August often brings heightened spending demands due to holidays, day trips, and family activities, making dividend income from shares a valuable source of supplementary funds. Certain companies stand out for their robust dividend payouts, giving investors the potential for attractive income streams even in challenging market conditions.

RWS Holdings, a specialist in translation and intellectual property services, exemplifies this potential. Currently trading at around 85p per share with an anticipated dividend of 12.7p, the company yields an eye-catching annual income of approximately 15%. Although such a large yield can raise doubts about sustainability, RWS has consistently increased dividends for over a decade, a trend it intends to maintain. The company’s leadership, particularly CEO Ben Faes who took charge in January, is focused on streamlining operations and fostering predictable revenue growth despite short-term profit pressures. The firm’s reach spans globally, working with high-profile clients like Coca-Cola and the London Stock Exchange, and it has embraced AI-powered tools to improve efficiency. Notably, Faes personally invested in RWS shares recently, signalling confidence in the stock, which brokers value at potentially double its current price. The firm approved a modest 2% interim dividend increase in June 2025, reflecting ongoing commitment to shareholder returns.

Chesnara, a life assurance and pensions group operating across the UK, Sweden, and the Netherlands, also offers compelling income prospects. The company has delivered consistent dividend growth for two decades and recently proposed a final dividend of 16.1p for the 2024 fiscal year, bringing total dividends to nearly 25p per share—a 3% increase year on year. Chesnara balances its portfolio between ‘closed books’ that generate steady cash flow and ‘open books’ aimed at customer growth, with recent expansion through a £260 million acquisition of HSBC Life. This deal increased customer numbers by 45% and raised assets under administration to £18 billion, bolstering future dividend potential. Chief Executive Steve Murray’s strategy integrates ongoing acquisitions to optimize growth, supported by the group’s recent inclusion in the FTSE 250 index, which enhances its visibility among institutional investors. Chesnara’s shares currently yield around 8%, maintaining appeal as a long-term holding.

In the retail property sector, NewRiver REIT has shown resilience amid economic headwinds, including rising inflation and tax pressures. The company manages a portfolio of shopping centres and retail parks leased chiefly to value-focused and popular retailers such as Lidl, TK Maxx, and Primark. NewRiver’s data-driven approach to tenant selection and lease management has resulted in a 6.7% increase in consumer spending across its assets, well above the national average. The REIT forecasts a dividend of 6.9p per share for the year ending March 2025, equating to a yield near 9.5%. Despite setbacks from the COVID-19 pandemic, the cost-of-living crisis, and exposure to the fallout from the Neil Woodford investment collapse, NewRiver has recovered strongly. Its recent acquisition of Capital & Regional has further enhanced the asset base, occupancy rates of 95%, and rent growth. CEO Allan Lockhart’s extensive sector experience underpins the company’s steady strategic execution, making the shares, currently priced at 74p, a potentially attractive buy with upside prospects.

Collectively, these companies illustrate how selective equity investments can generate meaningful dividend income even amidst economic uncertainty. Their diverse sectors—language services, financial services, and retail property—offer different risk and growth profiles, but all share a focus on sustaining and growing dividends, making them noteworthy considerations for income-oriented investors.

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Source: Noah Wire Services