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BIG dividends! 3 UK shares I’d buy and hold for 10 years

·3-min read
The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.

As a long-term investor there are plenty of great UK shares for me to choose from. The possibility of fresh economic trouble as the world emerges from Covid-19 doesn’t put me off. As someone who invests with a view to holding stocks for a minimum of 10 years I’m not bothered by the prospect of fresh volatility on share markets. The cream always rises to the top, as they say. Here are three top-quality dividend shares on my radar today.

An ultra-defensive UK share

Assura’s a big-paying dividend share that’s also great if one’s looking to invest with little drama. This is because it’s involved in the design, construction and management of primary healthcare facilities in the UK. This part of the property market is one of the most stable out there. And it’s one that’s set for strong growth in the decades ahead as Britain’s population steadily ages. This UK share carries a hefty 4% dividend yield for this financial year.

I think Assura’s a great buy even if its thirst for acquisitions leaves it open to nasty surprises later down the line.

A great FTSE 100 share

The eternal need for healthcare services is what makes Assura such a stress-free pick for investors like me. And I’d say that the predicable nature of weapons spending provides FTSE 100 stock BAE Systems with equally-excellent earnings visibility. Warfare is an enduring product of human existence and not even the worst economic crisis for decades seems to be derailing arms budgets amongst major nations.

For example, the US Department of Defense has just submitted a $715bn budget request for the 2022 fiscal year, up $10bn from last time out. BAE Systems might not have things all its own way, though, if the persistent threat of curtailing arms sales to Saudi Arabia comes to pass. This Footsie share sports a 4.6% forward dividend yield.

5.6% dividend yields

Aviva (LSE: AV) is another FTSE 100 dividend share I think is worthy of serious attention. Firstly its forward yield clocks in at a mighty 5.6%. And secondly the insurance colossus trades on a rock-bottom price-to-earnings (P/E) ratio of around 8 times.

It’s certainly true that this UK blue-chip share carries a lot of debt on its balance sheet. This is something that could theoretically hamper its ability to pay big dividends in the short-to-medium term at least. That said, Aviva is making great progress in getting this paid down and it reduced the debt pile by £1.9bn in the first quarter through asset sales. These disposals are also helping to turn the Footsie company into a leaner earnings-creating machine that’s better focused on key growth sectors in the UK, Ireland and Canada. I reckon the next decade could be extremely exciting in the history of Aviva and those other shares described above.

The post BIG dividends! 3 UK shares I’d buy and hold for 10 years appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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