2 dividend shares on my buy list

Dividend stocks can be a great source of passive income. And rising interest rates mean that there are some stocks with interesting results at the moment.

Currently, I have two dividend stocks that I like, which are based in the UK. One is a healthcare employer, the other is a brick manufacturer.

Major Health Properties

Rising interest rates have weighed on UK property prices. As a result, there are several interesting opportunities in the real estate investment trust (REIT) sector.

UK REITs have seen their asset prices fall significantly with rising interest rates. And stock prices have followed suit almost everywhere.

One example is Major Health Properties (LSE: PHP). The stock is down 28% over the past 12 months, which has pushed its dividend payout to 6.5%.

As a company that owns and leases GP surgeries, it has unique risks. 90% of rental income comes from the NHS. This makes the company vulnerable to health policy changes.

At today’s prices, I think the risk is worth the reward though. Despite declining asset values, Primary Health Properties has raised its dividend for 27 consecutive years.

The stock is on my buy list because I think it’s currently attractively priced and could provide a long-lasting source of passive income. I am looking to buy later this month.

Forterra

I am also looking to buy shares in a brick factory Forterra (LSE:FORT) this month. I have been an admirer of stocks for some time, but I always thought there was something more attractive to buy.

At the moment though, I don’t think so. The stock trades at a price-to-earnings (P/E) ratio of 9 and yields a 5% dividend.

Those dividends don’t come at the expense of growth. The company has expanded its manufacturing capacity to take advantage of low demand local supply in the UK.

The new facility also means it can produce bricks at a lower cost than before. This is important, as one of the biggest risks facing Forterra today is inflation.

It reports earnings this week. One of the main challenges arising from the announcement is the potential for higher costs to weigh margins.

There are two sources of margin pressure. The first is rising energy costs and the second is higher prices for input materials.

Both of these are issues that investors will be interested in. But the company is doing a good job of maintaining its margins so far.

By being proactive with procurement, Forterra has been able to secure 80% of its energy needs this year. And businesses are adjusting their pricing structures to cope with higher cement costs.

On balance, I think Forterra is a company with a bright future. The fact that I also think it’s trading at a decent price keeps the stock on my to-buy list this month.