This gives a UK share investor like me a wide selection of these income-boosting property stocks to choose from.

Passive income boosters

I think investing in ‘bricks and mortar’ stocks is a particularly good idea in this period of huge uncertainty. Broadly speaking, rental incomes tend to be stable at all points of the economic cycle. And because the broader property market appreciates in value over time, they’re a great choice for long-term investors, too.

REITs more specifically are set up to be an easy and profitable alternative to directly investing in property. Their status means they don’t have to pay corporation tax on profits and capital gains on their rental businesses. In exchange they are required to pay 90% of their annual earnings out by way of dividends.

Two REITs I already own

I’ve bought care home operator Target Healthcare REIT to boost the income I receive from my own portfolio.

Like any property stock, I don’t have control over what assets my capital is used to buy. And this creates additional risk. But I’m confident that soaring demand for specialist elderly living over the next decade will deliver terrific returns and healthy long-term passive income.

Tritax Big Box REIT is another great real estate stock I own. I bought the warehouse and distribution centre specialist to capitalise on changing shopper habits. The growth of e-commerce means the need for these sorts of properties is soaring.

This is another advantage of investing in property stocks like REITs. I have the opportunity to invest in areas of the property market I wouldn’t be able to touch otherwise.

Okay, tough economic conditions could strike demand for so-called big box properties in the near term. But over the next decade this is a market tipped for fast growth.

I’m confident both of these high dividend stocks will make me a healthy passive income. Target and Tritax’s dividend yields currently sit at 7.7% and 5.2% respectively.

… and one more on my shopping list

Residential Secure Income REIT (LSE: RESI) is another specialist property stock I’m considering buying.

This residential property share specialises in affordable shared ownership and retirement rental properties. This gives it access to two white-hot growth markets.

There are huge shortages of affordable homes in the UK. Weak housebuilding rates mean that this supply and demand imbalance looks set to last, too. So the prices Residential Secure Income asks for its properties can be expected to keep climbing.

I also like the REIT’s exposure to the rapidly expanding retirement property sector. This could deliver big returns as the general population gets older.

I think it’s a top buy despite the threat rising interest rates pose to homes sales in the immediate future. And especially as it offers great all-round value now.

The business currently offers a bulky 5.5% dividend yield. It also trades on a forward price-to-earnings (P/E) ratio of just 17.4 times, well below its historical average north of 20 times.

Residential Secure Income REIT

I think REITs can be a great way to secure a reliable second income. In exchange for certain tax advantages, these businesses are obligated to pay 90% of annual profits out in the form of dividends.

Residential Secure Income REIT (LSE: RESI) is one such stock on my radar today. This UK share invests in residential rental properties and shared ownership homes. As a consequence I expect profits to boom as private rents charge higher.

To illustrate this point, estate agent Hamptons thinks rent increases will outpace home price rises over the next four years. It reckons tenant costs will rise 5% in both 2023 and 2024.

Rising construction costs pose a danger to Residential Secure Income REIT’s earnings. But I think the prospect of prolonged and powerful rents growth, driven by Britain’s long-running accommodation shortage, still makes it a great buy in September.

The real estate stock carries a tasty 4.7% dividend yield for the financial year ending September 2022. The dial improves to 4.8% for the upcoming year too.

Vodafone Group

Huge uncertainty surrounds Vodafone Group (LSE: VOD) as activist investor Cevian Capital pushes for change. A range of revolutionary measures, from significant boardroom changes to major consolidation in several European markets, are all reportedly on Cevian’s ‘to do’ list for the telecoms firm.

This could give Vodafone’s share price a welcome jolt after years of underperformance. But the scale the overhaul Cevian is planning also creates extra risks for shareholders.

Consolidation, for example, brings a range of dangers that could erode shareholder value. In fact, a rush for mergers and acquisitions in recent times raises raises the threat of Vodafone paying over the odds to expand.

That being said, there are still plenty of reasons to be optimistic about the FTSE 100 firm. It’s rapidly expanding its position in fast-growing areas like 5G and full-fibre broadband.

Vodafone also has a large footprint in Africa where it provides telecoms and mobile money services to around 238m customers. Africa is widely tipped to be the fastest-growing telecoms market in the world over the next two decades thanks to climbing personal wealth levels and low product penetration.

I especially like Vodafone because of its credentials as an income stock. Its lofty position in the ultra-defensive telecoms sector means that it should deliver solid dividend income during good times and bad.

The company is also a mighty cash generator. As well as giving it the means to invest in its operations for growth, this gives it the financial headroom to dole out large dividend payments year after year.

Speaking of which, Vodafone currently carries a mighty 6.7% dividend yield for this financial year (to March 2023).

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Residential Secure Income REIT 

What it does: Residential Secure Income REIT invests in residential rental properties and shared ownership homes.

By Royston Wild. The economic outlook remains extremely uncertain right now. It’s why I think buying classic defensive stocks, like residential property rentals business Residential Secure Income REIT (LSE: RESI), is still an attractive idea. 

But don’t think of this UK share as simply a reliable share to own in difficult times. A widening supply and demand imbalance means that rental income at the real estate investment trust (REIT) looks set to soar. 

This explains why City analysts expect earnings to rise 20% this fiscal year (to September 2022). They predict an 8% bottom-line increase for next year, too. 

Data from Hamptons shows that rent growth in the UK remains super strong despite deteriorating economic conditions. Average rents rose 8.3% year on year in August. Last month’s increase was also the sixth largest yearly increase over the past decade. 

Rising interest rates pose a threat to Residential Secure Income’s shared ownership operations. However, I believe the prospect of a long-running shortage of rental homes still makes these shares a top buy for investors. 

Royston Wild does not own shares in Residential Secure Income REIT. 

Scottish Mortgage Investment Trust 

What it does: SMT is an investment manager primarily trading consumer, healthcare and technology stocks.

By Hamish Cassidy. The Scottish Mortgage share price has had a rough year so far, falling 32% since January. However, the stock has been steadily rising since June, and I think it’s set to climb higher this September. 

The company’s FY22 results reported £12.5bn in total assets. Exposure to the tech sector increased, now accounting for 25% of SMT’s portfolio. With tech giants such as Tesla and Nvidia gaining strong momentum last month, I think September looks hopeful.

Consumer spending has dropped due to the cost-of-living crisis. SMT has felt the effects of this, given that consumer discretionary stocks hold the majority of its portfolio at 33.5%. However, a strong turnaround in cash inflows from financing (increasing £1.2bn) suggests SMT can excel through the remainder of this year. 

I think the fund is very cheap at 880p. The stock looks like a great long-term addition to my September portfolio.

Hamish Cassidy owns shares in Scottish Mortgage Investment Trust.

Imperial Brands

What it does: Imperial Brands is a consumer goods company selling a range of cigarettes, fine cut and smokeless tobaccos and papers

By Paul Summers: Imperial Brands (LSE:IMB) has had a stellar year relative to most UK stocks. Not that this is all that surprising. Thanks to the addictive nature of what it sells, it was only a matter of time before even growth-focused investors saw it as a great option for parking their cash while the economic clouds pass.

I wonder if there could be more gains ahead. After all, the shares still look cheap at seven times forecast earnings. A 7.4% dividend yield is also enticing considering just how high inflation is expected to rise over the next few months.

There’s clearly still risk here. Cigarette volumes are in decline and regulators are never far away. We could also see some profit taking at some point. 

So long as I spread my cash around other sectors, however, I reckon Imperial will remain one of the best defensive shares around to buy.

Paul Summers has no position in Imperial Brands.

Diploma

What it does: Diploma is a distributor of industrial parts specialising in seals, controls, and healthcare equipment.

By Stephen Wright. In my view, Diploma (LSE:DPML) is one of the best UK stocks to buy at any time. The underlying business generates strong returns and has a significant advantage over its competitors.

One of the things I love about Diploma is the fact that it doesn’t have factories and expensive plants to maintain. This is because it distributes industrial components, rather than manufacturing them.

As a result, the business generates significant amounts of cash. 92% of the cash the business brings in becomes free cash available to the company.

This is an attractive business, but it can’t be easily emulated. Diploma’s scale and the size of its inventory give it an advantage over the competition.

Its customers know that Diploma can likely get parts to them quickly and more efficiently than anyone else. That’s what sets the business apart and means that its cash flows are — in my view — likely to prove durable.

Stephen Wright does not own shares in Diploma.

BT

What it does: BT is a UK-based multinational telecoms company operating in over 180 countries.

By Dylan Hood. Rising inflation and interest rates have weighed down on stock market valuations. BT (LSE:BT-A) shares have fallen 9% year to date, and over 20% in the past six months because of this. However, when I look at BT’s underlying business, not much has changed.

The group reported a small drop in profits in its Q1 FY23 results, however, in my opinion investors overreacted to this news. The firm is still on track with its Openreach roll out, which is now in over 7m homes, and its 5G network now covers over half the UK. In addition to this, the stock trades at a much lower price-to-earnings ratio (12 compared to 20) than its biggest competitor, Vodafone. BT’s asset-rich nature also means that it can act as a hedge against inflation.

Considering all of these factors, I think that BT shares looks like they could be a solid buy for my portfolio in September.

Dylan Hood does not own shares in BT

InterContinental Hotels Group

What it does: IHG is a hospitality company that owns a number of hotel brands including InterContinental, Holiday Inn, and Kimpton.

By Edward Sheldon, CFA. There are two main reasons I’ve chosen InterContinental Hotels Group (LSE: IHG) — a travel stock — as my top pick this month.

The first is that right now, we’re seeing a massive shift in the way consumers spend their money. Instead of buying goods, like they did during the pandemic, consumers are now spending their money on services. And the travel industry is benefitting. This is illustrated by IHG’s recent H1 results. For the six months to 30 June, revenue was up 53% year on year.

The second is that the company has pricing power due to its strong brands. The ability to raise prices should help it offset inflation.

The big risk to my investment thesis is that consumer spending slows down significantly due to the cost-of-living crisis. This could have a negative impact on sales.

However, with the shares trading at just 18 times next year’s earnings forecast, I think the risk/reward proposition here to buy into is quite attractive at present.

Edward Sheldon has no position in InterContinental Hotels Group.

Hikma Pharmaceuticals

What it does: Hikma Pharmaceuticals focuses on manufacturing and selling generic, branded, injectable, and in-licensed medicines.

By Zaven Boyrazian. Hikma Pharmaceuticals (LSE:HIK) is a world-leading generics pharmaceutical business. The firm focuses on recreating existing drugs and treatments that have come off-patent to improve availability and affordability for patients.

Lately, the stock has taken a bit of beating on fears of rising competition in the United States, causing profitability to suffer. In fact, over the last 12 months, the share price has fallen by almost 50%.

However, management is in the process of ramping up investments into its high-margin injectables business. And with its branded products continuing to deliver double-digit profit growth offsetting the recent losses, I feel investors may have overreacted.

Demand for healthcare isn’t likely to disappear any time soon. Even during a recession, when consumer spending is dropping, access to medicine is still a top priority for most patients. Therefore, I feel the recent drop in the share price presents my portfolio with a lucrative buying opportunity this month.

Zaven Boyrazian does not own shares in Hikma Pharmaceuticals.

Lloyds Banking Group

What it does: Lloyds is a FTSE 100 banking group and one of the UK’s largest mortgage lenders. 

By Charlie Keough. My top British stock for September is Lloyds (LSE: LLOY). The stock has been pushed down this year as inflationary pressures have weighed on investor sentiment. And trading for below 50p, I see real value in the Lloyds share price.  

Firstly, a hike in interest rates will benefit the business. With the Bank of England recently setting rates at 1.75%, the firm will be able to charge customers more when borrowing. With the Bank looking like they could hike rates further, this is good news for Lloyds. 

On top of this, the stock also offers a higher-than-average dividend yield when compared to the FTSE 100. 

Lloyds could suffer from a slowdown in the housing market. After surging in recent times, the market has hit the brakes. As a mortgage lender, this could spell trouble. 

However, the business has made moves to diversify such as through its rental venture, Citra Living. And with a strong dividend and long-term outlook, I’d buy some shares today.  

Charlie Keough does not own shares in Lloyds.

Persimmon

What it does: Persimmon is engaged in the homebuilding business. It operates under three different brands across the entire United Kingdom.

By Andrew Woods. The shares in Persimmon (LSE:PSN) have been volatile of late, down 31% in the last three months.

In a report for the six months to 30 June, the firm reiterated that it was targeting completions between 14,500 and 15,000 for 2022. In addition, it stated that there was still strong demand for houses, reporting a forward-sales rate of 90%.

However, first-half revenue and underlying operating profit declined by 8.2% and 8.8%, respectively.

There’s also the issue of rising interest rates. This is currently set at 1.75% in the UK and may climb higher. What this potentially means is that it becomes more expensive for customers to take out mortgages. This may lead to a slowdown in the housing market and that could be bad news for Persimmon.

Nevertheless, the company has total cash of £660m and debt of just £8.3m. This gives me hope that it could easily weather any storm that comes its way in the short term.

Andrew Woods has no position in Persimmon.

ITV

What it does: ITV makes and distributes content across television and digital platforms, as well as providing facilities for third party content creators.

By Christopher Ruane. I thought the interim results released by ITV (LSE: ITV) in July made for good reading. Total revenue grew 16% compared to the same period the prior year, while external revenue was up 8% and statutory earnings per share doubled. The company affirmed its commitment to an annual dividend of at least 5p per share, which means the prospective dividend yield is now around 7.8%.

Despite that, the ITV share price has continued to drift. It now sits 45% below where it was a year ago.

Long-term structural decline in television audiences remains a threat to both revenues and profits at the business. However, ITV is in growth mode and the digital world offers lots of room for expansion. It continues to generate substantial free cash flows and I expect that to continue in coming years. I would happily buy more ITV shares to my portfolio in September.

Christopher Ruane owns shares in ITV.

Unilever

What it does: Unilever is a fast-moving consumer goods conglomerate that produces beauty products, personal care, foods, and cleaning agents. Its brands include Lynx, Ben & Jerry’s, Dove, and many more.

By John Choong. Consumers are always going to need household products, even when prices are at an all-time high. This is why I think Unilever (LSE: ULVR) is a healthy choice for my portfolio. The demand inelasticity surrounding the majority of its products means that sales figures are unlikely to get hit too badly.

This was reflected in its most recent earnings report where CEO Alan Jope revised the company’s earnings guidance upwards. The FTSE 100 giant now expects underlying sales growth for 2022 to top 6.5%, which is excellent news given the decline in retail sales data. Additionally, the conglomerate’s geographical diversity should protect its top line from declining British and European sales figures.

Therefore, Unilever shares would serve my portfolio as a defensive play as the UK enters into a recession. Its price target of £40.81 doesn’t provide much of an upside. However, it brings me a little bit more security knowing that the likelihood of my money declining by double-digit percentages is low.

John Choong has no position in Unilever

It’s my belief that the dividend yields of many UK shares are too good to miss. The sinking stock market has sent yields across the London Stock Exchange through the roof.

However, I need to consider carefully where to invest my money as the global economy stalls. Worsening conditions could derail the dividend forecasts of many income stocks.

These are difficult times for investors. As the head of BlackRock Larry Fink recently commented:

“the first half of 2022 brought an investment environment that we have not seen in decades. Investors are simultaneously navigating high inflation, rising rates and the worst start to the year for both stocks and bonds in half a century, with global equity and fixed income indexes down 20% and 10% respectively.”

A high-dividend stock to buy

With this in mind let’s take a look at residential lettings business Residential Secure Income REIT (LSE: REIT).

Right now the business carries a healthy 5% forward dividend yield. It’s a reading that is more than double the 2% yield on offer from industry rival Grainger, for instance, and much higher than the 3.5% average that FTSE 100 shares currently boast.

The residential rentals market is one of safest places that I can park my cash right now. Spending on accommodation is something almost all of us will continue doing even as economic conditions worsen. As a consequence, profits at companies like Residential Secure Income should remain quite stable.

Furthermore, with rents soaring in the UK, I can expect to make a decent return on my money if I invest it the right way. Estate agency Hamptons believes tenants will pay £63bn worth of rent in 2022, a new all-time high. This is almost double the £32.1bn paid out in 2009.

Residential Secure Income’s earnings prospects could take a hit if it fails to secure decent acquisitions in the coming years. But the rate at which rents are tipped to keep soaring fills me with confidence.

Rocketing rents

Rents in the UK have surged due to a combination of falling homes supply and rocketing demand. And the need for private rented homes looks set to keep surging due to demographic changes, a positive signal for landlords.

Analysts at Capital Economics for instance believe the key 15-to-24-year-old population will grow by around 866,000 (or 11%) by 2030.

Residential Secure Income REIT then looks in great shape to deliver solid long-term profits growth. And this is good news for income investors as its status as a real estate investment trust requires it to pay nine-tenths of yearly earnings out by way of dividends.

Residential properties

As a quick introduction, Residential is a real estate investment trust (REIT). It invests in quality, affordable, residential housing across the country. It currently has a portfolio of over £300m and has a 20-year track record of investments and returns.

It is worth noting that REITs are designed to reward shareholders through dividend payments. In fact, they must return 90% of profits to shareholders. I already own a number of REITs as part of my portfolio.

So what’s happening with Residential shares currently? Well, as I write, the shares are trading for 104p, which is the same price as at this time last year. The shares have pulled back 3% from 108p since the turn of the year to current levels, however.

The best shares to buy have risks too

The risk of any divided stock is that dividends are never guaranteed. They can be cancelled at the discretion of the business at any time. This could be for a number of reasons, such as poor performance, a recession, or an extreme event like a pandemic.

The current cost-of-living crisis poses a threat to Residential’s performance, in my opinion. It rents homes out to people and with the current macroeconomic issues, soaring costs have caused many people to tighten their belts. Some are struggling to pay for essentials such as rent, energy bills, and food. If collecting rent becomes tougher, performance and returns could be affected.

The bull case and what I’m doing now

So to the positives. I believe Residential has defensive characteristics. Firstly, a home is essential for any person. Secondly, here in the UK, the demand for homes is massively outstripping supply. In fact, leased residential buildings is one of the most defensive real estate sectors available currently.

So to the returns then. Residential shares offer a dividend yield of just over 5% currently. This is higher than the FTSE 100 average, which is 3%-4%. It also pays a quarterly dividend and aims to offer an 8% annual return to its investors.

Next, Residential shares look good value for money currently too on a price-to-earnings ratio of just over 11. The general consensus is that a ratio below 15 represents value for money.

Finally, Residential’s performance track record is positive. Now, I am aware that past performance is not a guarantee of the future, however. But, performance and returns are linked as the former underpins the latter. Looking back, I can see Residential has increased revenue and profit for the past four years in a row.

Overall I believe Residential Secure Income is one of the best shares to buy now for consistent returns. The shares look attractively priced, and the fact it operates in a defensive sector is a bonus. I will be adding the shares to my holdings imminently.

Here are two big-yielding dividend stocks on my radar today. I expect both to deliver big shareholder payouts in the near term and beyond.

Euro hero

Tritax Eurobox (LSE: EBOX) is a dividend stock whose profits are sensitive to economic conditions. Its retail tenants could struggle to pay the rent if business dries up. Still, in this period of high inflation, I think it’s a great stock to buy today.

You see, property businesses like this tend to raise their rental income in line with inflation. The impact of soaring prices on the bottom line can therefore be mitigated. So Tritax Eurobox doesn’t have to panic that last week the Eurozone Commission hiked its 2022 inflation forecasts for the region to 7.6% from 6.1%.

This income stock operates ‘big box’ warehousing and distribution assets in major European economies such as Germany, Italy and Belgium. I’m expecting it to deliver excellent long-term returns as the growth of e-commerce increases demand for its buildings.

Today, Tritax Eurobox carries a healthy 5.1% dividend yield for the financial year to September. This figure grows to 5.6% for next year too. I’d buy it even though a lack of decent acquisition prospects could damage its growth plans.

Another top property stock

Keeping with the theme of property stocks, I’m considering buying Residential Secure Income REIT (LSE: RESI) shares today.

Like Tritax Eurobox, it’s a great way to protect share investors from high inflation. What’s more, its ultra-defensive operations create excellent profits stability in good times and bad. Spending on accommodation doesn’t fall even when broader consumer expenditure weakens.

But the biggest attraction of Residential Secure Income today is the rate at which rents in the UK continue to soar. Property listing business Rightmove says that average rents outside London rose 11.8% in June, the biggest increase for 16 years.

The average rent excluding London now sits at a record £1,126 per month. I expect them to continue rising strongly too as the supply of properties should continue lagging demand.

Bright dividend forecasts

Finally, I like Residential Secure Income because of the benefits it brings to dividend investors. As a real estate investment trust (or REIT) it is obliged to pay at least 90% of annual profits to shareholders in the form of dividends.

City analysts expect the business to raise annual dividends in the short-to-medium term in line with earnings. This means the dividend stock sports handsome dividend yields of 5.1% and 5.2% for the financial years to September 2022 and 2023 respectively.

Residential Secure Income could see the value of its property sink in the event of a housing market crash. But, all things considered, I think the benefits of owning this UK share far outweigh the risks.

This means a lot of top stocks are unfairly overlooked. There are plenty of top small-cap stocks I think could thrive, even as recessionary threats grow. Here are two I’m thinking of buying right now.

Residential Secure Income REIT

Earnings at Residential Secure Income REIT (LSE: RESI) are likely to remain rock-solid even as the economy sinks. Having a roof over our heads is one of life’s non-negotiable, whatever happens.

Owning property stocks is also a good idea during this period of high inflation. This is because the rents they can charge tend to increase along with broader prices.

Rents at Residential Secure Income could also rise spectacularly as homebuyer affordability comes under pressure, boosting demand for rental properties even further. Data from estate agent Hamptons shows that recent interest rate rises mean renting a property is now cheaper than buying. That’s despite average rents in the UK continuing to rise at double-digit percentages.

Hamptons estimates that each further 0.25% rise in the base rate will increase the cost of buying over renting by £41 a month too. Projections are based on a typical first-time buyer with a 10% deposit, it says.

Commercial landlords like Residential Secure Income are always vulnerable to possible changes in industry regulations. Profits could be hit if, say, new regulations drive up the cost of property maintenance.

However, it’s my opinion that the safe-haven qualities of this particular stock outweigh the risks of tighter regulations. I’d also buy it because of its chunky 5% dividend yield.

Begbies Traynor Group

Worsening economic conditions also make Begbies Traynor Group (LSE: BEG) an attractive stock to buy today.

Tragically, the number of businesses experiencing significant financial distress increases when times get tough. Latest data from accounting firm Mazars shows the number of corporate insolvencies rose by almost a third in the last three months, to around 6,000.

The rate at which companies are hitting the wall is accelerating sharply too. Mazars says that 1,817 filed for insolvency in May. This was up 79% year-on-year.

I expect trading at companies like Begbies Traynor to improve considerably as inflationary pressures rise. This particular small-cap is an insolvency practitioner and provider of other services to distressed companies.

Demand for its expertise is already soaring, boosted by the contribution of ongoing acquisition activity. Latest financials showed adjusted pre-tax profits up around 55% in the 12 months to April.

Of course, revenues at Begbies Traynor could dry up when economic conditions improve. But in these uncertain times I still think buying this safe-haven stock is a good idea to help protect my portfolio.

These top income stocks have all fallen in value recently. As a result I think they could be brilliant dip buys. Here’s why.

Persimmon

What it does: A nationwide housebuilder which sold 14,551 homes in 2021.
P/E ratio: 8.6 times
Dividend yield: 10.9%

Property developer Persimmon (LSE: PSN) offers one of the biggest dividend yields on the FTSE 100 today. The business has fallen in value as investors have fretted over the impact of interest rate rises on homes demand.

This is a threat that share pickers need to take seriously. But I’m encouraged that housing demand has remained rock-solid so far in 2022. Latest research from Nationwide in fact shows that house prices still rose a healthy 11.2% in May despite the cost-of-living crisis and interest rate hikes.

Evidence like this suggests that homes supply continues to lag the rate of demand. It’s a theme I expect to persist amid historically low interest rates and the probability that government will continue to support first-time buyers.

It’s my opinion that Persimmon remains a white-hot dividend stock for me to buy. And particularly as it still trades on a forward price-to-earnings (P/E) ratio of below 10 times.

Residential Secure Income REIT

What it does: A residential landlord with exposure to shared ownership and retirement property.
PEG ratio: 1
Dividend yield: 5.3%

A similar shortage of rental properties also makes Residential Secure Income REIT (LSE: RESI) an attractive share for me to buy today.

Amid a flood of new regulations, higher taxes and running costs, the number of private landlords in the UK has slumped in recent years. This in turn has propelled rent levels (and consequently profits at firms like Residential Secure Income) through the roof.

Latest data from HomeLet showed rent for the average new tenancy hit £1,091 a month in April. This was up 9.5% year-on-year. No wonder then that City analysts expect earnings at Residential Secure Income to soar 20% in this fiscal year alone.

It has fallen back into penny stock territory following recent market volatility. And as a result it trades on a price-to-earnings growth (PEG) ratio a fraction below the bargain benchmark of 1.

Now, the stock doesn’t have dividend yields as big as that of Persimmon. But one advantage it does have for income investors is that it’s classified as a real estate investment trust (or REIT). This means it has to distribute a minimum of 90% of annual profits to shareholders by way of dividends. I’d buy it even though a failure to secure acquisitions could hit its growth plans.

Motoring on

The general insurance sector is one that’s historically proven resilient even during recessions. It’s why I’m considering buying Direct Line Insurance Group (LSE: DLG) shares today.

Direct Line product lines include travel, home, pet, cycle, and a range of other insurances. But what I really like about the business is its titanic position in the motor insurance market.

Drivers are, of course, legally obligated to be insured when out on the road. And this provides Direct Line investors with an added layer of security. The FTSE 250 firm is the country’s third-biggest car insurance provider with a share of some 12%.

Intense competition poses a significant threat to insurance businesses today. But, fortunately for Direct Line, it has strong brand power that gives it a considerable advantage against this danger.

Inflation-beating dividend yields

City analysts believe Direct Line will continue growing earnings despite the deteriorating economy. They think profits will rise 5% and 10% in 2022 and 2023 respectively.

These forecasts leave Direct Line shares looking really cheap too. At 245p per share, the insurer trades on a rock-bottom forward price-to-earnings (P/E) ratio of 9.5 times.

What really grabs my attention though is Direct Line’s enormous dividend yields. The business is a formidable cash generator and this enables it to pay dividends far above the market average. Indeed, for 2022, Direct Line’s dividend yield sits at an enormous, inflation-beating 9.4%.

Another recession-proof stock to buy

Residential Secure Income REIT (LSE: RESI) doesn’t offer the same jaw-dropping yields as Direct Line. But at 5%, it still pays better than most FTSE 250 shares (the index’s average forward yield sits at 2.6%).

Residential Secure Income is a provider of private sector social housing and a player in the shared ownership sector. This, in my opinion, makes it a great stock to buy during recessionary times. Paying to have a roof over or heads is one of life’s non-negotiables.

Riding the rentals boom

In fact, a chronic shortage of rental homes mean that Residential Secure Income’s prospects are growing, despite the shrinking economy. Property-listing business Zoopla says that private rents are rising at the fastest rate since the 2008 financial crisis.

The average monthly UK rent hit £995 in the first quarter, up 11% year-on-year.

This explains why, despite the threat to Residential Secure Income posed by rising costs, City analysts think the business will keep growing profits in the short-to-medium term.

The dividend stock’s earnings are expected to soar 25% in 2022 and then rise 4% next year. These readings leave Residential Secure Income trading on a sub-1 price-to-earnings growth (PEG) ratio of just 0.8, too.

This rock-bottom valuation and that large dividend makes the firm — just like Direct Line — a brilliant buy, in my opinion.

A top renewable energy stock

Demand for green energy is rocketing as steps to battle the climate crisis intensify. There are many UK shares I can buy to capitalise on this theme and NextEnergy Solar Fund (LSE: NESF) is near the top of my list.

NextEnergy invests in solar farms in Britain and Italy and had 865MW of capacity at the end of last year. Investing in solar shares can be risky as the costs of operating photovoltaic panels can be expensive and power generation (and thus profits) can take a hit if the sun doesn’t shine.

Still, I think the potential rewards on offer offset these risks as consumption of energy from solar sources looks set to soar. The International Energy Agency thinks 1,100GW of solar capacity will be added between 2021 and 2026. That’s double the rate of additions recorded in the previous five years.

Excellent all-round value

I particularly like NextEnergy because of the terrific all-round value it offers at current prices of 107p per share.

The renewable energy stock trades on a forward price-to-earnings (P/E) multiple of 10 times. A reading of 10 and below suggests that a share offers excellent value relative to its earnings prospects.

On top of this NextEnergy carries a mighty 7% dividend yield. In fact I’m particularly impressed by the company’s ability to keep growing the dividend (the board raised its dividend target for the eighth consecutive year earlier this month).

Another nearly penny stock that’s too cheap!

Stocking up on some defensive UK shares could also be a good idea as the domestic economy struggles. One such penny stock I’m thinking of buying for my portfolio is Residential Secure Income (LSE: RESI).

Having a roof over one’s head is essential in good times and bad. Consumer spending on accommodation therefore remains stable at all points of the economic cycle, giving Residential Secure Income exceptional profits visibility. Indeed the firm collected 99% of rents between October and December, latest financials showed.

This UK share works with housing associations, local authorities, and private developers to supply affordable housing. As well as having exposure to the fast-growing shared ownership segment, Residential Secure Income also operates in the increasingly lucrative retirement rentals business.

More terrific value for money

The robust earnings outlook for Residential Secure Income makes it particularly good for those seeking large dividends year after year. Under real estate investment trust (REIT) rules, the business is required to distribute 90% of yearly profits in dividends.

At current prices of 108p per share, Residential Secure Income carries a healthy 4.9% dividend yield. It also trades on a rock-bottom, sub-1 price-to-earnings growth (PEG) ratio of 0.8. I think it’s a top buy for my portfolio despite the risk that profits (and thus dividend) growth could suffer if it fails to identify suitable acquisition targets.