Whether I’ve bought an present portfolio of dividend stocks or am simply beginning out, investing £1,000 isn’t a foul factor. It permits me to place chunk of cash to work. Hopefully, from good decision-making I can look to generate passive income at a price that’s larger than different options. With that in thoughts, listed below are a number of the areas that embrace the top dividend stocks proper now, in my opinion.What makes a top UK dividend inventory?Before I am going straight into specifics, I need to make clear what I imply when referring to a top UK dividend inventory. It’s not simply the stocks that supply the very best dividend yield. This is as a result of a excessive yield isn’t the one issue that goes into my decision-making.Other elements embrace the dividend cowl, the historical past of previous dividend funds and my private outlook on the corporate. For instance, I’d think about a relatively-low-dividend-yield inventory to be a top contender if the corporate is more likely to make a excessive revenue this yr and pay out a beneficiant future dividend.On the flipside, I’m unlikely to place in my class of top UK dividend stocks a agency that has a falling share value and a falling stage of dividend cowl. Even if the present yield is 10%+, I’d be involved right here.Where I’d look to invest nowNow that I’ve bought a clearer image of what precisely I’m trying for in a top UK dividend inventory, I can transfer ahead. At the second I’m eager on corporations inside funding banking and monetary providers.I’d be selective and keep away from excessive avenue banks as a result of robust 2020 they noticed. However, I’d look in the direction of asset managers and insurance coverage suppliers. Examples right here embrace M&G, Schroders and Standard Life Aberdeen. I like these corporations as a result of the dividend yield is larger than common. At the identical time, the enterprise fashions are sturdy and so liquidity shouldn’t be a problem in paying out dividends going ahead.The draw back of focusing on this business is that they’re all uncovered to the potential of one other inventory market crash. If traders pull out funds from these suppliers then belongings beneath administration (and costs) would fall. However, with the FTSE 100 pushing previous 7,000 just lately, I see this danger as small.Story continuesAnother space in which I believe I can discover top UK dividend stocks is utilities. I see them as being sturdy and sustainable, having made it via the pandemic comparatively unscathed. Consumers could store round extra for a supplier, however the business in basic is a necessity.To this finish, I like SSE, United Utilities and Severn Trent. The lowest yield right here presently is circa 4%, so above the FTSE 100 common of two.9%.I do have to be careful for any potential dividend discount as a result of massive capital expenditure or growth initiatives. These will be widespread in the business and might drain funds that might be in any other case used for dividend funds.Overall, the above corporations characterize my top UK dividend stocks to look to purchase in the intervening time with my £1,000.The publish I’d invest £1,000 in these top UK dividend stocks for passive income today appeared first on The Motley Fool UK.More readingjonathansmith1 has no place in any of the shares talked about. The Motley Fool UK has no place in any of the shares talked about. Views expressed on the businesses talked about in this text are these of the author and subsequently could differ from the official suggestions we make in our subscription providers resembling Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we consider that contemplating a various vary of insights makes us higher traders.Motley Fool UK 2021
I’d invest £1,000 in these top UK dividend stocks for passive income today
