6%+ dividend yields! 5 of the best dividend stocks to buy right now

I’m searching for some of the best dividend stocks to buy right now. Lets get straight down to it and talk about five top UK income shares on my watchlist. They’re listed in order of ascending yield. 

Tharisa (6% dividend yield)

Platinum group metals (PGM) producer Tharisa (LSE: THS) offers very attractive value for money in my opinion. On top of that huge dividend yield, this penny stock trades on a forward price-to-earnings (P/E) ratio of 4.8 times. This is comfortably inside the widely-regarded bargain watermark of 10 times and below.

I think Tharisa’s profits could soar in the short-to-medium term because of rising inflationary pressure. Safe-haven metals like platinum tend to increase in price when inflation reduces the intrinsic value of paper money. But this isn’t the chief reason I’d buy Tharisa stock. I think it’s a great company to own as demand for environmentally-friendly technologies rapidly grows.

PGMs are used in increasingly vast quantities inside catalytic converters to clean up exhaust emissions. They’re also a critical component in the electrolysis process that produces green hydrogen. This carries plenty of potential for Tharisa as the world moves gradually away from fossil fuels. I’d buy this dividend stock even though a fresh economic downturn could hit industrial demand for its product.

Central Asia Metals (6.5% dividend yield)

Investing in mining stocks can be a dangerous business. The process of metals excavation is highly complex and a variety of problems can occur to stop production. Exploration and development work isn’t an exact science either, and issues on either front can also hit earnings forecasts hard. Mining shares can therefore experience times of extreme share price turbulence.

I still believe, though, that Central Asia Metals (LSE: CAML) — like Tharisa — looks attractive from a risk-to-reward perspective. Today the copper, zinc and lead producer trades on a forward P/E ratio of just 6.5 times. I like this particular commodities stock because it produces metal in Kazakhstan, a region where the number of people living in urban areas is rising rapidly and therefore so is demand for construction materials.

I’d also buy this stock because the metals it produces are essential in the manufacture of electric cars. This UK mining share then could see profits soar as demand for these low-emissions vehicles grow. KPMG reckons electric cars will account for around half of all auto sales by 2030.

Direct Line Insurance Group (7.6% dividend yield)

I think Direct Line Insurance Group’s (LSE: DLG) one of the most dependable dividend stocks out there. It’s been proven that spending on general insurance products remains strong even during economic downturns. This is especially the case when it comes to motor insurance, of course, given that it’s a legal requirement for drivers.

The defensive nature of its operations provides Direct Line with excellent earnings visibility and consequently the means to pay big dividends year after year. But what’s so special about this particular insurance business? Well I like the excellent customer loyalty that its heavyweight brands like Direct Line, Churchill and Privilege command. They give the company a distinct advantage. That said, they don’t remove the threat posed by competitors and this is a risk I need to take into account. 

But Direct Line’s excellent cash generation makes it one of the best dividend stocks to buy right now in my view. Not only is this enabling the insurer to pay above-average yields and to engage in share buybacks. It is also helping it to invest in its core operations and in technology to deliver growth.

ContourGlobal (7.7% dividend yield)

Power generator ContourGlobal (LSE: GLO) has the wind in its sails at the moment. In December it upgraded its profits guidance for 2021 thanks to better-than-expected performance from one of its Spanish natural gas plants. I don’t think this dividend stock’s just a great buy for today, though. I reckon it’s a good way to make money from soaring energy consumption around the globe.

ContourGlobal builds and operates power stations across Europe, Africa and Latin America. Demand for its services should hopefully grow as population levels increase and economic output in emerging markets takes off. I also like this particular energy producer because of its growing focus on renewable energy. This could help its share price rise over the long term as the theme of responsible investing takes off. 

But I’m aware that today ContourGlobal trades on a high forward P/E ratio of around 29 times. A premium share price always leaves a company in danger of sinking if earnings forecasts start to look a bit flaky. A project delay is one danger that could send ContourGlobal’s share price reversing sharply.

Bank of Georgia Group (8.3% dividend yield)

Rising interest rates mean that it might be a good time for me to think about buying some banking stocks. A higher interest rate means that banks can generate greater profits from their lending activities. But I’m not thinking about buying Lloyds, Barclays or any other UK-focused bank. I’d much rather invest in Bank of Georgia Group (LSE: BGEO).

This isn’t just because Bank of Georgia’s yield smashes those of the FTSE 100 banks either. Banking product penetration in the Eurasian country remains quite low compared with the West. At the same time the Georgian economy is tipped to grow strongly along with personal wealth levels. It’s a blend that is already supercharging earnings growth at Bank of Georgia (profits have risen 67% during the past three years, for example).

Of course, growing political instability in former Soviet territories could damage Georgia’s economic growth. But it’s my opinion that this threat is largely reflected in Bank of Georgia’s super-low share price. Today it trades on a forward P/E ratio of just 4.3 times.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.