I’m searching for the best FTSE 250 dividend shares to buy for my portfolio. Here are two I think will generate spectacular passive income for years to come.
Based on broker projections, £20,000 evenly split between them today would create £1,640 of yearly passive income. Remember that City forecasts aren’t guaranteed, however.
Bank of Georgia Group
Dividend yield: 9.4%
Should you invest £1,000 in Bank of Georgia right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bank of Georgia made the list?
Banking shares are popular with people looking to boost their dividend income. But I’m not tempted like many retail investors to go shopping on the FTSE 100 for the likes of Lloyds or NatWest.
I’d rather invest in emerging-market-focused Bank of Georgia (LSE:BGEO). The banking sector in this Eurasian market has room for considerable growth due to low product penetration and soaring personal wealth levels. The firm also doesn’t have to face intense levels of competition like its UK peers.
Latest financials illustrate the incredible growth potential here. Operating income soared 42.4% during the first quarter while profit jumped by more than a quarter. Even as interest rates continued rising, total loan growth increased 13.8% at constant currencies.
Since the mid-2010s, Georgia’s banking sector has undergone significant transformation to improve financial governance and stability. It’s now a much more attractive place for investors to park their cash. I’d buy Bank of Georgia shares even though an economic downturn could impact revenues in the near term.
ITV
Dividend yield: 7%
Broadcasting giant ITV’s (LSE:ITV) share price continues to fall. Its descent reflects ongoing worries over the global economy and the prospect of prolonged weakness in advertising revenues.
I believe this provides a tasty dip-buying opportunity for long-term investors. I’m especially attracted by the steps it’s taking to build its world-class ITV Studios production division. This could supercharge profits growth over the next decade.
Streaming companies like Netflix and Amazon are hungry for top content as they compete for subscribers. And ITV is looking to capitalise on this by embarking on a steady stream of acquisitions. The business already has a hot slate of winners on its books including Love Island, Line of Duty and I’m A Celebrity...Get Me Out of Here!
Last month ITV announced it was actively exploring the purchase of All3Media to boost its production unit. All3Media is best known for hits Fleabag and The Traitors.
ITV also seems to be on to a winner following huge investment in its own streaming operations. Its new ITVX platform that launched in December has picked up where the ITV Hub left off, with streaming hours and digital revenues here rising 49% and 29% during the first quarter.
The firm’s impressive momentum in the streaming stakes bodes well as viewer habits change and people migrate to video on demand. PwC has forecast that Britons will spend more on paid-for streaming services than they do on traditional TV packages as soon as 2025.
