2 UK dividend stocks with 9% yields I’d buy today

first_img See all posts by Roland Head 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. Simply click below to discover how you can take advantage of this. There are a small handful of UK dividend stocks that offer yields of 9% or more. As an income investor searching for high yield, should I buy these for my portfolio?In general, when the market values an income-paying security so lowly, it often means that the payout is expected to fall. That’s a fair warning, but I feel that these shares could be exceptions to this rule.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…I’m confident in this payoutTobacco stock Imperial Brands (LSE: IMB) won’t score highly with ethical investors. But it’s a big, profitable business with determined new management. CEO Stefan Bomhard is doubling down on the group’s core tobacco business and cutting back spending on more speculative new products.This may sound like a backward strategy, given that global smoking rates have been falling for years. However, by controlling costs and maximising the value of brands such as JPS, West, and Gauloises, Bomhard believes he can deliver stable profits and modest dividend growth.City analysts who cover the stock seem to agree. The latest consensus forecasts show dividend growth averaging 3% per year between now and 2023. Forecasts can change, of course, depending on future developments, and can’t be relied on.Is this really a safe dividend stock?I think it’s safest to assume that the tobacco business will remain in decline. Rival BAT expects global sales to fall by 3% in 2021. This adds risk to Imperial shares, because it’s impossible to be sure how quickly smoking rates will fall.  This uncertainty makes it hard to value Imperial shares based on expected long-term earnings and dividends.I can also see some risk that new legal regulations could hit tobacco sales in developed markets, although I feel this is probably less of a concern.Imperial shares currently trade on six times forecast earnings and offer a 9.8% yield. Even with the risks involved, I think that’s cheap. I’d consider buying more of this UK dividend stock for my portfolio.This 9.3% yield tempts meThe second 9%-er I’m looking at today is asset management group M&G (LSE: MNG). This business was spun out of FTSE 100 insurer Prudential in 2019, but M&G has a 170-year history as a savings and investment business.It’s probably fair to say that M&G has not yet convinced investors that it can find a route to growth as a standalone business. Despite generating enough cash to support a generous dividend, the market doesn’t seem keen.This is reflected in M&G’s valuation on eight times 2021 forecast earnings, with a dividend yield of 9.3%. That’s cheaper than most UK-listed rivals.Like most of its peers, M&G saw fund outflows last year as investors withdrew money following the market crash. That’s fairly typical, but M&G doesn’t have the scale of some larger rivals.What’s needed, in my view, is one of two things. Either M&G must bulk up to achieve economies of scale, or it needs to develop a more distinctive niche role. The most likely targets I can see are the UK retail and wealth management sectors, where M&G’s well-known brand could work well.A dividend stock with a 9% yield will always come with some special risk or unusual circumstances. But I’d be happy to put my cash into M&G at current levels, as I believe the shares could perform well over the coming years. “This Stock Could Be Like Buying Amazon in 1997” 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. Roland Head owns shares of Imperial Brands. The Motley Fool UK has recommended Imperial Brands and Prudential. 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 Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 2 UK dividend stocks with 9% yields I’d buy today I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. Roland Head | Saturday, 20th February, 2021 | More on: IMB MNG last_img

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