3 of the best dividend stocks I can buy yield over 6%

In my income portfolio, I aim to generate a total dividend yield of over FTSE 100 an average of 3.6%. Right now, I mean 5%, or more. Fortunately, the UK stock market has a well-deserved reputation for offering generous returns.

Here, I’ll look at three stocks with yields of 6% or more that I really like right now.

This money machine can still be cheap

FTSE 100 tobacco stocks Imperial Brands (LSE: IMB) has gained almost 30% so far this year. Investors seem to be buying into the turnaround under CEO Stefan Bomhard.

Stocks are not as cheap as they used to be. But I think Imperial’s 6.7% yield and strong cash flow support the current share price and leave room for further gains.

By refocusing the business on its top brands and controlling spending, Bomhard reduced debt and returned the business to earnings growth. Budget growth is expected to be around 5% in both fiscal years 2025 and 2026.

Admittedly, cigarette parts are not everyone’s cup of tea. Investors may also want to consider the long-term future of this business. But with core sales of over £9bn a year and annual profits of around £2.5bn, I think Imperial still offers good prospects as an investment worth considering.

Low risk yield of 7%?

As a major UK general insurer, Aviva‘s (LSE: AV) household name for products such as home and car insurance. The group also has joint operations in Canada and Ireland, as well as an associated property management business.

I agree that Aviva’s record of dividend growth has been poor in the past. There were cuts in 2013 and 2020, for example. However, I think the changes made by CEO Amanda Blanc mean that this is now a stronger and more efficient business.

Operating profit rose 9% to £1.5bn last year and the dividend was doubled by cash generation.

Aviva shares currently offer a forecast yield of 7.4%. Pay is expected to increase by 6% this year, which means a return of more than 13% is expected.

I think the shares look decently priced. If I didn’t already have UK insurance, I would add Aviva to my portfolio.

The turning point?

A television crew ITV (LSE: ITV) has long fallen out of favor with investors. But I think the business may have reached a turning point. Advertising costs are starting to stabilize, according to the company’s half-year results.

Meanwhile, the decline in content production caused by the Hollywood strikes and widespread cost-cutting is now starting to slip into the rearview mirror. I think the ITV Studios business should benefit.

Reassuringly, ITV has maintained its double-digit profit margins and solid earnings. Analysts expect adjusted earnings to rise 18% to 9.2p per share this year, as acquisitions continue. That’s enough profit to comfortably cover the 5p per share dividend.

These forecasts price the stock at a forward rate of nine earnings, with a tentative yield of 6.4%.

While I own some of its shares, ITV is not a stock I plan to hold forever. But right now, I’m holding on. I believe the stock can do well in the next 12-18 months.