3 high-yield dividend shares I’d buy for regular income in 2023

I already have some dividend stocks in my Stocks and Shares ISA. But I plan to buy another one in 2023.

This is because in addition to providing stable income, these stocks offer defensive characteristics. For example, because they can distribute cash to investors, they tend to be profitable businesses.

Finding the right stocks

When looking for dividend stocks to buy, I look for a few key features. First, I’d love to see a strong dividend yield. But what does that mean?

Average yield for FTSE 100 the stock is currently 3.7%. But some large cap companies return 6% to 10%. That will be the target target.

Next, I will consider whether the company can afford the payment. Dividend cover is the metric we tend to use for this. This shows how many times the dividend can be covered by earnings.

So the cover of both means that the business can pay double the current dividend from net income.

Next, I’ll look for years of dividend history and as a bonus, I’d rather see a growing dividend.

Although I can see dozens of suitable candidates, I have narrowed the list down to three stocks that I bought today.

The Phoenix Group

Sometimes the best dividend stocks can be an unfamiliar, lonely and boring business.

I think so Phoenix Group Holdings can be explained in this way. This savings and pensions business is relatively unknown to many, despite being listed on Footsie.

That said, it offers a solid 8% yield, a 1.7 dividend cover and 13 years of consecutive payouts. It also benefits from consistent dividend growth.

Phoenix has a relatively stable pension and insurance products business. Growth may be limited, in my opinion. But as the dividend slows down for regular income, I’m still buying it now.

Imperial brand

Another stock on my list is the consumer defense business Imperial brand. In times of economic uncertainty, I prefer to own companies that are not cyclical. It means that it does not go up and down with the direction of the economy.

As a predominantly tobacco business, Imperial lives up to that description. These customers are sticky and tend to stick with their chosen brands.

That makes it very cash-generative and allows for a chunky 6.5% dividend yield. With 26 years of back-to-back dividends, and a comfortable cap of 2, it’s exactly the type of show I’d buy.

Legal & General

I finally bought it Legal & General Group. This multinational financial services provider was founded in 1836. It has established itself as a provider of pension, investment and insurance services.

Given my background, I wasn’t too surprised to see a 30-year consecutive dividend history. Currently, it pays a dividend of 7% and closes at 1.7%.

Like Phoenix Group, growth may be limited. So, the share price gains in the coming years will also be limited, in my opinion. That said, I would still buy for a strong and reliable dividend.

If I bought all three stocks today, I would expect a 7% dividend this year. In a £20,000 Stocks and Shares ISA, that equates to around £1,400.