The FTSE 250’s slide of recent days means that yields for many of the index’s best dividend shares have shot through the roof.
The FTSE 250 slumped 10% in September as worries over the UK economy mounted. In the panic many rock-solid stocks unfairly sold alongside weaker companies. This provides a great chance for opportunistic investors to nip in and grab a bargain or two.
Here are three top dividend shares on my radar today. Each provides a dividend yield north of the FTSE 250’s 3.5% average.
Centamin
Gold miner Centamin offers attractive all-round value right now. As well as a 5.4% dividend yield, the company’s forward price-to-earnings (P/E) ratio sits at just 8.2 times.
The profits of stocks like this are highly sensitive to price changes in commodities markets. In the case of Centamin, earnings could fall if the US Federal Reserve keeps aggressively hiking interest rates and gold prices slip.
On the flip side, a backdrop of high inflation and worsening economic conditions could drive gold prices higher. But regardless, as a long-term investor I’m tempted to buy Centamin for its ambitious growth programme.
The miner is investing heavily to produce 500,000 ounces of gold each year from its Sukari mine in Egypt over the next decade.
Quilter
As inflation soars people are trying to find better ways to protect themselves and their savings. And so demand for financial advice is soaring.
Some astonishing trading data from deVere Group caught my eye recently. It has seen new client enquiries balloon 25% year on year in the eight months to August.
Quilter — which previously went by the name of Old Mutual Wealth Management — is a share I’d buy to capitalise on the rush for advice. This is a consumer trend I think has plenty of room to grow too as people become more financially conscious and become more active in planning for retirement.
So even in the face of fierce competition I think the firm could still deliver terrific long-term profits growth. Today Quilter boasts a healthy 4.4% dividend yield.
Tritax Eurobox
Property stock Tritax Eurobox offers the biggest dividend yield out of the stocks I’m discussing here. For 2022 it sits at a FTSE 250-beating 7%.
This business invests in large warehouses and distribution centres in Europe. It currently owns more than 20 assets predominantly in Germany and Belgium. And demand for these sorts of properties is soaring because of strong e-commerce growth.
There aren’t enough of these properties to go around. And what’s more, the current development pipeline isn’t sufficient to keep up with the rates at which demand is tipped to grow, either. This means major operators like Tritax Eurobox can look forward to solid rent growth over the next five years at least.
I’d buy the business even though a shortage of acquisition targets could impact its growth plans.
