The best UK dividend shares to buy now are likely to offer more than just a large passive income. They are also likely to have dividends that are amply covered by profit. That means they can maintain their shareholder payouts if the economic outlook deteriorates.
Furthermore, their dividend growth potential could make a significant impact on their appeal. Companies that can deliver a rise in dividends may appeal to a broader range of investors. And they could deliver impressive capital growth.
A large and robust passive income
At the moment, a number of UK dividend shares have high yields. This may tempt passive income investors to buy them based solely on their capacity to provide a generous income stream in the current year.
However, a high yield is of little use if it is not reliable during a challenging period for the economy. As such, ensuring that dividends are … Read more