8%+ yields! Two dividend shares on my April shopping list

Could now be a good time to boost my passive income streams by buying more dividend shares for my portfolio? I certainly think so! I like the look of some of the shares I see at what I regard as bargain prices right now.

Here are two I will be happy to buy in April, if I have spare cash to invest.

M&G

I already own shares in asset manager M&G (LSE: MNG). But a recent share price fall combined with an increased dividend means the current yield is 10.9%. A double-digit yield from a FTSE 100 share like M&G is not very common.

Could it be a signal that some investors fear a dividend cut? After all, choppy markets may lead to investors withdrawing funds from asset managers, hurting revenues and profits. M&G made a GBP1.6bn post-tax loss last year.

That sounds bad, but changing asset values can reflect reported earnings values of firms like M&G substantially. I see the underlying business as being in good health. The company raised its annual dividend by 7%.

It has also spent half a billion pounds over the past year buying back its own shares. That is a vote of confidence by management that it has ample cash to spare, in my opinion. With a strong brand, ongoing customer demand for financial services and a footprint in over two dozen markets, I think M&G has solid future potential.

The shares have fallen 19% in a year and I regard the current price as attractive.

Legal & General

Among the other dividend shares on my April shopping list is another financial services provider, Legal & General (LSE: LGEN). The fund manager has a well-known brand, storied heritage and large customer base. It is also a profit machine, reporting post-tax earnings of over GBP2bn in each of the past two years.

For a firm with a market capitalisation of under GBP14bn, that is impressive. It also means this dividend share now trades on a price-to-earnings ratio under 6. That looks cheap to me for a high-quality FTSE 100 firm like this.

Customers withdrawing funds is a risk to revenues at L&G just like it is for M&G. I think the company’s diversified business in multiple markets may help it maintain its strong performance. Even in its worst year out of the past five, the business managed to book post-tax earnings of GBP1.3bn.

Although dividends are never guaranteed, Legal & General’s strategy is to raise the annual payout by a mid-single-digit percentage amount. That has meant a 5% increase in each of the past two years. I think this is likely again this year.

The yield is currently 8.4%. Legal & General has a higher yield than many FTSE 100 dividend shares. But it is a well-established, highly profitable and proven business.

I would be happy to tuck it away in my portfolio for the long term.

Tags:

eflorist listed on couponmatrix.ukjust-vitamins listed on couponmatrix.ukkwik-fit listed on couponmatrix.uklightwater-valley listed on couponmatrix.uksephora listed on couponmatrix.ukthe-watch-hut listed on couponmatrix.uk
eflorist listed on couponmatrix.ukeFlorist is a sweetie shop of delights for fresh blooms and blossoms. Scrolling through the colourful delights on offer it will be very tempting to send a bunch or two to yourself, and why not, you deserve it! eFlorist have been in the flower business since 1947 and were formerly known as Teleflorist. Use an eFlorist discount code to shop the network of over 2000 local florists who handcraft bespoke bouquets to order and will even hand deliver them to your recipient of choice.
just-vitamins listed on couponmatrix.ukMake sure your defences are in top tip condition with a selection of products from Just Vitamins, who sell the vitamins, minerals, herbs and nutritional supplements you need to keep you in good health and feeling great. With a Just Vitamins discount code you can cut price your order of vitamins - staying healthy needn’t cost the earth! From kids to adults, no matter your requirement Just Vitamins has the vits for you.
kwik-fit listed on couponmatrix.ukWhenever your motor needs some maintenance, know that there’s always a trusted technician waiting at your nearest Kwik Fit. As a bastion of motoring knowledge, components and services, all a worried driver needs is a Kwik Fit discount code to secure unbeatable value on their tune-up. From the grip of your tyres to the temperature of your air conditioning, there’s no aspect of your vehicle that can’t be improved with the help of Kwik Fit.
lightwater-valley listed on couponmatrix.ukTake a break and cut loose with the family at Lightwater Valley, North Yorkshire’s leading theme park. A staple of British fun for over 50 years, Lightwater Valley hosts heartbeat-raising attractions for people of all ages to enjoy for less with a Lightwater Valley discount code. Whether you love slip and sliding on water-fuelled rides, playing mini golf with the family or simply trying every ride, you’ll get your days’ worth of fun at Lightwater Valley.
sephora listed on couponmatrix.ukSephora is like the big sister of the beauty world, and it’s now Feel Unique’s brand-new home! Choose from thousands of the top brands in makeup, fragrance and skincare – instead of a Feel Unique discount code, you’ll want a Sephora promo code from Groupon instead. Sephora is stocked with world-leading brands like Huda Beauty, DIOR and Charlotte Tilbury, and there are now even more great offers to enjoy, including 10% off your favourite brands, free gifts and Sephora voucher codes.
the-watch-hut listed on couponmatrix.ukIf you're a bit of a stickler for a great looking timepiece then why not keep your eye on the time and bag yourself a luxury watch from The Watch Hut. All tastes are catered for and, with a wide selection of brands to choose from for men and women, including Michael Kors, Casio, Seiko and DKNY, why not use The Watch Hut discount code and get one as a gift for a loved one or a treat for yourself.