Buying on the dip is one of legendary investor Warren Buffett’s favourite strategies. And in 2022 I took advantage of stock market volatility to buy beaten-down shares across the FTSE 100 and FTSE 250.
If share prices slump again next year I’ll be looking for more top stocks to buy. As someone who invests for the long haul like Buffett, I think such a strategy could also supercharge my eventual returns.
Here are two FTSE 250 dividend shares I’ll be looking to buy more of during 2023. They are companies I’m aiming to never sell.
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Games Workshop Group
I used weakness in the Games Workshop (LSE:GAW) share price to boost my holdings during the summer. I’ve been rewarded by watching the fantasy wargaming firm soar in value in recent days.
The Warhammer manufacturer started with one shop in Hammersmith, London, back in 1978. Now it has more than 500 spanning the globe and there is scope for more aggressive expansion.
This year alone it plans to open 15 in North America, five in Europe, and one in Asia. The latter store will be the company’s first major store in Japan too.
Despite the threat from 3D printers, the global fantasy battle market remains packed with growth potential. And Games Workshop is aiming to further stimulate demand for its games, miniatures and its books by licencing its intellectual property (IP) to major media producers.
Last week, it signed an agreement in principle with Amazon to bring its Warhammer universes to the small (and maybe even the big) screen. This could take the FTSE 250 firm’s profits to the next level by supercharging royalty income and boosting demand for its miniatures.
I also like Games Workshop because of its ability to generate mountains of cash. In particular, I’m excited to think of the benefits this could bring to my passive income.
City analysts are expecting healthy dividend growth over the next few years, at least. So the company boasts healthy yields of 2.9% and 3.1% for the financial years to May 2023 and 2024 respectively.
Primary Health Properties
Primary Health Properties (LSE:PHP) is another UK share I bought this year for dividend income. In fact, this FTSE 250 stock is a real dividend hero — it’s raised shareholder payments for 25 years on the spin.
PHP’s dependable rental incomes allow it to pay healthy dividends year after year. It owns and operates primary healthcare facilities in the UK, a recession-proof sector where rents are also guaranteed by government bodies.
Any changes to NHS policy could derail earnings growth. But right now, things look bright for the real estate investment trust (REIT). The UK’s booming ageing population means demand for new healthcare facilities is rapidly increasing.
PHP’s dividend yields sit at 6% for 2022 and 6.2% for next year. I plan to hold the dividend aristocrat in my portfolio for the rest of my life.
