I’m on the lookout for one of the best dividend shares to purchase for a market-beating passive earnings. And I feel I’ve discovered two which have wealthy histories of dividend development.

This isn’t all. Whereas dividends are by no means assured, these corporations — revealed within the desk beneath — provide dividend yields that sail above the three.5% common for FTSE 100 shares.

If dealer estimates show appropriate, £20,000 invested equally throughout them might yield £1,080 in 2024. That’s based mostly on a mean 5.4% ahead yield.

I’m assured they might develop their dividends over time as effectively. Right here’s why I feel they’re value contemplating for a second earnings.

In restoration

There’s an enormous quantity of uncertainty that also surrounds the UK housing market, and with it, the earnings (and dividend) prospects of housebuilding shares.

The business’s restoration has weakened extra lately as mortgage charges have ticked up once more. However make no mistake, the outlook has improved from six months in the past. Property company Savills has even upped its dwelling price forecasts, now anticipating common values to rise 2.5%. The enterprise had beforehand tipped a 3% fall.

So I’m contemplating rising my current stake in development big Taylor Wimpey. Sturdy buying and selling information right here of late definitely factors to situations grow to be extra steady.

Excluding bulk gross sales, its web non-public gross sales fee between 1 January and 21 April was 0.69 per outlet per week. This was up from 0.66 in the identical 2023 interval.

The builder’s order ebook was down round £300m 12 months on 12 months within the interval. However orders nonetheless stood at £2.1bn as of April, giving it stable earnings visibility for the close to time period.

Taylor Wimpey has a powerful report of dividend development, with payouts having solely fallen in the course of the center of the pandemic. And Metropolis analysts count on shareholder rewards to maintain rising this 12 months, leading to that massive 6%-plus dividend yield.

With a powerful stability sheet — it had £677.9m of web money as of December — it appears to be like in fine condition to satisfy this bullish forecast too.

One other dividend hero

Recovering properties demand additionally bodes effectively for constructing materials suppliers like Michelmersh. This former penny inventory makes 125m clay bricks and pavers every year that it sells to the development and RMI (restore, upkeep and enchancment) sectors.

Like Taylor Wimpey, it’s additionally been exhibiting inexperienced shoots of restoration of late. In mid-Could, It introduced that “order intake momentum [is] at levels not seen since the end of 2022” which, in flip, is “driving improved quantity and high quality of the ahead order ebook“.

This explains why Metropolis brokers suppose Michelmersh’s stable observe report (excluding the pandemic, as proven above) will proceed.

And just like the housebuilder I’ve described, a sturdy monetary base provides present forecasts added energy. It held web money of £11m on the finish of 2023.

Brickmakers like this are weak to a sudden spike in vitality costs. However all issues thought-about, I feel this can be a prime dividend share to think about, and particularly at right this moment’s price. It at the moment trades on a price-to-earnings (P/E) ratio of simply 9.7 instances.