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There are lots of of dividend shares to select from within the UK inventory market. And regardless of share costs reaching a brand new document excessive this yr, there are nonetheless loads of chunky yields on provide.
Among the many most beneficiant proper now are Victrex (LSE:VCT) and Hansard International (LSE:HSD) shares, with payouts of 9.75% and 9.31% respectively. Which means for each £1,000, buyers can unlock a passive revenue of as much as £97.50 proper now.
Nevertheless, as all skilled buyers know, a excessive yield usually comes with quite a lot of threat. It will probably even be a warning sign {that a} dividend lower is on the horizon. So the query now turns into, are Victrex and Hansard capable of preserve their present payouts? Let’s discover.
Revenue from polymers
Beginning with Victrex, the high-performance polymer producer has had a tough journey in 2025, with its market-cap shrinking by round 43% since January.
Digging deeper, this downward trajectory’s considerably justified. Cyclical headwinds have dampened demand for its speciality merchandise, significantly inside high-margin sectors like healthcare. Whereas market situations have began to enhance, a much less beneficial product combine implies that revenue margins are nonetheless feeling the pinch.
Regardless of these challenges, shareholders proceed to obtain payouts, with dividends per share falling beneath underlying earnings per share. That’s an encouraging signal of sustainability. And with challenges in China beginning to be resolved, together with additional development in polymer volumes backed by a wholesome stability sheet, the corporate could possibly be close to the start of a profitable restoration.
Revenue from specialised financial savings
Turning subsequent to Hansard International, the supplier of specialist long-term financial savings and funding merchandise has fared a lot better than Victrex in 2025. Whereas it’s nonetheless lagging the broader inventory market, its shares have managed to stay comparatively steady together with its dividend.
However, its underlying efficiency has been a bit combined. Between June 2024 and this June, its belongings underneath administration have slipped barely from £1.15bn to £1.13bn. Profitability has additionally suffered, not helped by ongoing litigation defence spending regarding its now-closed Hansard Europe enterprise.
Nevertheless, on the identical time, efficiency from new purchasers and enterprise is definitely on the rise, climbing from £77.8m to £82.4m. Moreover, the agency’s solvency ratio additionally improved, signalling monetary energy and offering extra flexibility to proceed sustaining shareholder dividends.
The underside line
For each of those dividend shares, analysts count on payouts to be maintained within the quick time period. Nevertheless, with dividend protection margins tightening, extended delicate market situations leading to an absence of earnings development might in the end power a lower to emerge later down the road.
Out of those two companies, Victrex appears to be in a stronger place, in my view. So for buyers in search of a possible high-yield passive revenue alternative, this enterprise could possibly be price investigating additional. However there are additionally different, extra promising dividend shares I’ve received my eye on proper now.
