Stock market

With an 8% dividend yield, I think this cheap FTSE 250 stock could be one not to miss.

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I count 15 stocks. FTSE 250 With expected returns of 8% or above. And it only has five. FTSE 100 with large production (and one of them, Vodafonewill reduce it next year).

But isn’t the FTSE 100 considered the top dividend income index, while the FTSE 250 is the place to go for growth?

Things definitely look upside down. And I think the market could very well undercut FTSE 250 shares.

Top pick?

Can supermarkets generate income for shareholders for decades to come? Are Real Estate Investment Trusts (REITs) Unfairly Suffering From Today’s Real Estate Shortage?

I say yes to both of them. And it can make. Supermarket Income REIT (LSE: SUPR) Buy a low price for my Stocks and Shares ISA.

It has declined since 2022, down 25 percent over the past five years. But the forecast dividend yield is up to a tepid 8.1%.

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what does it do

The business model is quite simple. The trust invests in high quality supermarket property, and receives rental income. And it also aims for capital growth, as property values ​​are expected to rise over the long term.

The biggest risk I see is in the ballooning share count, as the trust has raised equity finance. It has fallen too far, and fears of more could keep the share price weak.

Oh, and debt financing has also been substantial, as is common with REITs.

But that hugely profitable product, from a company that aims to “Secure, inflation-linked, long-term income from grocery property in the UK“Can make the risk worth taking.

More FTSE 250 yields

It’s on my mind. ITV Even its forecast dividend yield, at 6.3%, is outside the 8% club.

But forecasts show a strong core in terms of revenue over the next few years. And projected earnings growth could push the price-to-earnings (P/E) ratio below nine by 2026.

After the hike in 2024, shares may look fully valued on historical earnings. And we won’t really see if ITV pulls off the revival for a while yet.

But ITV joins my list of 2024 dividend stock candidates.

changing winds

Others include Greencoat UK Wind. Shares are down from 2022 peaks. But that means a forecast 7.2% yield.

Who will win the renewable energy race is a big question. But this is big business, and Greencoat is in with a shout. And we can see sustainable growth in profits from 2025 onwards.

More than 8% of forward yields include the yields of investment firms. abrdn (9.3%) and The Ashmore Group (8.5%). And the home builder Crest Nicholson Holdings Offers 8.1%.

This looks like a great time for FTSE 250 dividend investors.


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