If broker forecasts prove correct, £10,000 invested equally across these FTSE 250 dividend stocks could provide a £1,260 passive income this year.
Here’s why I think investors should pay them close attention today.
Vistry Group
The UK housing market isn’t out of the woods just yet. The domestic economy is struggling to grow and unemployment is rising. Inflationary pressures also persist, casting doubt on when interest rates could fall.
Yet recent industry data suggests now could be a good time to invest in the housebuilding sector. Vistry Group (LSE:VTY) is one major industry player that income investors may wish to look at closely.
The company carries a 4.3% dividend yield for 2024. This is far ahead of the 3.4% average for FTSE 250 shares.
But this is not all. City analysts are expecting dividends to soar rapidly over the next few years, driven by double-digit earnings growth. This consequently drives yields close to 7%, as shown in the table below.
Dividend per share
Dividend yield
2024
50.4p
4.3%
2025
67.3p
5.7%
2026
80.2p
6.8%
According to Zoopla, mortgage approvals rose a whopping 32% year on year in February. The property listings provider says that new home sales are experiencing “a sustained upturn”, and predicted home sales of 1.1m in 2024. This would represent a 10% annual improvement.
As I say, the homes market could experience fresh turbulence, in turn putting Vistry’s dividend forecasts in danger. Dividend cover of 1.8 times for 2024 sits below the accepted security benchmark of 2 times.
But the prospect of explosive dividend growth over the next few years still make the builder one to watch.
Supermarket Income REIT
Real estate investment trusts (REITs) like Supermarket Income REIT (LSE:SUPR) can also be great income stocks to buy. I like this one because its 8.3% forward dividend yield is one of the biggest out there.
Under REIT rules, these companies most pay 90% or more of their yearly annual rental profits out by way of dividends. This is in exchange for them not having to pay corporation tax.
On the downside, these property stocks could endure more share price trouble if swingeing interest rate cuts fail to materialise. This would keep net asset values under pressure and borrowing costs above normal levels.
But on balance, I think Supermarket Income is a rock-solid dividend share to own. Its focus on the ultra-stable British grocery market means earnings remain broadly stable at all points of the economic cycle.
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And today (29 April) it announced plans to diversify its operations by entering the French retail sector. The decision to acquire 17 stores from Carrefour reduces the risk of profits turbulence still further.
As with Vistry, dividends at this REIT are also tipped to grow over the next three years. And so the dividend yield rises to 8.4% and 8.5% for 2025 and 2026, respectively.
The post 2 FTSE 250 shares investors should consider for a £1,260 passive income in 2024 appeared first on The Motley Fool UK.
Like buying £1 for 31p
This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
See the full investment case
More reading
2 FTSE 250 stocks to consider buying for powerful passive income
8%+ dividend yields! 3 FTSE 250 shares for investors to consider buying in April
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.
