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There are hundreds of dividend shares to choose from in the UK stock market. And despite share prices reaching a new record high this year, there are still plenty of chunky yields on offer.
Among the most generous right now are Victrex (LSE:VCT) and Hansard Global (LSE:HSD) shares, with payouts of 9.75% and 9.31% respectively. That means for every £1,000, investors can unlock a passive income of up to £97.50 right now.
However, as all experienced investors know, a high yield often comes with a lot of risk. It can even be a warning signal that a dividend cut is on the horizon. So the question now becomes, are Victrex and Hansard able to maintain their current payouts? Let’s explore.
Income from polymers
Starting with Victrex, the high-performance polymer manufacturer has had a rough ride in 2025, with its market-cap shrinking by around 43% since January.
Digging deeper, this downward trajectory’s somewhat justified. Cyclical headwinds have dampened demand for its speciality products, particularly within high-margin sectors like healthcare. While market conditions have started to improve, a less favourable product mix means that profit margins are still feeling the pinch.
Obviously, that isn’t good news for investor sentiment. And the impact’s only been amplified by operational missteps in ramping up production at a new manufacturing plant in China.
Despite these challenges, shareholders continue to receive payouts, with dividends per share falling below underlying earnings per share. That’s an encouraging sign of sustainability. And with challenges in China starting to be resolved, along with further growth in polymer volumes backed by a healthy balance sheet, the company could be near the beginning of a lucrative recovery.
Income from specialised savings
Turning next to Hansard Global, the provider of specialist long-term savings and investment products has fared much better than Victrex in 2025. While it’s still lagging the wider stock market, its shares have managed to remain relatively stable along with its dividend.
Nevertheless, its underlying performance has been a bit mixed. Between June 2024 and this June, its assets under administration have slipped slightly from £1.15bn to £1.13bn. Profitability has also suffered, not helped by ongoing litigation defence spending relating to its now-closed Hansard Europe business.
However, at the same time, performance from new clients and business is actually on the rise, climbing from £77.8m to £82.4m. Furthermore, the firm’s solvency ratio also improved, signalling financial strength and providing more flexibility to continue maintaining shareholder dividends.
The bottom line
For both of these dividend shares, analysts expect payouts to be maintained in the short term. However, with dividend coverage margins tightening, prolonged soft market conditions resulting in a lack of earnings growth could ultimately force a cut to emerge later down the line.
Out of these two businesses, Victrex seems to be in a stronger position, in my opinion. So for investors looking for a potential high-yield passive income opportunity, this business could be worth investigating further. But there are also other, more promising dividend shares I’ve got my eye on right now.
