% ahead dividend yield.

I additionally like City Logistics due to its concentrate on warehouses and distribution hubs. It’s properly positioned to capitalise on themes like the expansion of on-line procuring and modifications to provide chain fashions.

I believe the inventory’s price contemplating, although elevated rates of interest proceed to have an effect on present earnings.

Financial institution of Georgia Group

Investing in rising markets will be dangerous enterprise. That is no higher demonstrated than by Financial institution of Georgia Group (LSE:BGEO), whose slumping share price displays political uncertainty within the Eurasian nation.

The tug-of-war between legislators may have important opposed implications for Georgia’s financial system, and, by extension, its banks. I’d argue, nevertheless, that that is mirrored in these corporations’ present rock-bottom valuations.

Financial institution of Georgia, as an illustration, now trades on a ahead price-to-earnings (P/E) ratio of thrice.

With the enterprise additionally carrying a 7.7% dividend yield for 2024, I believe it may very well be a terrific dip purchase.

Issues are at present nonetheless wanting good for the financial institution and its home rivals. Mortgage demand is hovering, and appears set to proceed to as private wealth ranges enhance. Financial institution of Georgia’s growth into Armenia provides it further alternatives to develop earnings, too.

M&G

With a 9.9% ahead dividend yield, M&G (LSE:MNG) is tipped to be one of many FTSE 100’s greatest dividend payers this 12 months.

It displays the corporate’s cash-rich steadiness sheet, to not point out its lengthy dedication of delivering market-beating payouts. The corporate’s Solvency II capital ratio was 210% as of June, up 7% from a 12 months earlier.

As an asset supervisor, M&G is very delicate to actions on monetary markets. So points like a US recession and continued financial slowdown in China pose threats to the corporate.

But as a long-term investor I’m nonetheless very optimistic in regards to the firm. As Britain’s inhabitants ages and monetary planning will increase, I believe M&G stands to win tonnes of recent enterprise within the years forward, helped by its sturdy model.