In a recent article, I ran the rule over three exceptional FTSE 100 income shares that could provide a very handsome second income stream. This time, I’ve delved into London’s second tier share index to find four more stocks that could help you to make a fortune.
A tasty selection
Dividend yields at Britvic may not be the biggest on the market — the readings for the years to September 2018 and 2019 stand at 3.4% and 3.7%, respectively — but those seeking reliable payout growth year after year can do a lot worse that to buy into the drinks leviathan.
Consumer spending may sometimes be volatile, but fast moving consumer goods (FMCG) manufacturers with star labels are better equipped to ride out such troubles. Britvic certainly falls into this category, thanks to its much-loved brands such as Robinsons, J2O and Pepsi, products that have helped earnings continue rising in recent years despite broader economic pressures in some of its markets.
Another brand beauty
AG Barr is another FTSE 250 share whose revered drinks labels such as Irn Bru are also expected to keep driving profits northwards for the foreseeable future.
The popularity of these labels was laid bare in latest financials this week in which AG Barr declared that revenues rose 5.5% in the six months to July, to £136.9m. This was despite a multitude of problems in the period, namely the “Soft Drinks Industry Levy implementation, reformulation, extremes of weather and CO2shortages, in addition to a dynamic consumer, customer and macro-economic environment.”
A 2.2% yield for the year to January 2019 may look a little low, but the probability of strong and sustained dividend growth still makes it a great pick, in my opinion.
Having said that, those on the hunt for giant yields today may want to consider buying into Tritax Big Box instead.
Under real estate investment trust rules, the business is told to pay out 90% of profits to its shareholders in the form of dividends. In an era where the fast-growing internet shopping phenomenon is driving demand for so-called big box logistics facilities, chances are that Tritax Big Box should continue building dividends year after year.
For the current fiscal year, the 12 months to December, this results in a chubby 4.6%. I’m convinced that Tritax Big Box’s best days are ahead, and I’m backing it to pay handsome returns to its shareholders in the years to come.
The 7%+ yielder
The final share I’m looking at is the biggest yielder of all: Stobart Group, a FTSE 250 stock that boasts an 7.4% dividend yield for the 12 months to February 2019.
The business disappointed investors this week with news that its rail and energy divisions have underperformed in the year to date. The update didn’t prompt intense selling activity by the market, and I’m not surprised. After all, the support services giant’s long-term profits outlook remains robust.
Indeed, Stobart’s latest statement underlined the brilliant profits picture for its aviation division in particular, as passenger numbers passing through London Southend Airport jumped 37% year-on-year from March to August. And the gangs of travellers are set to increase once Ryanair pitches up at the aviation base in the spring, and easyJet expands its operations there.