Wish to make a market-beating second revenue? There’s no higher place to go looking for dividend shares than the London inventory market, for my part.

The UK is residence to a whole lot of shares providing massive and rising dividends. And following years of underperformance, many of those firms provide actually distinctive yields proper now.

Listed below are two revenue heroes which have grabbed my consideration. Because the desk under exhibits, their ahead dividend yields for this 12 months soar above the three.6% common for FTSE 100 shares

If dealer forecasts show to be true, a £20,000 lump sum invested equally throughout these two firms would supply a £1,480 passive revenue over the subsequent 12 months.

There’s a great likelihood that every inventory will steadily develop dividends over the long run too, for my part. That mentioned, it’s necessary to do not forget that shareholder payouts are by no means assured.

With this in thoughts, let me clarify why I believe these explicit dividend shares are value critical consideration in the present day.

Housing big

Housebuilder Taylor Wimpey has steadily elevated dividends following the height of the Covid-19 disaster. Nonetheless, with rising rate of interest hikes having dented houses demand extra just lately, Metropolis analysts anticipate shareholder payouts to say no modestly in 2024.

But because the desk exhibits, the Footsie firm nonetheless has a really massive dividend. And I consider will probably be in good condition to develop dividends once more ought to rates of interest start falling within the coming months, as seems doubtless.

Pleasingly the market is already displaying indicators of stabilisation. Taylor Wimpey’s internet non-public gross sales fee per outlet per week bounced again to 0.73 between 1 January and 21 April. This was mainly unchanged 12 months on 12 months.

The long-term outlook for Britain’s housing market stays strong, for my part, which bodes effectively for future shareholder returns.

It’s inconceivable to foretell the subsequent housing market downturn, however a rising home inhabitants ought to proceed to push demand for new-build properties up. And Taylor Wimpey might obtain an added enhance from the Labour authorities’s pledge to construct 300,000 new houses a 12 months to 2029.

Sunny outlook

In some methods, Foresight Photo voltaic Fund could possibly be thought of ultimate as a dividend inventory. Its revenues are linked to inflation; it’s extremely money generative; and the steady nature of electrical energy demand means earnings stay steady throughout the financial cycle.

The corporate operates a whole lot of photo voltaic farms within the UK, offering sufficient electrical energy for greater than 400,000 houses. It additionally owns inexperienced vitality property in Spain and Australia, which in flip helps it to unfold threat.

In latest instances the corporate has raised its dividend goal. And so the dividend yield for 2024 stands slightly below a superb 9%. A shiny outlook for the renewable vitality sector suggests it might proceed delivering massive and rising dividends lengthy into the long run too.

One concern I’ve associated to the FTSE 250 agency’s excessive price-to-earnings (P/E) ratio of 25.3 instances. A hefty valuation like this might spark a share price correction if information all of a sudden disappoints.

However on steadiness, I consider that — — like Taylor Wimpey — it’s a high inventory for dividend traders to think about in the present day.