2 dividend shares I’m buying before the end of February!

Dividend stocks are well represented in my portfolio. These stocks provide regular income in the form of dividend payments. However, it should be noted that dividends are not guaranteed.

But I’m always looking for the best dividend stocks to add to my portfolio. And although the market has pushed up in the last month, I still see many opportunities to buy attractively priced shares with a fairly large dividend yield.

So let’s take a look at the two dividend stocks I bought before the end of February.

Green energy

There are some green energy stocks that pay strong dividends. I recently added it Greencoat UK Wind for my portfolio, and I have looked carefully at it Renewable Energy Infrastructure Group.

However, the company I bought before the end of the month was Next Solar Energy Fund (LSE:NESF) – a solar focused trust based in London. The portfolio includes 99 solar assets – the majority of which are in the UK.

The trust also has small investments in private funds and joint venture partnerships in battery storage. Meanwhile, energy generation has been de-risked through a fixed agreement at 83% of production for the next three years.

The dividend yield is currently at an attractive 6.5% while City brokers expect the dividend to continue moving north. It is forecast to pay 7.52p and 8.36p in 2023 and 2024, respectively, up from 7.17p this year.

High price power yields forward dividend coverage of 1.3-1.5. That should be pretty stable, although a coverage ratio closer to two would be healthier. I am not sure whether the income and therefore the coverage ratio has been adversely affected by the levy of energy generators. Time will tell.

The trust has a diversified portfolio, but the majority of its assets are based in the UK. Modern solar panels work well in cloudy weather, although the light on cloudy days is weak. Actually, rain can help generate power by cleaning away dust and dirt.

However, it is true that sunny days are most effective. So, power generation does not have to keep pace with demand. This is a challenge for the renewable industry, but hopefully battery technology will be able to overcome it.

Despite this, I bought NextEnergy Solar this month.

investment leader

Hargreaves Lansdowne (LSE:HL) is the UK’s leading investment platform operator. The company surged during the pandemic as thousands turned to retail investments after the lockdown.

However, Hargreaves has struggled to maintain that growth, especially as the economy has reopened and people have more time to spare. But we can also assume that the cost of living crisis has reduced income for investment purposes. It is important to note that the economic climate for 2023 remains challenging.

Despite this, there are two reasons why I bought more Hargreaves shares. First, the Bristol-based company will make £200m throughout the year as a result of higher interest rates – which equates to around 30% of revenue in 2021. This short-term increase should reduce the likelihood of investor transactions falling through.

Over time, I have seen many British people take control of their finances. And supermarket investment platform Hargreaves is the market leader for a reason. I expect the growth to continue in the coming years.