5% dividend yield! A cheap UK dividend share I’d buy today and aim to hold for 10 years

first_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Royston Wild 5% dividend yield! A cheap UK dividend share I’d buy today and aim to hold for 10 years Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Simply click below to discover how you can take advantage of this. Royston Wild | Tuesday, 2nd March, 2021 | More on: VTY Royston Wild owns shares of Barratt Developments and Taylor Wimpey. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Get the full details on this £5 stock now – while your report is free. I think Vistry Group (LSE: VTY) is a very-attractive UK dividend share at today’s prices. The housebuilder trades on a rock-bottom forward price-to-earnings (P/E) ratio of 9 times. The FTSE 250 firm boasts a chunky 5% dividend yield for 2021 too. This is one of the best readings among all of the housebuilding stocks.I own shares in a couple of London-listed housebuilders (Barratt Developments and Taylor Wimpey of the FTSE 100). But I won’t claim that such stocks don’t carry their fair share of risk. Most immediate is the threat of a long and severe downturn in the British economy. The likelihood of elevated unemployment and flat wage growth in this scenario would weigh heavily upon homes demand.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Other industry-specific problems that could damage earnings growth at UK shares like Vistry also exist. They have the problem of construction materials and labour shortages that could dent build rates and push up costs. There’s also the prospect of development problems that can lead to substandard homes being built. Vistry itself (or Bovis as it was then known) was hit by claims of selling shoddy properties in 2016. It was forced to cut production as it refocused on quality over quantity to reassure buyers.  A UK dividend share with 6% yields!Having said all that, I’ve still held my shares in Barratt and Taylor Wimpey. I remain convinced that the profits outlook for such UK shares, including Vistry, remains bright for the next 10 years at least. Britain doesn’t have enough new homes to go around, not by a long chalk. These companies will be needed to lead the charge to keep the country’s growing population suitably housed. Don’t forget government plans to create around 300,000 new homes a year by the middle of the decade.It’s also probable that banks and building societies will continue offering ultra-low mortgage rates to customers. This is not just because I think the Bank of England will keep interest rates locked around current record lows. Intensifying mortgage product wars among Britain’s lenders should help customers tackle the monthly cost of owning a home too.I think that huge government support to help first-time buyers onto the homes ladder will remain in place too. Schemes like the Help to Buy equity loan scheme and specialised ISAs aren’t going anywhere any time soon. And speculation abounds that the government will announce a mortgage guarantee scheme to help buyers in this week’s Budget. It’s hoped the programme will lead to 95% mortgages returning to the market en masse.As I say, Vistry offers a bulky 5% yield for this year. Its underpinned by expectations that annual earnings will soar 125% in 2021. And City analysts expect the good news to keep coming. Another 20% profits rise is anticipated for next year, a prediction which leads to hopes of more dividend growth. As a result the yield at this UK share marches to a mighty 6.1%. FREE REPORT: Why this £5 stock could be set to surge Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images last_img

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