I really like to purchase dividend shares in my Shares and Shares ISA. Whereas dividends are by no means assured, UK shares have confirmed to be an effective way to make a dependable and ample passive revenue over time.

Buying shares for a second revenue’s an particularly engaging thought this August too. The London inventory market has loved a powerful rally in 2023. However years of underperformance imply that the dividend yields on many high shares stay at distinctive ranges.

Take the next two FTSE 100 and AIM shares, as an illustration. Because the beneath desk reveals, their dividend yields sail above the present 3.5% common for Footsie shares.

The fantastic thing about these shares is that they need to develop dividends over the long term as nicely. Right here’s why I’d purchase them if I had spare money to take a position.

Vodafone Group

Vodafone was for a very long time tipped by buyers and analysts to chop its dividends. They predicted payouts would fall as a result of agency’s excessive debt ranges and vital funding in 5G growth.

This yr, the agency’s lastly bitten the bullet and rebased the dividend. But regardless of this setback, I consider Vodafone shares nonetheless advantage critical consideration from revenue buyers.

At 7%, the telecoms titan’s dividend yield’s nonetheless double the Footsie index common. The large funding it’s making in cell and broadband might pave the best way for stable long-term payout progress too, if income and money flows develop as deliberate.

I’m additionally inspired by its plans to double-down on the good Vodafone Enterprise division, and to proceed increasing in Africa. Natural service revenues on this fast-growing territory soared 10% within the three months to June.

It stays dangerous after years of tried turnarounds and still-high debt.

But Vodafone’s transformation programme to repair its stability sheet and reduce prices ought to enhance its possibilities of rising dividends once more. This features a discount in its international headcount of some 11,000 roles.

Tritax EuroBox

Tritax EuroBox owns and lets out warehouses throughout Continental Europe. So the dependable rental revenue it receives permits it to pay a gradual dividend to its shareholders.

Demand for the storage and logistics property it specialises in is booming. That is because of themes like provide chain onshoring, the expansion of on-line buying, and fast knowledge centre growth.

On an annual foundation, the European weighted prime common hire on this sector rose by 6.6% in Q1. That’s in line with research from property agency JLL.

Progress has been cooling, which may’t be ignored. But these will increase stay far forward of these seen in different actual property segments. Weak growth exercise suggests rents ought to preserve rocketing too.

As I stated on the high, dividends aren’t assured. However the agency’s coverage of paying out at the very least 85% of adjusted earnings to shareholders is an efficient omen for revenue buyers.

Present financial weak spot in Germany might hamper income progress within the nearer time period. However, on stability, I nonetheless consider Tritax EuroBox may very well be a high inventory to contemplate shopping for.