Investing in a Self-Invested Private Pension (or SIPP) is ideal for an investor with a long-term method to investing, like me.

Alongside the way in which, as dividends pile up they are often stored throughout the SIPP and used to fund the acquisition of extra shares without having so as to add further capital. That easy however highly effective investing method is called compounding.

A SIPP investor may have the most effective of each worlds, including in new funds concurrently compounding dividends from present holdings to purchase extra shares.

Listed here are 5 UK dividend shares for income-focussed SIPP traders to think about. Every yields not less than 5.2%.

ITV

Broadcaster ITV (LSE: ITV) has a coverage of paying not less than 5p per share as a dividend yearly. In its outcomes this month, it delivered as soon as extra on that and in addition talked about that it expects to develop the dividend over the medium time period.

Provided that the ITV share price is in pennies, that implies that the FTSE 250 broadcaster now yields 6.5%.

Nonetheless, the share price has disillusioned and is now 9% decrease than it was 5 years in the past.

I feel that displays ongoing investor concern in regards to the enterprise prospects. Conventional broadcasting stays important however is in decline. ITV has expanded its digital providing significantly, however that prices cash and the market is far more fragmented, making it more durable to construct economies of scale.

However I feel its mental property, viewer base, and studio rental enterprise are all aggressive benefits.

Aviva

Insurance coverage could also be boring however it may be profitable. Insurer Aviva slashed its dividend per share in 2020 however it has since been elevating it handily.

Final 12 months noticed a 7% improve within the dividend per share and Aviva now yields 6.6%. Its sturdy manufacturers mixed with an enormous buyer base (over 17m within the UK alone) are actual strengths for my part.

A proposed mixture with Direct Line may speed up progress and add economies of scale. However it additionally dangers distracting administration from the core enterprise.

WPP

One other agency that has reduce its dividend over the previous few years is promoting community WPP. However its yield nonetheless stands at a juicy 6.2%.

Can it final?

The Metropolis appears nervous in regards to the dangers AI poses to plenty of the advert creation and advert house shopping for work WPP at present does. The share has already fallen 24% in 2025.

However I reckon its confirmed enterprise mannequin, shopper relationships, and enormous company community are strengths. AI may assist cut back prices so could also be a chance, not only a risk.

J Sainsbury

Retailer J Sainsbury wants little introduction. Its 5.2% yield makes it a share I feel earnings traders ought to contemplate.

Each within the grocery store enterprise and thru its Argos operation, the FTSE 100 firm has achieved a very good job of integrating digital and offline buying.

However a weak financial system may put additional strain on revenue margins, as rivals reduce costs to draw buyers.

BP

5.8%-yielding BP has been doing what appears like a U-turn, ditching a lot of its renewable power focus to place extra emphasis on oil and gasoline.

I see that pretty much as good for profitability. However it does improve the chance to each gross sales and income if the oil price crashes, because it tends to do on occasion.