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Investing in UK dividend shares can never deliver a guaranteed second income. However, holding a portfolio of stocks — whether through direct ownership, or via an investment trust or exchange-traded fund (ETF) — can substantially reduce the risk of dividend disappointment.
A mix of the following London Stock Exchange assets would currently give investors exposure to 169 different dividend-paying companies. And if broker forecasts are accurate, a £15,000 lump sum invested equally across them will provide a £1,185 passive income this year alone.
Here’s why I feel they’re all worthy of consideration.
The dividend share
FTSE 100-listed M&G generates enormous amounts of cash it pays out to investors through a large and growing dividend.
For 2025, its dividend yield is 7.9%, more than double the Footsie average of 3.4%. This is underpinned by the company’s robust balance sheet — its 223% Solvency II capital ratio as of December gives the company ample scope to absorb shocks while still paying a market-beating dividend.
Reflecting this, M&G formally implemented a progressive dividend policy earlier this year. Over time, I’m optimistic this will create great returns as demand grows in the retirement and asset management sectors.
Be mindful, however, that the business will have to paddle hard given high levels of market competition.
The dividend trust
With a focus on fast-growing markets, the JPMorgan Asia Growth & Income (LSE:JAGI) aims to provide better-than-normal returns. Today its forward dividend yield is 5.5%.
On the one hand, investing in emerging markets can sometimes be a wild ride. Political and economic turbulence can be common, impacting regional profitability. But then the long-term rewards can also be considerable thanks to breakneck population growth and increasing disposable incomes.
In total, this trust holds shares in 68 companies including Taiwan Semiconductor Manufacturing Company, Alibaba, HDFC Bank and Samsung. And it’s focused on Asia Pacific’s regional heavyweights China, India, Taiwan and South Korea.
As for dividends, the trust’s board voted in March to raise its enhanced dividend to between 1% and 1.5% of net asset value (NAV) per quarter. This could significantly boost the amount of long-term dividend income it provides.
The dividend ETF
The Global X SuperDividend ETF (LSE:SDIP) does exactly what it says on the tin. What makes it so good is its focus on businesses with turbocharged dividend yields — more specifically, it “invests in 100 of the highest dividend yielding equity securities in the world.”
Another benefit is that it pays dividends out monthly, allowing investors the chance to reinvest their cash earlier for improved compound returns.
I like the fund because it’s well diversified by geography and sector. The US is currently its largest single region, though this still accounts for less than 25% of its portfolio. And in terms of industry, well represented areas include financial services, energy, real estate and basic materials.
This GlobalX fund has greater exposure to cyclical sectors than some other ETFs, however. This could cause it to underperform its peers during economic downturns.
But I believe the positives of holding it still make it worth considering. The dividend yield here is an enormous 10.2%.
