3 FTSE 250 dividend stocks to buy and hold for the next 50 years
These three top FTSE 250 shares are going from strength to strength. They offer big dividends now and I’m tipping them to continue doing so. Why not take a look?
A golden choice
It’s a popular conviction in investing circles that having exposure to gold is a good idea. If the world goes to hell in a handcart, at least savers can take comfort in the yellow metal, a much-loved safe-haven commodity for millennia.
One great way to get bullion exposure is to buy shares in FTSE 250 mining Goliath Polymetal International (LSE: POLY).
Firstly, it can be snapped up for next to nothing, the company carrying a forward P/E ratio of just 9.1 times. Secondly, Polymetal carries inflation-smashing dividend yields of 5.4% and 6.9% for 2018 and 2019 respectively. And lastly, City analysts expect earnings growth to click through the gears in the next couple of years (a predicted 4% rise for this year is anticipated to jump to 27% in 2019).
The number crunchers remain resolute over gold prices for the next couple of years at least. Added to the steps the Russian miner is taking to boost production, the profits outlook is looking better and better.
Flying high
BBA Aviation (LSE: BBA) is another company from Britain’s second tier share index that I’m tipping for great things.
I’ve talked before about the transformative acquisitions it has made to bolster its fixed base operation (FBO) network across the world, and I said that it shouldn’t be long before BBA embarks on fresh M&A action. So it has come to pass with the business buying aftermarket service provider Firstmark for $97m earlier this month, a move that boosts the company’s position on the East Coast of the US.
BBA may be expected to endure some little earnings turbulence in the near term, a 6% slip currently being forecast for this year by the City. But it’s expected to come roaring back with a 12% rise in 2019, and I’d bet that its ambitious expansion programme should keep earnings sailing broadly higher in the years ahead.
A forward P/E ratio of 17.1 times may be a little expensive. However, juicy dividend yields of 3.7% and 3.9% for 2018 and 2019 respectively help to take the edge off.
Build a fortune
My final pick for this article is Morgan Sindall Group (LSE: MGNS). Earnings growth is expected to continue through the medium term at least, with rises of 19% for 2018 and 1% for next year currently being anticipated by City boffins. This gives rise to a rock-bottom forward P/E multiple of 9.5 times as well as predictions of further dividend growth. Thus dividend yields sit at a chubby 3.7% and 3.9% for this year and next respectively.
It doesn’t require a huge stretch of the imagination to see dividends continuing to rise beyond this period either. Steps to improve the quality of earnings have helped margins to detonate at its core Construction and Infrastructure division, up 60 basis points to 1.7% between January and June, and there’s still more upside to be had.
When you consider the excellent revenues opportunities at its Urban Regeneration arm too, I reckon Morgan Sindall is a share that should keep providing excellent sustained earnings and dividend growth long into the future.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended BBA Aviation. 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.
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