When we think dividend shares, we think FTSE 100, right? Well, there are some cracking yields among top-tier companies right now, for sure.

But I reckon that can lead investors to overlook some smaller firms with great long-term cash prospects. Here are a few on my shortlist.

Real estate

When a sector is down, isn’t that a good time to buy? I’ve been looking at companies related to property, and the FTSE 100 homebuilders are clear candidates.

But I also see some real estate invetsment trusts (REITs) that look good value. I particularly like two I think have some defence against property prices.

They’re Target Heathcare REIT and Primary Health Properties. Target invests in care homes in the UK, while Primary Health goes for front-line health assets like GP surgeries.

Cheap shares

Both share prices have slumped in 2023. And both are on forecast dividend yields above 7%.

So while any further property weakness could push the shares down further, I don’t think it should damage the long-term outlook.

That should be driven more by health demand from our ageing population than by real estate values.

Finance buys

Banks are on low valuations now. So that means buy Barclays and Lloyds Banking Group?

As it happens, I do rate those two high street giants among my top picks at the moment. But I don’t want that to distract me from some overlooked smaller banks.

And today, I have my eye on Bank of Georgia and Virgin Money UK.

Dividend growth

These two stocks have had a decent year. But the thing that draws me to both is their rising dividend forecasts. They’re not far off the big banks at this stage.

But forecasts suggest Virgin Money could reach a dividend yield of 7.4% by 2025. And the City expects a whopping 10% from Bank of Georgia in the same year.

There’s small company risk and overseas risk here. But they have to be worth a closer look, surely?

Reneweable energy

The renewable energy sector has gone out of fashion a bit, and a lot of stock prices have fallen. So I’m thinking that might give us a fresh chance to get in on Foresight Solar Fund and Greencoat UK Wind at cheaper valuations.

Their names pretty much give away what they do. Foresight invests in solar energy in the UK and Australia. And Greencoat runs a number of UK wind farms.

Profitable

Unlike a lot of ‘jam tomorrow’ alternative energy firms, these two are in profit. And they’re both forecast to pay rising dividends. Analysts put Greencoat on a 6.5% yield for the 2023 year, with Foresight on 8.2%.

It’s risky to rely on those valuations, especially without much of a track record to go on, mind.

And long-term valuation is tricky. For one thing, it’s not certain which new energy companies will win out. But for investors who go for the sector, these two look like good long-term buys, to me.

The post Dirt cheap UK dividend shares to buy before it’s too late? appeared first on The Motley Fool UK.

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Alan Oscroft has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Barclays Plc, Foresight Solar Fund, Greencoat Uk Wind Plc, Lloyds Banking Group Plc, and Primary Health Properties Plc. 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.