I’m searching for the best FTSE 250 dividend shares to buy in 2023. Here are two income picks I think could supercharge my passive income over the long term.
Clarkson
Cyclical businesses like shipbroking services supplier Clarkson (LSE:CKN) face falling demand in 2023, as the global economy cools. In this case, slowing trade flows could hammer demand for ships.
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But so far the company has been able to sail through these macroeconomic headwinds. On Friday it announced “strong trading throughout the final quarter” of 2022 and that profits would subsequently beat market expectations.
A structural shortage of available vessels is supporting profits at brokers like this. Thanks to weak new ship orders in recent years, this shortfall looks set to persist, too.
City brokers expect Clarkson’s earnings to keep rising over the short term as a result. And they think annual dividends will keep rising strongly too (a 4% rise to 93.1p per share is predicted for 2023).
So Clarkson carries a healthy 2.9% dividend yield for this year. Encouragingly, this predicted dividend is covered 2.3 times by anticipated earnings, too.
I think Clarkson is a great way for investors to make money from long-term growth in the global economy. I expect its share price to bounce back strongly from its 13% decline over the past year.
Tritax EuroBox
Tritax EuroBox’s (LSE:EBOX) share price has fallen even more sharply recently. In fact, it’s down a whopping 44% during the past 12 months. As a consequence, the property company sports an enormous 9.4% dividend yield for this financial year (to September 2023) based on current forecasts.
As a dividend investor, I find this sort of sky-high reading hard to ignore.
The FTSE 250 firm operates warehouses and logistics hubs in major European economies including Germany, France and Spain. It’s fallen as worries over these countries entering deep recessions have grown, conditions that could damage demand for commercial properties like these.
Tritax EuroBox has also fallen on speculation that the e-commerce bubble has burst. Lower online retail activity would be especially damaging for this part of the property sector.
But as a long-term investor I think the company’s share price collapse provides an attractive dip buying opportunity. The development pipeline in the ‘big box’ property market remains extremely weak and internet shopping is tipped to keep growing strongly. This means rental income at Tritax Eurobox should continue marching steadily higher.
Analysts at Statista think the European e-commerce market will expand at a compound annual growth rate (CAGR) of 10.6% between 2023 and 2027. This suggests real estate companies like this could be terrific investments for long-term passive income.
I don’t have unlimited reserves of cash I can use to invest. But with money to spare, I’ll be looking to add Clarkson and Tritax EuroBox to my portfolio this year.
