Stock market

7%+ Profit Yield! Here are 2 of the best UK shares to consider buying in June.

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Lately, I’ve been on a mission to build a few other income streams. One way to do this is to buy UK shares with high dividend yields.

I believe this is one of the easiest ways to start a steady passive income stream. By investing in stocks that offer attractive yields and increasing my returns through reinvestment, I want to set myself up for a comfortable retirement.

Average yield on FTSE 100 About 4% but I have found two stocks that pay much more than that. At over 7% each, I think dividend-hungry investors should consider buying these two stocks today!

Imperial Brands

My first choice. Imperial Brands (LSE: IMB). The 100-year-old tobacco company offers a dividend yield of 7.58%. This is the sixth highest on footsie.

But production isn’t the only thing about the firm that’s impressed me lately. Tobacco isn’t exactly a popular industry these days, but Imperial is working hard to keep shareholders happy. Although cigarettes are its main money maker, the firm has had great success with its Next Generation Products (NGP). These include alternative tobacco brands. please And Blow E-cigarettes

In its half-year results published on March 15, the firm disclosed a 16.8% increase in NGP brands and a 2.8% increase in adjusted operating profit.

But of course it is tobacco. I get it – it’s a dying industry. New laws are being implemented in the UK to restrict sales to new customers. Eventually, the sale of cigarettes will be stopped entirely. But for whatever reason, people like to smoke and if it can be done in a healthy way, then I support the cause.

Naturally, Imperial has its bottom line in mind but at least it’s doing something to address health concerns. If I can support it while making a profit, I see that as a win. For anti-tobacco people Legal and General Another great option with an even more impressive 8% dividend yield.

HSBC

Another top dividend-paying favorite of mine is Europe’s largest bank by assets, HSBC (LSE: HSBA). The company recently offloaded its business in Argentina for a $1 billion loss, while inflation in the struggling South American nation has hit 276 percent. The sale follows the closure of its retail banking operations in Brazil in 2015, as the bank focuses on fast-growing markets in Asia.

While the loss will hurt the bank’s first-quarter results in 2024, I think it is the best long-term decision.

With this issue resolved, the bank can now focus on the next task – appointing a new CEO. Last month, current CEO Noel Quinn announced his surprise early retirement and will step down in April next year. During his five-year tenure, Quinn oversaw the sale of the business in the US and Canada, further expanding the company’s focus on Asia. It also rejected proposals by major shareholder Ping An to spin off its Asia business in Hong Kong.

What this means for the bank’s future remains to be seen. But for now, it pays a handsome 7% dividend and I see no reason to change that. Payouts have increased and become more consistent since Covid, with yields forecast at 7.3% over the next three years.


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