Yield of 8.7%! A growing dividend stock to consider holding in a SIPP for decades

Investing in UK stocks can be an effective way to generate a large and growing passive income. FTSE100 And FTSE 250 in particular, they house stacks of high dividend growth stocks.

These indices are filled with established companies that hold leading market positions and have strong business models, which ensures them stable profits and strong cash flow. This is the perfect recipe for them to provide a reliable (and often growing) dividend over time.

A great SIPP buy

Remember, dividends are never guaranteed. Indeed, they can decrease, or even be completely suspended, when the general economic situation deteriorates.

However, a well-diversified portfolio, which provides exposure to different companies across multiple industries and geographies, can still generate increasing passive income year after year.

But which UK stocks are the best to buy today to boost dividends? Here, I’ve identified one that could be a great long-term buy for those with a self-invested personal pension (SIPP).

REITs rule

Real estate investment trusts (REITs) may be some of the safest dividend stocks on the market. The regular rents they receive often provide them with reliable income that they can distribute to their shareholders.

That’s because these particular real estate portfolios are required to pay out 90% of their annual rental income as dividends. While other stocks can choose whether or not to pay dividends, REITs simply have no choice if their rental operations are profitable.

Assured (LSE:AGR) is one such stock that benefits from a strong history of dividend growth. It has increased its annual payments over the past 11 years. Over the past nine years, dividends have also grown at a healthy average compound rate of 7%.

Robust profits

There are approximately 50 REITs listed on the London Stock Exchange Today. But I like this one because its operations can be considered particularly defensive. As mentioned above, stable profits generally translate into regular – and in this case, growing – dividends.

You see, Assura owns, manages and rents medical centers across the UK. Specifically, it owns more than 600 GP practices, diagnostic centers and primary healthcare facilities.

It goes without saying that these properties remain in high demand at all times of the economic cycle, so Assura does not have to worry about empty buildings and problems collecting rents during economic downturns.

Additionally, the majority of rent that doctors, NHS bodies and other healthcare providers pay to the company is indirectly funded by the government. This in turn reduces the risk of defaulting on rental payments.

Dividend yield of 8.7%

Of course, no action is without risks. In Assura’s case, changes to NHS policy could significantly alter its long-term growth prospects.

But as things stand, things are looking good. Demand for primary care facilities is increasing as the government tries to ease pressure on overcrowded hospitals. It is likely to continue to expand, too, as Britain’s elderly population grows.

City analysts expect Assura’s dividends to continue growing for at least the next three years. That means its dividend yield rises to 8.4% and eventually reaches 8.7%.

If I didn’t already own shares in companies in the sector Primary health propertiesI would buy Assura shares to increase my passive income in the long term.