Picture supply: Getty Pictures
When on the lookout for dividend shares to purchase, the large 9%+ yielders will usually catch the attention. However very like a type of discount all-you-can-eat buffets, they’re usually too good to be true. In different phrases, they’re traps.
Nevertheless, the next pair of dividend shares look strong to me. What’s extra, they’re not carrying measly 1%-2% yields. Each is providing a forecast dividend yield of 6.3%.
FTSE 100
The primary inventory is Aviva (LSE:AV.) from the FTSE 100. With greater than 25m prospects within the UK, Eire and Canada, the insurer possible wants no introduction. Over 7m UK prospects maintain two or extra insurance policies with Aviva.
As we will see, the share value has finished properly, roughly doubling in 5 years. But the forecast dividend yield nonetheless sits at a horny 6.3%.
After its £3.7bn acquisition of rival Direct Line, it’s now the UK’s largest motor and residential insurance coverage agency. And between 2025 and 2028, managements expects a compound annual development charge of 11% in working earnings per share.
For sure, this bodes properly for the dividend prospects, with the market anticipating a near-7% rise within the payout for FY26. Share buybacks are additionally set to renew this 12 months, which could possibly be supportive for the share value.
One inescapable reality right here although is that the insurance coverage market is aggressive, whereas a recession wouldn’t assist anybody, together with Aviva.
However with the inventory buying and selling at an affordable 11 occasions earnings, and the dividend prospects wanting strong, I feel Aviva is price testing.
FTSE 250
Subsequent, now we have TBC Financial institution (LSE:TBCG) from the FTSE 250. This one might be much less acquainted, because it’s one of many two massive banks in Georgia. That’s the nation within the Caucasus, between Europe and Asia, not the US state.
This geography helps clarify why the inventory has rocketed practically 250% in 5 years. As commerce routes via Russia grew to become restricted after the warfare, Georgia emerged as a significant commerce hub connecting China and Central Asia to Europe.
It has moreover benefitted from expert migrants arriving from Russia, in addition to a vacationer growth. TBC additionally has a powerful presence in Uzbekistan, one other high-growth financial system that loved 7.7% GDP development in 2025.
This helped the lender develop working revenue by 17% in Q3, and month-to-month energetic prospects by 14% to 7.46m. In the meantime, the financial institution’s return on fairness is persistently within the mid-20s, which is above the business common for European and rising market banks.
The primary threat I see is heightened political tensions, which resulted in much less tourism revenues in early 2025. If this flares up once more, it might harm funding within the nation, leading to decrease lending exercise.
As issues stand although, the financial institution seems properly set as much as proceed rising. Tourism has been bouncing again, serving to the Georgian financial system develop 7.5% final 12 months. The UN initiatives development of 5.4% in 2026, and as much as 6% in Uzbekistan.
The inventory is buying and selling very cheaply at simply 5.5 occasions ahead earnings, whereas boasting a forecast 6.3% yield. The payout is roofed nearly 3 times by anticipated earnings, providing a major margin of security.
With TBC inventory down 13% since July, I reckon this can be a dip-buying alternative price taking critically for passive revenue.
