I’m searching for some top dividend stocks to buy for my shares portfolio. Here are some excellent income shares I’m considering snapping up right now.

WH Smith

Retailer WH Smith has been washed out in recent years by Covid-19 disruptions to the travel industry. It has a hefty footprint in airports and train stations and invested shedloads to improve its global store estate before the pandemic. With the public health emergency seemingly receding, however, I think now could be the time to buy into the business.

Now, WH Smith doesn’t offer the biggest yields out there (it actually sits at 0.6% for this financial year). But the prospect of strong dividend growth still makes it an attractive buy in my book. City analysts think the annual payout will more than treble over the next two years, pushing the yield to 2%. I’d buy WH Smith, though bear in mind that any Covid-19 upturn could smack profits again.

Ocean Wilsons Holdings

The shipping industry is enjoying a resurgence right now. Charter rates have gone through the roof thanks to the rebounding global economy and a huge shortage of vessels. Ocean Wilsons Holdings — which owns a controlling stake in Brazilian maritime services provider Wilson Sons — is also capitalising on the market rebound. The dividend yield here clocks in at 5.5% for 2022.

Latest financials showed revenues up 18% in the three months to September. This was “principally due to strong towage volumes and growth in logistics and container terminals over the previous year,” Ocean Wilsons said. I think the business should continue to thrive as global trade picks up too. Though bear in mind that Ocean Wilsons also operates a portfolio of international fund investments. Profits could therefore take a hit if global stock markets begin to slump.

Halfords Group

The amount of miles we collectively clocked up on our bikes ballooned during coronavirus lockdowns. Many (myself included) believe that the cycling craze is here to stay. People are exercising more frequently, reducing the use of their cars to help the environment, and shunning public transport as travel costs boom.

I’d buy cycle and car products retailer Halfords Group to make money from the cycling phenomenon. The 2.8% dividend yield for this year isn’t exactly huge. But I think the prospect of large payout hikes still makes it an attractive dividend stock to buy (City analysts think the annual payout here will jump 14% next year, for example). I think it’s a great stock to own despite the ongoing threat of supply chain problems.

Warehouse REIT

E-commerce in Britain is expected to continue growing rapidly over the next decade at least. Online shopping revenues will come in at $119.1bn by 2025, Statista researchers say, up more than $15bn from last year’s levels. Id buy Warehouse REIT to capitalise on this growing market. The properties it owns are essential in helping retailers and manufacturers get their products to customers.

I like this UK share because it’s particularly good for receiving a healthy passive income. Under real estate investment trust (or REIT) rules it has to distribute 90% of annual profits in the form of dividends. This explains why the yield here sits at a decent 3.9% for this year. I think the benefits of owning this share outweigh the risk that demand for its properties could fall if economic conditions worsen.

Centamin

Gold prices recently soared to multi-month highs as fears over the Ukraine crisis grew. But of course the threat of new conflict in Europe isn’t the sole driver of precious metals prices right now. Jaw-dropping inflation rates are also fuelling price rises as investors fear economically damaging interest rate hikes. Finally, strong demand for physical gold in China is also helping metal values to rise. I think now could be a good time to buy Centamin (LSE: CEY) shares.

The downside of buying gold producers like this is that they expose me to the unpredictable and costly business of metals production. But on the upside, some mining companies offer dividend yields that could be too good to miss. Centamin itself offers a 5.1% dividend yield for 2022.

NextEnergy Solar Fund

There are many renewable energy stocks I can buy to make money from growing demand for clean energy. I feel that NextEnergy Solar Fund could be one of the best stocks for me to buy as a dividend lover. In part this is due to the forward yield here sitting at a mammoth 7%. It’s also because the services of energy producers like this remain critical at all points of the economic cycle. The exceptional profits stability that this provides gives the likes of UK-focused NextEnergy the financial firepower and the confidence to pay big dividends year after year.

The main problem with investing in renewable stocks like this is that they only generate large amounts of power when the sun is shining or the wind is blowing. Therefore profits can be hit in times when weather conditions are unfavourable. But largely, solar is a proven way of efficiently producing power. This means that over the long term energy firms like NextEnergy could produce excellent returns to their shareholders.

Residential Secure Income REIT

Residential rentals business Residential Secure Income REIT is, to my mind, one of the safest dividend stocks out there. Having a roof over one’s head is one of life’s essentials, meaning that profits at companies like this remain stable during economic upturns and downturns. This gives it the confidence and the financial means to pay big dividends year after year. The yield here for 2022 sits at 4.8%.

Demand for Residential Secure Income’s properties could take a hit if the Bank of England relaxes mortgage affordability rules for buyers. But as things stand, the market outlook remains very encouraging for the business. Consultancy Capital Economics says that Britain needs 227,000 new rental properties every year over the next decade to keep up with demand.

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

My favourite penny stock to buy right now is also an income champion. What’s more, while it qualifies as a penny stock, the company has a market capitalization of £1.6bn. This suggests the business has fewer risks than smaller enterprises, which usually fall into the penny share bracket. 

The company I am talking about is Assura (LSE: AGR). The corporation is a leading primary care property investor and developer. It owns an expanding portfolio of 634 properties in the healthcare sector across the UK. 

Defensive sector 

Healthcare is one of the most defensive sectors on the stock market. Property is also generally considered to be a defensive sector. The healthcare property sector combines the benefits of both. Most healthcare facilities are constructed to a specific standard, and they are let on extended leases to providers such as the NHS. 

With its steady, predictable income stream from the property portfolio, the penny stock has become an income champion over the past five years. At the time of writing, the stock supports a dividend yield of 5%. The payout has grown at a compound annual rate of 5% over the past six years as the company has increased the size of its property portfolio and expanded the rent roll. 

Assura’s management plans to grow the portfolio further over the next couple of years. It has a development pipeline of 22 new schemes, and £71m of portfolio acquisitions were being negotiated at the beginning of the year. 

As the company has expanded, it has relied heavily on shareholders to provide additional capital. The average number of shares in issue has increased from 1.3bn in 2016 to 2.7bn. This dilution means that as the enterprise has increased the value of its portfolio by around 100% over the past six years, book value per share has risen by just 26%.

The potential for further dilution is a significant risk facing investors. The company also has around £1bn of debt. The cost of this debt could increase with higher interest rates. 

Penny stock buy 

Despite these challenges, I think the healthcare facilities provider is one of the best investments to buy now for my portfolio

In fact, I think the business has fantastic potential over the next decade. Healthcare spending in the UK is only going to increase.

The government has already laid out plans to open up more healthcare facilities across the country to deal with the current NHS backlog. This presents a fantastic opportunity for the group to acquire and build new facilities to meet the demand from the health service.

With demand for these facilities set to grow in the years ahead, it looks as if Assura’s dividend payout can continue to rise over the next decade and beyond. Considering its income and growth potential, I would be happy to buy the penny stock. 

Rupert Hargreaves 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.

Although interest rates and bond yields are starting to rise, they are still low in comparison to past rates. This means that it’s important to find other sources of passive income. Dividend stocks are a great example, as some companies offer yields of around 10%. When I buy dividend stocks, I look for both healthy yields and sustainability in the payouts. These are two stocks that fit these criteria, and this makes them ‘no-brainer’ buys for me.

Rising dividend

Legal & General (LSE: LGEN) has managed to see consistent dividend growth over the past few years. In fact, the full-year dividend has risen from 4.75p per share in 2011 to 17.57p per share last year. It is expected to see further growth this year when the full-year results are announced next month. As such, it currently holds a yield of around 6.5%, far higher than the majority of other FTSE 100 stocks.

Unlike some other dividend stocks, this high yield also seems sustainable. For example, it its first-half results, the company made operating profits of over £1bn. The full-year dividend is expected to cost just over £1bn, meaning that, provided full-year profits remain healthy, there should be plenty of cash to invest into the company.

Overall, I’m also confident in the prospects of the company. This is despite the risk of a slowing economy, which could strain profits, and potentially the dividend. Nonetheless, there is currently robust demand for the company’s pension risk transfer programme and its annuities portfolio, and with the ageing population, demand seems set to increase further. Accordingly, I’m looking to add more L&G shares to my portfolio.

A renewable energy dividend stock

Due to my concerns over the future of oil, I’m staying away from oil dividend stocks, and opting for renewable energy stocks instead. NextEnergy Solar Fund (LSE: NESF) is my personal favourite. As the name suggests, this fund owns multiple solar assets around the world, yet predominantly in the UK. Recently, it has added five additional operating solar assets, taking its total to 99. This means that the total installed capacity has reached 895MW, a 10% rise since March 2021.

Personally, the biggest attraction for me is the company’s large and growing dividend. In fact, it currently yields over 7%, surpassing yields of some major oil stocks. Especially in the context of global gas shortages and climate change, renewable energy is also becoming increasingly important. Therefore, I hope that profits, and therefore the dividend, can continue to grow.

There is one major risk with the dividend, however. Indeed, it currently only has a cash dividend cover of 1, meaning that all the profits are paid out as a dividend. If profits decrease, this means that the dividend may have to be cut. It also restricts the amount of cash being reinvested into the company.

Despite this risk, I’m still confident in the future of the fund, and even if the dividend must be cut, it would still have a large yield. It would also likely be a short-term problem. As such, I’ll continue adding NESF shares to my portfolio for a passive income.

Stuart Blair owns shares in Legal & General and NextEnergy Solar Fund. 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.

There are at least three companies in the FTSE 100 I believe could significantly enhance my wealth by 2030. These firms have a strong position in their respective markets and have scope to expand in the years ahead. 

FTSE 100 retailer

The first blue-chip business on my list is JD Sports (LSE: JD). This retailer occupies a strong niche in the UK sports footwear market. It is also expanding rapidly around the world. It is one of the few UK retailers that has been able to take market share in the US, a traditionally difficult market for these businesses. 

Of course, there is still a risk that the firm could hit a wall. It could end up overexpanding, and this might lead to losses for investors. 

Management has outlined its plans to expand further in the years ahead by pushing into new markets and opening more stores. While the stock is a bit on the pricey side, I think it is worth paying a premium to buy into JD’s growth over the next few years. These are the reasons I would buy the business for my portfolio. 

International expansion

I would also acquire FTSE 100 business Ashtead (LSE: AHT). The equipment rental sector can be fantastic. The initial capital costs can be demanding, but after the equipment is acquired, a company can lease it out again and again, earning a high return on investment.

Ashtead has been reinvesting its profits back into growth over the past decade, and it now has a strong footprint in both the UK and US.

Unfortunately, the nature of this market means the firm is highly exposed to the economic environment. A sudden downturn in construction activity could significantly impact the business and its growth potential.

Management may have to re-evaluate growth plans in this scenario, and the company’s expansion may not live up to my expectations. 

Despite this risk, I believe there will always be demand for equipment rental services in the UK and US. That is why I would acquire the stock right now. 

Buy, build, sell

The final company I believe has the potential to grow my wealth significantly over the next couple of years is Melrose Industries (LSE: MRO). The engineering group has a strong track record of buying, improving and selling engineering enterprises. Its most recent acquisition was engineering conglomerate GKN. 

This strategy has produced strong returns in the past, although there is no guarantee this will continue. There will always be the chance Melrose could find itself over its head and unable to manage an acquisition. In this scenario, the FTSE 100 company may have to ask shareholders for additional cash. 

Still, with the outlook for the economy improving, I believe the engineering group has scope to grow substantially over the next couple of years. 

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Melrose. 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.

I think the chances of a stock market crash in 2022 are growing.

I believe a couple of factors could contribute to a market decline over the next couple of months. The most pressing is inflation. Prices are rising worldwide as the supply chain crisis forces companies to rethink their pricing strategies.

At the same time, the prices of essential commodities have jumped over the past 12 months. This is also pushing up the cost of production for many companies, and they have to pass on these additional costs to their customers. 

As the costs of goods and services increase, workers are demanding higher wages, and this is putting further pressure on corporate profit margins. 

To try and deal with rising inflation pressures, central banks around the world are starting to increase interest rates. These actions are designed to increase the cost of borrowing for consumers and businesses, reducing demand.

Challenging environment

As such, over the next few months, many companies could face a challenging environment of lower demand and higher prices. Businesses cannot pass higher costs on to consumers if consumers do not want to spend their money. 

If corporate profit margins come under pressure, investors could decide to start selling high-flying growth stocks. This has already started happening, and the selling is spreading to other parts of the market.

If the trend of rising prices and stagnating consumer demand persists throughout 2022, I think the trickle of investors selling will turn into a flood. This could ignite a stock market crash. 

That being said, there is no guarantee that the market will crash or indeed decline over the next 12 months. The market could surprise everyone and rise another 20%. It is impossible to tell at this point.

Therefore, while I am preparing for a stock market crash in 2022, I am not going to sell all of my investments and sit on cash. 

Stock market crash strategy 

Instead, I am doubling down on the approach I have been following for the past decade. I am looking to invest my money in high-quality firms with large profit margins and substantial competitive advantages. Companies that exhibit these qualities should be able to navigate the economic environment relatively well, although there is no guarantee they will outperform. 

Some of the organisations that I believe exhibit these qualities include Watches of Switzerland Group and Burberry. These companies target affluent consumers, who are more likely to continue spending than other income groups.

I would also buy shares in retailer Marks & Spencer’s. This company also targets higher-income consumers and has the flexibility to cut costs if margins come under significant pressure. 

Still, none of these businesses will be immune from some of the challenges outlined above, so I will be keeping an eye on risk factors such as rising prices going forward. 

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Burberry. 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.

The Warren Buffett method of investing is easily described. To me, it means buying shares in good businesses to hold for the long term. It means focusing on the process of compounding. And prioritising the quality of an enterprise over how cheaply the shares are valuing it. But buying the quality as cheaply as possible, often paying a fair price rather than a cheap one.

Potential exponential growth

Buffett has been compounding gains at the rate of around 20% a year, on average, for decades. And running the calculations on a compound annual growth rate of 20% reveals how overall growth is exponential. The exercise goes a long way to explaining why he’s worth billions.

My plan aims to generate a £700-a-month income from dividends. But not right away. First, my portfolio will be in the building stage. And I’ll reinvest all dividend income to help keep the process of compounding going.

And to work out how much capital is needed to generate that kind of income, the FTSE 100 index is useful. Analysts expect the index to yield about 4.1% in dividends in 2022. So I’ll assume that level of dividend return each year is achievable if I simply invest money in a low-cost index tracker fund following the Footsie.

My calculation tells me £210,000 would deliver an annual dividend income of £8,400. And that works out at £700 a month for me to use.

But getting to the £210,000 in the first place is where the Buffett method comes in. Particularly on an average salary. For example, one of the main elements of research I’d use when judging the quality of a business is whether it has the potential to grow.

Compounding within businesses

That’s because Buffett’s focus on compounding means he’s always looking for the businesses to do the heavy lifting by building on its own gains in earnings. Compounding the value of a share portfolio is one thing, but compounding taking place within a business is another.

And that’s why he holds on to the shares of what he describes as “wonderful” businesses for a long time. As their earnings grow, their dividends and share prices tend to grow to reflect the progress.

However, that doesn’t always happen because operational challenges can arrive for any company causing the business to underperform and its shareholders to lose money.

But I think the recent bear market in tech and growth stocks has thrown up some great opportunities. I’ve noticed, for example, that stocks with a high element of value have been springing into life lately, suggesting a mass investor rotation away from over-priced stocks and into those with better value.

And, to me, this is a great environment for applying the Buffett method of buying quality at a fair price.

Outcomes are not certain or guaranteed and I could even lose money, but I’m investing as much as I can every month in stocks and shares right now. And I’m aiming to compound my way to the possibility of taking £700 a month in dividend income later.

Kevin Godbold 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.

I’m looking for high-yield stocks to buy for my Stocks and Shares ISA before this year’s ISA deadline on 5 April. Today I’m going to consider three shares with 5% dividend yields. I reckon all three of these stocks have the potential to deliver strong growth from current levels.

A cheap FTSE 100 share?

My first pick is television group ITV (LSE: ITV). ITV’s share price has risen by around 10% over the last year, but I still think this business is probably too cheap.

City analysts expect ITV’s earnings to have returned to 2019 levels in 2021, with further growth expected in 2022. These estimates price the stock on just eight times forecast earnings. Dividends are making a comeback, too. Forecasts suggest a payout of 3.6p per share for 2021, rising to 5.9p in 2022 — that would give a 5% dividend yield.

Streaming television represents a risk to ITV’s ad-funded broadcasting business. But the group is working hard to turn streaming into an opportunity. The ITV Studios business produces programmes for ITV and other channels. By 2026, 25% of sales are expected to come from streamers.

I’m holding my ITV shares in a top-rated stocks and shares ISA. I may buy more before 5 April.

This business keeps vans on the road

Redde Northgate (LSE: REDD) probably isn’t a household name for you unless you run a fleet of vans. Northgate is one of the largest van hire companies in the UK and Spain, with a fleet of 120,000 owned and leased vehicles. The group also looks after over 600,000 vehicles operated by its clients.

Northgate’s merger with accident management specialist Redde in early 2020 means that the combined group now offers a full range of mobility services, including leasing, fleet management, repair, and resale.

One unusual aspect of this situation is that Redde Northgate has benefited from the global shortage of new vehicles. Profit margins have risen and resale values on used vans have been very strong. The main risk I can see is that when market conditions return to normal, we could see profits slump.

So far there’s no sign of this. I’m reassured by Redde Northgate’s recent performance and recently added the shares to my portfolio. Trading on just nine times forecast earnings, with a 5% dividend yield, they offer good value in my opinion.

A 2-for-1 stock for my Stocks and Shares ISA?

When a company splits itself into two, I’ve found it can often create opportunities for investors. The two separate companies are often valued more highly than they were as one. Sometimes they perform better, too.

I think that is what could happen at CMC Markets (LSE: CMCX). This online financial trading firm is thinking about separating its UK stockbroking business into a new company.

The risk, of course, is that sometimes a company splits itself to get rid of a bad business. One problem with CMC is that its profits can be volatile, depending on market conditions. I’m also not sure how profitable the stockbroking business might be on its own.

However, I’m comfortable backing the judgement of CMC founder Lord Cruddas, who still owns more than 55% of the business.

CMC’s earnings are expected to recover over the next year, pricing the shares on just nine times forecast earnings, with a 5.5% dividend yield. I’d be happy to buy at this level.

Roland Head owns ITV and Redde Northgate plc. The Motley Fool UK has recommended ITV. 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.

I like idea of investing in dividend shares as a way to generate passive income streams. But what if I had no money to start investing? I actually think I could still begin, by putting aside a small amount of money each day. Let us say I wanted to begin with £2.50 a day. Here is the passive income plan I would use.

Focus on the goal

Putting aside a small amount of money might not help me generate a lot of income any time soon. But it could get me into the discipline of regular investment and also lead me to a deeper understanding of how dividend shares actually work in practice. Later, if I have more spare money, I could use that understanding to scale up my efforts – and hopefully my income too.

So I would not begin with the mindset that £2.50 a day is too little to be worth investing. Instead, I would adopt the mindset that regular saving of any amount is the first step on my passive income journey.

Figure out how to buy shares

Simple as it sounds, buying shares does take some effort. For example, how could I actually buy them? Typically, I need to deal with a stockbroker – but first I may need to set up an account.

Millions of private investors own dividend shares already, so I do not think the process is particularly complicated. But I would want to do some research, for example into setting up a share-dealing account. It would take time for my daily £2.50 to add up to a big enough sum to make it worthwhile to start investing. I could use this time to get to grips with the practicalities of how I can trade shares once I am ready to do so.

Putting my passive income plan into action

Even among the ranks of dividend shares, there are many different types. For example, some pay a high dividend relative to their share price but are growing the dividend only slowly, like Imperial Brands and British American Tobacco. Others offer a lower dividend yield but the dividend is growing fast, like Judges Scientific and Halma.

Deciding what I want to focus on matters. £2.50 a day adds up to about £912 in a year. If I invest that in shares yielding 7.9%, like Imperial, my income the following year would hopefully be around £72. If I invest it in shares yielding 0.8%, such as Halma, my expected income would be only about £7.30.

But today’s yield is not necessarily indicative of what a company may pay in dividends down the line. For example, Imperial’s exposure to cigarettes at a time when smoking is becoming less popular could damage its revenues and profits. It already slashed its dividend two years ago and may do the same again in future. On that point, no company’s dividends are ever guaranteed, so I would reduce my risk by spreading my portfolio across a variety of companies and business areas.

Christopher Ruane owns shares in British American Tobacco and Imperial Brands. The Motley Fool UK has recommended British American Tobacco, Halma, Imperial Brands, and Judges Scientific. 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.

I’ve been looking for the best penny stocks to buy, and here are two that I’m thinking of adding to my portfolio today.

Toasting a recovery stock

Revenues are bouncing back encouragingly at Marston’s (LSE: MARS) following the shock of Covid-19 lockdowns. Like-for-like sales were up 1.3% in the eight weeks to 27 November, latest financials showed. I expect trading momentum to steadily pick up too as concerns over the pandemic recede.

Don’t think that Marston’s is just a great buy for the post-pandemic rebound, though. As a long-term investor, I’m encouraged by data showing that Brits have been spending a greater proportion of their salaries on eating and drinking out in recent years. It’s a trend that recent studies suggest remains very healthy.

My main concern for Marston’s looking ahead is the prospect of soaring beverage costs. Beer giant Heineken has just warned that prices for its fizzy product could rise to reflect a 15% rise in costs. Pub operators will either have to absorb this higher cost and watch margins come under pressure, or they’ll pass these increases onto the customer and risk a revenues slump.

Too cheap for me to miss?

That being said, at current prices, I still think Marston’s shares could be too cheap for me to miss. The business is expected to bounce back into profits in this financial year (to September 2022). This leaves the penny stock trading on a forward price-to-earnings ratio of 10.8 times.

I’d also buy Marston’s because its dividends could be about to explode again. Marston’s paid dividends well above the market average before Covid-19 forced it to cease shareholder payments altogether. And City analysts anticipate that the company’s expected return to profit this year will also result in an immediate return to dividend payments.

A 0.7p per share dividend is forecast for financial 2022, resulting in a modest 0.8% yield. The expected yield leaps to 2.3% for next year, though, thanks to a predicted 1.9p dividend. Like all forecasts, these could change based on future developments and are not something to rely on. But I think Marston’s could prove a great buy to add potentially strong earnings and dividend growth to my portfolio.

A penny stock for the strong jobs market

Staffline Group (LSE: STAF) might not have things all its own way if the domestic economy really starts to struggle. But right now the penny stock — which provides recruitment and training services to business — is doing a roaring trade thanks to the buoyant jobs market. Full-year gross profits at Staffline rose 11% in 2021.

Latest signals show that job hunting activity in Britain continues to strengthen, too. New data from Ipsos shows that almost half of all workers have searched for new employment in the past three months. The cost of living crisis suggests that the number could keep climbing as well as people seek better pay.

Fellow recruiter Hays saw like-for-like fees in the UK and Ireland leap 33% between October and December. And permanent hirings here rose 69%, illustrating the strength of business confidence recently. This gives me confidence that Staffline could continue to deliver meaty profits growth. It’s one of several top growth stocks I’m considering buying today.

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

Here’s a selection of top dividend stocks that I’m tempted to buy today.

#1: Safe as houses

The cost of renting residential property in the UK continues to soar. According to the Office for National Statistics, tenant costs jumped 2% in the year to January. This was the fastest rate of growth for five years. It’s my opinion that rental levels will keep rising too given the worsening shortage of available properties.

I wouldn’t invest in buy-to-let to play this favourable market though. I’d invest in Residential Secure Income instead. Not only would this allow me to avoid the huge upfront costs and increasing regulatory burden that buy-to-let brings. This particular UK share also sports a huge 4.8% yield today. I’d buy it even though demand for rental properties could slip if homebuilding rates for buyers leap as planned.

#2: Ship-shape

The costs of Storm Eunice to Britain’s insurers threaten to be colossal. Record provisional gusts of 122 miles per hour have caused massive damage that could take a big bite out of profits at the likes of FTSE 100-quoted Admiral Group. But I still expect this particular income stock to pay big dividends this year (City estimates currently create a 5.8% yield).

Admiral has a rock-solid balance sheet that should help it withstand any significant cost hit and deliver more hefty shareholder payouts. Its Solvency II ratio sat at a mighty 209% as of June, latest financials showed. I think Admiral could be a great long-term buy too as it expands rapidly in overseas territories.

#3: A golden dividend stock to buy

Gold prices continue to be swept higher as concerns over the Ukraine crisis grow and inflation hits multi-decade highs in major economies. The precious metal rose to eight-month peaks above $1,900 per ounce late last week and it’s a whisker away from hitting fresh record highs. I’m thinking of buying gold producer Centamin to capitalise on the bright outlook for metal prices.

The downside to investing in gold shares is that mining is hugely-risky business. Production issues can hit revenues hard and long-term profits forecasts can go up in smoke if exploration work produces poor results. Still, I think this is a risk worth taking given Centamin’s strong operational record and the solid outlook for gold prices. This dividend stock carries a 5.1% yield right now.

#4: A great renewable energy stock

I’m also tempted to buy FTSE 100 energy producer SSE today, a stock that also yields 5.1%. As an income investor, I like this sort of dividend stock: the essential role of electricity production means that it can expect profits to remain robust in all weathers. This gives SSE the confidence to pay large dividends year after year.

I like SSE too because of its focus on renewable energy. Rising demand for low-carbon energy could make it a much better investment than energy producers that use fossil fuels. I’d buy SSE even though changing Ofgem regulations could hamper profits growth later down the line.

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