Forget Lloyds shares and consider buying these high dividend stocks for passive income!

It’s
easy
to
see
why

Lloyds
(LSE:LLOY)
shares
are
so
popular
with
dividend
investors.
Its
6%

dividend
yield
for
2024
soars
past
the
3.7%
average
for
the
broader


FTSE
100.

And
the
yield
rises
to
an
even-better
6.6%
for
2025.

A
robust
balance
sheet
means
the
bank
looks
in
good
shape
to
meet
these
forecasts,
too.
But
this
isn’t
enough
to
encourage
me
to
invest.
I’m
also
seeking
shares
that
could
deliver
solid
capital
gains.
And
as
the
UK
economy
struggles
and
market
competition
heats
up,
I
fear
Lloyds’
share
price
could
struggle
for
traction.

There
are
many
other
passive
income
stocks
I
think
investors
should
consider
today.
Here
are
just
a
couple.

Banco
Santander

Just
like
Lloyds,

Banco
Santander
(LSE:BNC)
faces
the
same
twin
dangers
of
mounting
competition
and
macroeconomic
pressures
on
its
profits.

But
one
big
thing
sets
this
company
apart.
That’s
its
exposure
to
emerging
Latin
American
markets
that
could
deliver
long-term
growth.

Santander
sources
25%
of
profits
from
South
America,
where
it’s
a
leading
industry
player
in
regional
powerhouses
such
as
Brazil,
Argentina
and
Chile.
It
also
has
a
significant
presence
in
the
rapidly
expanding
Mexican
economy.

While
personal
income
levels
have
been
growing
rapidly
in
these
territories,
banking
product
penetration’s
still
low.
So
Santander
—
whose
revenues
jumped
13%
in
2023
—
has
considerable
scope
to
continue
increasing
sales
and
earnings.

Like
Lloyds,
Santander
has
a
rock-solid
balance
sheet
that
it’s
boosting
through
successful
cost-cutting
measures.
This
helped
it
return
€5.5bn
to
shareholders
through
dividends,
cash
and
share
buybacks
last
year.
Encouragingly
for
income
investors,
the
bank
has
vowed
to
hike
this
amount
to
a
new
record
of
€6bn
in
2024
too.

This
supports
an
above-average
4.1%
dividend
yield
for
2024,
a
figure
that
rises
to
4.4%
for
2025.
Short-term
yields
may
not
be
on
the
same
level
as
Lloyds
but,
on
balance,
I
think
it’s
a
far
more
attractive
stock.

TBC
Bank
Group

TBC
Bank
Group
(LSE:TBCG)
is
another
retail
bank
with
considerable
share
price
and
income
potential.
Like
Santander,
it’s
also
focused
on
customers
in
developing
markets,
in
this
case
Georgia
and
Uzbekistan.

Total
income
here
rose
15%
in
2023
as
demand
for
its
loans,
and
both
current
and
savings
accounts,
continued
to
grow.
Over
the
course
of
last
year
the
number
of
customers
in
its
core
Georgian
market
rose
10%.
In
Uzbekistan,
where
it
entered
in
2020,
saw
customer
numbers
leap
48%.

TBC
is
making
the
most
of
low
product
penetration
and
rapid
GDP
growth
in
these
countries.
It’s
also
investing
heavily
in
digital
banking,
a
strategy
that’s
proving
highly
effective
in
attracting
customers.

One
drawback
of
owning
the
bank’s
stock
is
the
close
proximity
of
its
operations
to
Russia.
This
could
be
detrimental
to
its
share
price
if
concerns
about
the
geopolitical
stability
of
the
region
grow.

Yet
I
still
think
it’s
an
attractive
passive
income
stock
to
consider
today.
Its
7.2%
dividend
yield
for
this
year
moves
to
8.3%
for
2025.