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Urban Logistics REIT 

What it does: Urban Logistics REIT owns and operates more than 100 warehouses single-occupant designed for ‘last mile’ delivery.

By Royston Wild. Recent panic selling of UK assets has pushed prices of many top property stocks sharply lower. As a result, I believe Urban Logistics REIT (LSE: SHED) is an attractive buy for investors this November. 

At current prices, the FTSE 250 firm’s dividend yields for the next two financial years sit at an enormous 6.1% and 6.5% respectively. 

Property shares often provide investors with solid protection against high inflation. This is because they are usually able to raise rents in order to eliminate (or at least offset) increasing cost pressures.  

With UK inflation at 40-year highs and tipped to go higher, Urban Logistics could therefore be an effective wealth preserver. 

I wouldn’t just buy this REIT for the here and now, however. I’m expecting earnings (and consequently dividends) to grow strongly over the next decade as e-commerce steadily expands. 

Demand for the warehouses and distribution properties it owns appear on course to improve rapidly. And rents will likely stride higher given the weak construction outlook for this particular sector.

Royston Wild does not own shares in Urban Logistics REIT. 

LondonMetric Property

What it does: LondonMetric property is an urban logistics real estate manager with 17 million square feet in its asset portfolio.

By Zaven Boyrazian. LondonMetric Property (LSE:LMP) has been on a roll lately. Despite what the 33% drop in share price would suggest, the urban logistics property manager is seemingly thriving. In fact, as of October this year, occupancy stands at an impressive 99%, with an average lease term of 12 years among its tenants.

Even with e-commerce slowing on the back of reduced consumer spending, demand for urban logistics centres continues to grow – a trend management seems to be capitalising on successfully. As such, the stock offers an impressive 5.5% dividend yield.

With interest rates rising, real estate investment trusts like Londonmetric Property have been hit hard due to their high debt balances. But a closer look at the company’s loans reveals that 80% of its debts are either hedged or on a fixed rate.

In other words, the threat of rising interest rates to this business may not be as disastrous as many think. And that’s why I believe a buying opportunity in this stock has emerged for me.

Zaven Boyrazian does not own shares in LondonMetric Property.

Diversified Energy Company

What it does: Diversified Energy Company owns and operates around 67,000 mature natural gas and oil wells in the US.

By Charlie Carman. Diversified Energy Company (LSE: DEC) shares have climbed nearly 17% this year. The FTSE 250 stock offers a handsome 11% dividend yield.

A key reason I’m bullish is President Biden’s drive for American energy independence. As a domestic producer, the firm should benefit from White House policies designed to combat spiralling commodity prices fuelled by the Russo-Ukrainian war and OPEC+ production cuts.

In addition, I’m encouraged by the company’s recent share buyback scheme to capitalise on sterling’s weakness against the dollar.

Admittedly, DEC posted a $935m net loss in H1 2022, which concerns me. I’m also sceptical about the accounting accuracy of decommissioning liabilities, which assumes its old wells will survive until 2095.

Nonetheless, the business model looks healthy overall. In particular, I like the robust 22% free cash flow yield that underpins DEC’s market-leading dividend. With supportive government policies acting as a tailwind for the foreseeable future, I’d buy this stock in November.

Charlie Carman does not have a position in Diversified Energy Company. 

DS Smith

What it does: DS Smith provides sustainable packaging solutions, paper products and recycling services worldwide.

By Kevin Godbold: Despite all the gloomy economic news around, DS Smith (LSE: SMDS) issued an upbeat trading statement on 10 October.

The company reported “good and consistent” trading. And the directors said overall performance for the year will likely be ahead of their previous expectations. DS Smith is one of many businesses that have been confounding the market’s expectations recently.

I like the company’s robust cash flow record — ideal for supporting its progressive dividend policy. And after prudently skipping a few dividends in the depth of the pandemic, DS Smith has jumped straight back in to the groove of pushing the shareholder payment a little higher each year.

There’s competition in the sector. But DS Smith is well established. And I think the industry has a tailwind. Meanwhile, with the share price near 290p, the forward-looking yield is running at around 6%. I think that’s attractive.

Kevin Godbold does not own shares in DS Smith.

Imperial Brands

What it does: Imperial Brands is a multinational tobacco company and is the world’s fourth-largest international cigarette company measured by market share.

By John Choong. The Imperial Brands (LSE: IMB) share price has remained rather robust this year, outperforming its parent index by quite some margin. Not to mention, its excellent dividend yield of 7% paired with a solid history of payment makes it a lucrative income stock to buy for my portfolio.

Luxury goods tend to benefit during times of inflation due to their inelastic demand. Most of Imperial’s products are catered to a niche market, and has been evident in the company’s last couple of results. Although growth hasn’t been stellar, it’s certainly been robust, while dividend payments continue to increase. The company also recently announced a share buyback programme, which should bring more value to shareholders.

With its next ex-dividend date estimated to be later this month, I’m planning on starting a position and capitalising on the ability to generate passive income in the current inflationary environment.

John Choong has no position in Imperial Brands.

Direct Line

What it does: Direct Line provides motor and general insurance in the UK.

By Christopher Ruane. Insurance tends not to be a very exciting business. In fact, it is often rather boring. As an investor, though, that is precisely why I like it. Demand is relatively stable, proven operators have enough experience to price risks at the right level, and the business model does not look like it will stop working any time soon.

Direct Line (LSE: DLG) has those characteristics. It avoids the more exotic corners of the insurance market and is highly profitable.

Right now, Direct Line shares yield 11.4%. That is certainly attractive to me, which is why I own some. It is also high compared to most FTSE 250 peers, though. Does that suggest a cut is coming? Rising vehicle costs pose a threat to profit margins and that could continue in coming years. But the company’s business model, iconic brand and large dividend make it appealing to me.

Christopher Ruane owns shares in Direct Line.

Tritax Big Box

What it does: Tritax Big Box REIT owns, manages and develops logistics real estate in the UK.

By Paul Summers: My pick for November is FTSE 250-listed real estate investment trust (REIT) Tritax Big Box (LSE: BBOX). Having tumbled over 40% in value in 2022, its shares yield a very respectable 4.9%. 

Now, I could shoot for more income elsewhere. However, I’d rather back Tritax for two reasons. First, it’s a relatively low-risk way of tapping into the ongoing growth of e-commerce (the company provides warehouses for some of the biggest retailers around).

Second, the fact that REITs are able to raise rents to cover rising costs without too much fuss makes Tritax a great option for battling inflation. 

Having coveted the stock for so long but been put off by the price tag, now could be an excellent time for me to begin building a position by buying its shares in November. 

Paul Summers has no position in Tritax Big Box.

Aviva 8 ⅜% PF 8 ⅜ CUM IRRD PRF #1

What it does: Aviva is a multiline insurance company. Its preferred stock pays a fixed dividend of 8.375p per year.

By Stephen Wright. My best British income stock for November is Aviva 8 ⅜% PF 8 ⅜ CUM IRRD PRF #1 (LSE:AV.B) Catchy name, but what is it?

In short, it’s Aviva’s preferred stock. Unlike the common equity, the stock pays a fixed dividend of 8.375p per year. 

That dividend has to be paid by management before any dividends get paid to common shareholders. And if it doesn’t get paid in a particular year, it rolls over and all of the outstanding dividends have to be paid to preferred shareholders before any are paid to holders of common stock.

The shares can’t be bought back by the company outside of an Extraordinary General Meeting. So I expect to keep receiving the dividends from these for some time.

In a turbulent market, I’m looking for something relatively predictable. That’s why I’ve settled on this as my choice.

Stephen Wright owns shares in Aviva 8 ⅜ PF 8 ⅜ CUM IRRD PRF #1.

M&G

What it does: M&G is a savings and investment management company, managing shares, real estate and other assets.

By Alan Oscroft. Like others in the investment management business, M&G (LSE: MNG) has fallen out of favour among investors in the current economic crisis.

The share price slumped when inflation started escalating a few months ago. After a modest October recovery, though, M&G is only around 10% down over the past 12 months.

That still leaves the forecast dividend on a hefty 10.5% yield. It’s risky relying on a dividend forecast. But M&G is currently engaged in a share buyback programme, which suggests it has the cash available.

The incoming chief executive and the chairman both bought M&G shares in October, which is also encouraging.

In the first half, its Wholesale Asset Management business achieved net client inflows for the first time since 2018. The second half could prove tougher, and that’s where the short-term risk lies.

But I’ll be considering M&G as the next stock for me to buy as a long-term dividend investment.

Alan Oscroft does not own M&G shares.

BlackRock World Mining Trust

What it does: BlackRock World Mining Trust in an investment trust that runs a diversified portfolio of global mining stocks.

By Ben McPoland. The decarbonisation of the global economy is going to take many decades. And this transition is going to need a lot of raw materials. Whether it’s iron ore to make wind turbines or lithium for the batteries of electric vehicles, decarbonisation is a massive tailwind for mining companies. The BlackRock World Mining Trust (LSE: BRWM) is perfectly placed to capture this demand, I believe, as it has positions in most of the companies mining and selling these vital raw materials.

Some of the trust’s largest holdings include BHP Group, Glencore, and Rio Tinto. It has a dividend yield of 7%, and the payouts have increased substantially over recent years

It should be noted that mining shares can experience much more volatility when compared to other investments. However, I’d be inclined to see dips in the trust’s stock price as opportunities to buy more for my holdings. I intend to start a position myself in November.

Ben McPoland has no position in BlackRock World Mining Trust.

Real estate investment trust

As a quick reminder, a real estate investment trust (REIT) is a business designed to yield income from property. As a rule of thumb, it must return 90% of profits to shareholders in the form of dividends. This is why I already own a few REITs as part of my holdings, with the primary aim of boosting my passive income stream.

Urban specialises in industrial and logistics-style properties to help with ‘last mile’ delivery. It focuses on smaller, single-let industrial properties in key locations throughout the country.

At present, Urban shares are trading for 134p. At this time last year, the stock was trading for 163p. This is a 17% decline over a 12-month period. This share price drop does not concern me. In fact, I view it as an opportunity to buy cheap shares in a stock I’ve had my eye on for some time.

An income stock with challenges to be wary of

Despite my decision to buy Urban shares, I must note bearish aspects which could hamper the shares. Firstly, I believe the share price has been pushed down by economic volatility caused by soaring inflation and rising costs. This is not good news for Urban as many businesses are struggling. This could see them struggle to pay rent to firms like Urban for the use of their properties.

Next, for any income stock, it is worth remembering that dividends are never guaranteed. They can be cancelled at the discretion of the business to conserve cash in times of volatility.

Finally, Urban has a record of acquisitions to grow its portfolio of properties. Acquisitions are great, but they have the ability to go wrong. One common issue is overpaying for a property in Urban’s case. This could have a detrimental impact on returns.

Why I like Urban shares

To start with, I like Urban’s business model and the sector it is currently targeting. E-commerce has exploded in recent years, and there is still a shortage of quality warehousing space for businesses to utilise. Urban specifically targets businesses looking for ‘last mile’ hubs. This should help boost performance and returns for some time to come.

Moving on to Urban’s level of return, the shares current dividend yield stands at an impressive 6%. This is higher than the FTSE 100 and FTSE 250 average of 3%-4% and 1.9% respectively.

Next, due to Urban’s recent share price drop, the shares look dirt-cheap on a price-to-earnings ratio of just over three.

Finally, Urban has a good track record of performance. I do understand that past performance is not a guarantee of the future. However, looking back, I can see it has grown revenue for the past four years consecutively. It also continues to expand its portfolio of properties for growth purposes.

In conclusion, I believe Urban will serve me well as a good income stock. I do expect some shorter term headwinds due to the current volatility in the economy. Despite this, I buy and hold for the long term, so I am happy to buy the shares and hold on to them for long-term returns.

The FTSE 250 is highly geared towards companies dependent on a strong British economy. So it’s no surprise that the index has tanked amid the government’s plans to push ahead with its controversial ‘mini budget.’

However, I think much of the selling has been driven by panic rather than investing logic. Some top quality UK shares have been heavily sold alongside more vulnerable companies.

This provides an opportunity for eagle-eyed investors to buy quality at knockdown prices. Here are two I’m considering buying for my own portfolio in October.

1. Pets at Home Group

Investing in the retail sector is risky as costs rise and consumer spending power falls. But Pets at Home (LSE: PETS) is a company I think could weather the worst of the crisis.

In recent years the petcare market has been more resilient than the broader retail sector. This is evident in Pets at Home’s latest financials, which showed like-for-like sales up 6% in the three months to June.

Demand for pet food, litter and accessories remains solid at all points of the economic cycle, then. And Pets at Home has another powerful weapon in its arsenal: it operates hundreds of in-store and standalone veterinary practices.  The essential service they provide gives the FTSE 250 firm another layer of resilience.

I also think the stock’s impressive market share gains make it a lifeboat in these difficult times. The country’s dominate petcare retailer has grown its total take of the market to 24%, up an impressive 6% in just five years.

Pets at Home’s share price has sunk 44% in 2022. I expect it to recover strongly over the long term as the animalcare market strongly grows. Analysts believe the industry will expand at an annualised rate of 5.2% to be worth $232.1bn by 2030.

2. Urban Logistics REIT

Property stock Urban Logistics REIT (LSE: SHED) has slumped 32% in value this year, meanwhile.

Real estate investment trusts (REITs) have been hit particularly hard since the ‘mini budget.’ Their high valuations have left them vulnerable to heavy share price falls. And more weakness could be possible in the near term.

But I’d use Urban Logistics’ recent share price reversal as an excuse to buy. Its growing portfolio currently comprises more than 100 warehouses and logistics centres across the UK. Its focus on these types of assets could deliver impressive long-term profits as e-commerce steadily expands.

Urban Logistics is already benefitting strongly from a large supply and demand imbalance in its chosen markets. It said in June that is is witnessing “continued upward momentum on rents” due to a shortage of available properties.

I also think the FTSE 250 firm is a safe-haven during this period of high inflation. Property firms like this can effectively pass on their rising operating costs by raising rents for their tenants.

One final thing: recent share price weakness has increased the REIT’s dividend yield to an impressive 6%.

Always needed

Companies that provide basic necessities like healthcare will always have demand, even during an economic downturn. Consequently, my first pick is GSK (LSE: GSK).

As a sign of how resilient it is, GSK recently beat analyst expectations for Q2, thanks to very healthy sales of its Shingrix shingles vaccines. Consequently, it also raised its targets for revenue and profit for 2022.

Any potential downsides? Well, having recently separated itself from its lucrative consumer healthcare business (now known as Haleon), GSK is a pure play on biotech. This means it needs to keep its pipeline of treatments moving along. That requires a lot of money. Many promising candidates won’t make the grade either.

Dividend payments will also be lower going forward. GSK is expected to pay out 45p in 2023. That’s a yield of 2.7%, as I type. Not bad, but not what it once was. On the flip side, a price-to-earnings (P/E) ratio of 13 feels like great value.

I doubt the share price will shoot the lights out over the next year but that’s not the point. The priority here is capital preservation and I’d be happy to buy today.

Pet power

The rise in pet ownership over the pandemic has been a boon to those providing products and services to owners. Therefore, my next pick is Pets at Home (LSE: PETS)

Isn’t buying any retailer in this environment risky? Quite possibly. Sadly, some people may be forced to give up their furry (or not so furry) companions due to the costs involved.

Even so, the gradual humanisation of pets over recent decades makes me confident that most people won’t even consider this an option. I also like how Pets at Home has its fingers in many pies. In addition to selling the food and toys customers need, it offers grooming and veterinary services. Like healthcare for humans, the latter isn’t a discretionary spend – it must happen.

Down almost 30% in 2022 and on a P/E of 16, the shares look fairly valued to me. A forecast dividend yield of 3.7% means I’m being paid to be patient too.

Again, I’d buy Pets at Home shares as things stand.

Safe storage

Recession or not, companies will still need sites to store their goods. So my final pick is Urban Logistics (LSE: SHED).

Urban invests in properties used for housing and distributing essential things — a market “where demand is high and supply is low“. Tenants include Boots, DHL, Sainsbury’s and the NHS.

One particular attraction here is the dividend stream. As a Real Estate Investment Trust (REIT), this £900m-cap business is required by law to return 90% of property income profits to shareholders each year. Urban currently has a dividend yield of 4.2%.

Naturally, these positives haven’t been ignored by the market. Shares in Urban Logistics already trade at a pretty steep 23 times earnings.

Considering the diversification it would bring to my portfolio (I don’t currently hold any REITs), I think the benefits outweigh the drawbacks.

So far however, these businesses are still thriving. A chronic jobs shortage means net fees are soaring, as blockbuster results today from Robert Walters show.

Net fees at the firm soared 26% year-on-year between April and June. Fees were also the highest second-quarter number on record and prompted Robert Walters to lift its full-year profits forecast.

SThree’s no stranger to lifting its own earnings estimates either. In mid-June, it raised forecasts after announcing a 25% jump in net fees in the first half, to £203.1m. Critically, the small-cap said it witnessed “very strong” growth in its German, US and Dutch markets too.

A top stock for the tech age

I like SThree in particular because of its focus on the STEM (Science, Technology, Engineering and Mathematics) sectors. These are poised for strong growth over the long term as areas like healthcare, renewable energy, automation and the Internet of Things continue to evolve.

In the meantime, City analysts are confident the company should continue growing earnings despite rising economic headwinds. Increases of 9% and 8% are forecast for the financial years to November 2022 and 2023 respectively.

At current prices, these forecasts leave SThree trading on a forward price-to-earnings (P/E) ratio of around 10 times. Such a low valuation comes despite the firm’s impressive resilience so far. I’d use recent share price weakness as a buying opportunity.

5.6% dividend yields

Urban Logistics REIT (LSE: SHED) is another dirt-cheap UK share on my radar. I like this particular stock because it offers terrific value from both a growth and earnings perspective.

The property stock trades on a forward price-to-earnings growth (PEG) ratio of 0.8. A reminder that any reading below 1 suggests that a stock is undervalued.

Meanwhile, Urban Logistics carries meaty dividend yields of 5% and 5.6% for the next two financial years.

A red-hot property share

Urban Logistics invests in big-box warehouse and logistics assets which are critical in an age where e-commerce is growing sharply. In fact, supply of these properties in Britain remains low while demand is ripping higher, driving rental income at firms in this area to the stars.

Helped in part by recent acquisitions, rental income at Urban Logistics soared 59.8%, to £36.5m, in the 12 months to March. Latest financials also showed the value of its properties grow 25.4% on a like-for-like basis to £153m.

An acquisition-led growth strategy can leave a company open to risks like unexpected costs. But I’m encouraged by the excellent track record Urban Logistics has on this front.

City analysts think earnings here will rise 25% in this financial year to March 2023 and 9% next year too. And I expect the business to deliver strong and sustained profits growth over the long term too.

Urban Logistics REIT

Urban Logistics REIT (LSE: SHED) plays a major role in getting goods to online shoppers. The business operates large distribution spaces and, more specifically, in the ‘last mile’ of a parcel’s journey from retailer, manufacturer, and courier to the customer.

I think this FTSE 250 business could thrive as online shopping steadily grows. The supply of warehouse and logistics spaces has failed to keep up with demand in recent times. The current development pipeline suggests that this shortfall should persist for years to come too, meaning the rents Urban Logistics can charge should continue growing robustly.

Right now, the business offers excellent all-round value. It trades on a price-to-earnings growth (PEG) ratio of 0.5 and carries a 5.4% dividend yield.

I think Urban Logistics is a top buy even though its thirst for acquisitions carries significant risk. A facility could fail to attract tenants if, say, it is ultimately seen to be in an unfavourable location.

Associated British Foods

I think the growth of value retail and e-commerce could supercharge profits at Associated British Foods (LSE: ABF) soon.

This clothing segment has been expanding strongly and ABF’s Primark is been a leading player here. And the industry looks poised for more long-term growth as consumers become more careful with their money.

I worried about how Primark’s lack of an online presence could harm its profits opportunities. Therefore, news this week that the clothing and lifestyle retailer will begin trialling click-and-collect has improved my feelings towards the stock. This could be a gamechanger in the brand’s battle against competitors like ASOS.

I’d buy FTSE 100-quoted Associated British Foods despite the headwinds created by rising costs. Increasing raw materials, labour, energy and freight costs all pose a near-term danger.

Centamin

Gold mining stocks like Centamin (LSE: CEY) tend to rise in value when times get tough. The eternal appeal of the sentimental metal makes gold the ultimate flight-to-safety asset — and, by extension, producers of the stuff — to many investors.

Gold’s sliding price in 2022 however shows that demand doesn’t always detonate in difficult times. This time around a soaring US dollar and extreme central bank rate hikes have damaged interest in the commodity.

However, I think that bullion and bullion producers could rebound sharply in price before too long. And that makes FTSE 250-listed Centamin a great buy right now. Inflation continues to soar despite aggressive action by central banks.

Meanwhile key economic indicators are increasingly suggestive of a sharp economic cooldown. I think gold might roar back towards the record highs recorded during summer 2020.

Today, Centamin trades on a price-to-earnings (P/E) multiple of around 10 times. Its dividend yield meanwhile sits at 5.8%. These numbers reinforce the company as a great dip buy, in my opinion.

Here, I’m going to highlight three dividend payers that strike me as great ISA investments right now. I think these stocks could help me generate some nice tax-free passive income, as well as some capital growth, in the years ahead.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A FTSE 100 high-yielder

First up is Legal & General (LSE: LGEN), a leading provider of financial services. Recently, it declared a dividend payout of 18.45p per share for 2021, which equates to a very attractive yield of 6.6%, at the current share price.

I don’t usually invest in ‘high-yielders’ as they tend to be higher-risk investments. However, in LGEN’s case, I’m willing to make an exception. That’s because the company appears to have plenty of momentum right now.

Last year, for example, profit after tax jumped 28% to £2,050m while return on equity came in at 20.5%. On the back of this strong performance, the company raised its full-year dividend payout by 5%.

One risk to be aware of here is that the stock can be volatile at times. We saw this volatility earlier in the year. Yet I’m comfortable with share price ups and downs. I think the key with LGEN is to take a long-term view and enjoy the big dividends along the way.

A high-quality dividend stock

The next stock I want to highlight is Sage (LSE: SGE). It’s a leading provider of accounting software. The prospective dividend yield here is about 2.6% right now.

There are a number of reasons I like the look of Sage shares at present. One is that the company should be protected from inflation. Not only does it have a very high gross profit margin (companies with high gross margins are typically able to handle inflation well because rising costs don’t hurt their profits as much) but it also has the ability to raise prices.

Another reason is that the company has been buying back its own shares recently. This should push earnings up, over time.

Sage shares currently have a forward-looking P/E ratio of about 27. This valuation adds a bit of risk. I’m fine with it however. I see it as quite reasonable for a high-quality software company.

A small-cap dividend payer

Finally, in the small-cap space, I like Urban Logistics REIT (LSE: SHED). It’s a real estate investment trust that owns a portfolio of strategically-positioned warehouses across the UK.

SHED has been a reliable dividend payer in recent years and for the year ending 31 March, the group is expected to pay out 7.6p per share in dividends. At today’s share price, that equates to an attractive yield of around 3.9%.

It’s not just the yield that’s attractive here however. In my view, the stock’s valuation is also very appealing. At present, the forward-looking P/E ratio is just 21. Given that the UK warehouse market is absolutely booming right now, I think that’s a bargain.

The major risk here is that the company, like other REITs, sometimes raises new capital from investors to fund its expansion. This is important to know as it can have a negative impact on the share price in the short term.

As a long-term investor however, I’m not too concerned about this.

Playing the retirement boom

I was flicking through the papers earlier today when I came across an extraordinary statistic. According to McCarthy Stone — a construction firm that builds homes for elderly people — demand for retirement properties is four times higher than current levels of supply. The Daily Telegraph story reflects the massive opportunity that Britain’s rapidly ageing population offers to share investors.

I used to tip McCarthy Stone a top stock to buy before its private equity takeover last year. But investors can still capitalise on soaring demand for retirement properties by buying Legal & General Group (LSE: LGEN). This FTSE 100 stock develops homes for retirees through its Inspired Villages and Guild Living divisions. Collectively these units have a combined pipeline of around 4,500 homes.

7.1% dividend yields

I like Legal & General because of the broad range of financial services it offers to older people. I reckon interest in its lifetime mortgages, pension plans, and other products for retirees should grow robustly as populations in its markets age. My main concern with buying this business is the massive competition it faces from other established players like Aviva, Zurich, and RSA Insurance.

That being said, this is a danger I’d be happy to accept given the cheapness of Legal & General’s share price. City analysts think earnings here will rise 5% in 2022. This leaves the company trading on a price-to-earnings (P/E) ratio of eight times. At current prices, Legal & General also offers a spectacular 7.1% dividend yield. This is more than double the current 3.5% FTSE 100 forward average.

Takeover action is heating up

Businesses that offer warehousing and logistics services also offer masses of investment potential as e-commerce takes off. This is reflected by fresh takeover action on the industry. On Monday, it was announced that US-based GXO will acquire Clipper Logistics — a UK share I actually own — for a cool £950m.

Clipper is a share I bought back in 2020 to make money from the internet shopping boom. The services it provides are essential in helping retailers and product manufacturers to reach the online consumer. I might take the cash I receive from Clipper’s sale and reinvest it in Urban Logistics REIT (LSE: SHED).

Another great dividend share to buy

At 176p per share, this property investment trust offers some serious value for money. City brokers think earnings here will soar 36% in the upcoming financial year (beginning April 2022). This leaves it trading on a forward price-to-earnings growth (PEG) ratio of 0.5. In addition, the dividend yield at Urban Logistics registers at a fatty 5%.

I think Urban Logistics is a particularly good buy for those seeking passive income from UK shares. Its position as a real estate investment trust means it has to pay a minimum of 90% of annual profits out as dividends. I’d buy the business — which operates scores of properties all over the country — even though a failure to locate decent acquisitions could hit profits growth later down the line.

Here, I’m going to highlight two of my favourite UK REITs. I’d be comfortable buying both of these securities for my portfolio today with the aim of generating passive income.

An under-the-radar REIT with a 4.3% yield

Let’s start with Urban Logistics (LSE: SHED). It’s an under-the-radar real estate company that owns a portfolio of strategically located warehouses across the UK. These warehouses are let out to retailers and delivery companies. Tenants include Amazon and XPO.

The reason I like this REIT is that the market for retail warehouse space is absolutely booming right now due to the growth of online shopping. Retailers need warehouse space to store goods before they’re shipped out to consumers, and this is benefiting the companies that operate in this area, including Urban Logistics. Last year, a record 66m square feet of space was taken up in the UK, up 27% year on year.

The dividend yield here is certainly attractive. For the year ending 31 March 2022, analysts expect SHED to reward investors with a dividend of 7.6p per share. At the current share price, that equates to a prospective yield of around 4.3%. Not bad at all in today’s low-interest-rate environment.

The valuation on the stock is also attractive, in my view. At present, it has a forward-looking P/E ratio of about 19 using next year’s earnings forecast. That’s well below that of rival Tritax Big Box.

One risk to consider here is that the company sometimes needs to raise new capital to grow its portfolio. This can hit the share price in the short term. I’m comfortable with this risk, however. I think the key here is to take a long-term view and enjoy the dividend income along the way.

A FTSE 250 healthcare REIT

Another REIT I’d be happy to buy today for passive income is Primary Health Properties (LSE: PHP). It’s a FTSE 250 business that invests in healthcare properties such as GP surgeries. Its portfolio currently consists of around 520 properties across the UK and Ireland.

One reason I like this REIT is that a large chunk of its rental income is backed by the UK government. So, it’s unlikely to find itself in a situation where it’s unable to collect its rents. Another reason I’m bullish here is that the group looks set to benefit from the UK’s ageing population, which is likely to increase demand for healthcare.

PHP has a good long-term dividend track record and has increased its payout at a rate above inflation in recent years. For 2021, the group is expected to pay out 6.2p per share to investors. That translates to a prospective yield of around 4.3% at the current share price.

One risk here is the arrival of virtual healthcare services. This form of healthcare has become more popular during the pandemic due to the convenience it offers and it could potentially reduce the demand for physical GP surgeries going forward.

Overall, however, I think the risk/reward proposition here is attractive. With the stock trading on a P/E ratio of about 22 after a pullback, I see it as a buy.

In top health

I consider Primary Health Properties’ (LSE: PHP) to be an very-safe place to park my money. The healthcare facilities like GP surgeries that it lets out remain in high demand whatever the weather. Estate agency Savills says that some 307m doctor appointments are booked every year. In fact I expect the need for its services to rapidly rise as Britain’s population booms and demand for medical care increases.

At the same time the number of doctor surgeries is falling due to closures and mergers. And this is pushing rents at the likes of Primary Health Properties steadily higher. Savills notes that the number GP bases dropped a shocking 13% between 2013 and 2020. I like Primary Health’s plan to boost earnings through steady expansion, though I’m cautious that problems on this front (like overpaying for an asset) could hit shareholder returns.

Primary Health Properties’ ultra-defensive operations have given it the strength and the confidence to raise dividends every year for almost a quarter of a century. City analysts are expecting another meaty hike in 2022, too, resulting in a decent 4.5% dividend yield.

A great e-commerce stock

Urban Logistics REIT (LSE: SHED) is another property stock I’m considering adding to my portfolio. It’s similar to another couple of stocks I already own today in Tritax Big Box REIT and Clipper Logistics. This business owns close to 100 warehouse and distribution properties and is watching demand for its assets balloon as e-commerce grows. I think its 4.2% forward dividend yield makes it a top dividend stock to buy right now.

Like Primary Health Properties, Urban Logistics operates in a market where supply is limited and rents are leaping. And I like that the healthcare specialist is committed to acquisitions to maximise its revenues opportunities. The firm raised £250m via an equity raise just a month ago to fuel its expansion programme. And it’s already forked out £28.2m of this to snap up four new assets in Leicester, Sheffield, Northampton, and Dundee.

Urban Logistics is a specialist in ‘last mile’ logistics and as I say it stands to gain significantly from the online shopping craze. Latest data from Adobe showed Brits spent £94bn online in the first 10 months of 2021, up 12% year-on-year. Knight Frank estimates that around 1.4m square feet of warehousing space is required for every £1bn worth of e-commerce sales.

Like any stock, Urban Logistics isn’t without risk of course. Some of its tenants in other sectors could suffer if broader economic conditions worsen. And this could have an impact on rent collection. Still, it’s my opinion that the exceptional long-term opportunities created by the online shopping boom makes this property stock too good to for me to miss adding to my portfolio.