Sage Investment Club

Image source: Getty Images The recent market rally has pushed down dividend yields on some popular FTSE 100 stocks. I’ve been taking a look at the latest dividend forecasts in search of high-yield stocks to buy now. HSBC Holdings: bouncing back After a difficult patch during the pandemic, HSBC Holdings (LSE: HSBA) seems to be bouncing back. Rising interest rates have helped to rebuild the group’s profits, which rose from $5.3bn to almost $14bn last year. Broker forecasts suggest this profit growth will continue into 2023. This is expected to feed through to the bank’s dividend, which could return to its pre-pandemic level of $0.50 per share this year. Forecasts are never guaranteed, of course. But if City analysts are right, then HSBC shares currently offer a 6.8% dividend yield. In general, I see this as a very safe bank to invest in. My only concern is the political risk that stems from the bank’s heavy dependence on the Chinese and Hong Kong markets. Some shareholders have called for the bank to be split, although my guess is this won’t happen. Overall, I think HSBC shares look attractive for income seekers at current levels. Taylor Wimpey: bargain housebuilder? Now might not seem like the logical time to buy housebuilding stocks. The market is slowing and conditions could get worse. However, shares in FTSE 100 housebuilder Taylor Wimpey (LSE: TW.) have fallen by 40% over the last five years. They’re now trading in line with their book value of 120p per share. In other words, the share price is backed by cash, land, and property. There’s obviously a risk that the UK will suffer a deeper recession than expected. Property prices could fall, weakening the stock’s asset backing. However, Taylor Wimpey ended last year with net cash of £864m. This should provide a big safety buffer to offset the impact of slowing sales. I think it looks well prepared for a downturn and reasonably priced. With a forecast dividend yield of 7%, I think this could be a good time to pick up some stock for a long-term portfolio. Harbour Energy: too cheap? North Sea oil and gas producer Harbour Energy (LSE: HBR) divides investors. Some say that with the stock trading on three times forecast earnings, this business is clearly too cheap. Other investors might argue that most of the group’s fields are mature and that it will face big decommissioning costs in future years. Oil prices may also fall, and it’s likely that future funding will be much more expensive than in the past. Interest rates are rising and investors aren’t as keen to lend money to oil producers as they used to be. Harbour is getting close to paying off the debt mountain it inherited from Premier Oil. I suspect the firm’s management will then choose to hoard some cash while oil prices are high. On balance, I think Harbour shares probably are a bit cheap at the moment, but I don’t think they’re a screaming bargain. However, the 7% dividend forecast for 2023 looks pretty safe to me, so I think Harbour is worth considering.

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