Here are four FTSE 250 shares I’d buy for my portfolio with spare cash to invest. I think they could significantly boost my dividend income over the next 10 years.
Digital9 Infrastructure
Demand for telecoms infrastructure is increasing as the world becomes increasingly digitalised. This is what makes fund Digital 9 Infrastructure such an attractive share in my book.
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It is invested in sectors including data centres, wireless broadband networks, and undersea fibre. And its portfolio is centred around energy efficiency and greener infrastructure. This a fund therefore that could grow in popularity as ESG considerations become increasingly important for investors.
I’d buy Digital 9 shares even though a breakdown of its digital infrastructure could temporarily damage profits. The forward dividend yield here sits at 7.3%.
Target Healthcare REIT
Care home operator Target Healthcare REIT is a share I already own. Its 8.2% forward dividend yield means I’m considering adding more of it to my portfolio too.
Real estate investment trusts (or REITs) can be among the most reliable dividend providers out there. This is because of sector rules that oblige them to pay a minimum of 90% of annual earnings out in the form of dividends.
It’s true that a growing shortage of nurses is a black mark on Target Healthcare’s investment case. But I still think profits here could soar as an expanding elderly population supercharges demand for its services. It says that the number of people aged 85-plus could soar from 1.7m today to 3.3m by 2046.
Bank of Georgia Group
A 7.1% dividend yield for 2023 puts Bank of Georgia near the top of the FTSE 250 leader board. I’d buy it for long-term passive income as I reckon demand for its banking products will soar.
Financial product penetration in the emerging Eurasian market is low. At the same time, personal wealth levels in the country are rising strongly. This is a perfect combination that could drive Bank of Georgia’s profits through the roof.
Last year, the bank’s loan book grew 12.9% at constant currencies, ahead of its encouraging medium-term target of 10%. I’d buy its shares even though fierce competition from regional rival TBC Bank could damage profits.
Tritax Eurobox
Demand for big-box assets like warehouses and distribution hubs is tipped to grow as e-commerce increases. This bodes well for Europe-focused Tritax Eurobox which owns properties in major economies like Germany and Spain.
Analysts at Statista expect Europe’s online shopping sector to grow at an annualised rate of 9.98% through to 2027. Yet right now the construction pipeline for larger commercial properties suggests supply will fail to match this projected growth. So businesses like Tritax Eurobox can expect solid rental growth over the next decade.
I’d invest in Tritax Eurobox even though tough economic conditions could hamper profits in the near term. The business carries a 7.7% dividend yield right now.
