3 FTSE 250 dividend kings I’d buy today and never sell

Royston Wild discusses three FTSE 250 (INDEXFTSE: MCX) income shares he’d buy today and hold forever.

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It’s something of a surprise to see that the Hays (LSE: HAS) share price has taken a pasting in the wake of fresh quarterlies released last week.

The good news, though, is that this nosedive to three-month lows provides a great opportunity for dip buyers to nip in and grab a bargain — right now the FTSE 250 firm trades on a dirt-cheap forward P/E ratio of 12.4 times and it carries a gigantic 6.1% corresponding dividend yield too.

Look, the recruitment provider isn’t totally immune to the slowing German economy or tough construction markets in Australasia, and net fees growth dropped to 6% in the quarter ending March from 9% in the prior three months.

But there was still plenty to celebrate in the release last week. Net fee growth was still impressive considering the tough comparatives of a year earlier, and there was stunning progress in some of its other territories (including record quarterly results in eight of its markets).

A final shot: these Q3 results provided an extra nugget for income seekers to celebrate. Hays’ position as a cracking cash creator is well known and net cash swelled to £30m as of June, up from £5m a few months earlier and giving that little more beef to its progressive dividend policy.

Dividends still travelling higher

National  Express Group (LSE: NEX) is another dividend share I’ve long championed because of the booming profits it’s generating in foreign climes, progress which is due in no small part to its great track record of acquisitions.

So news that the transport operator was at it again this month by acquiring a majority stake in US-based employee shuttle company WeDriveU was fresh cause for celebration. The business serves some of Silicon Valley’s biggest companies and provides some excellent growth opportunities across the rest of North America.

City analysts certainly don’t expect National Express’s recent history of earnings growth to cease any time soon, and so dividends are anticipated to continue storming higher as well. For 2019, this results in a chunky 4% yield.

9% dividend yields!

If you’re looking for truly heart-stopping yields, though, you might want to check out Bovis Homes Group (LSE: BVS).

The size of the UK housing market’s supply and demand gap means that sales of new-builds should keep on tearing higher long into the future. The construction colossus is taking steps to boost its position in the social housing segment too, and this month entered a joint venture with Riverside to build a massive new development near Wellingborough, Northamptonshire, which will consist of more than 3,600 homes.

A bright profits outlook and the ability to also throw out shedloads of cash means that the homebuilder is dedicated to continuing to supply shareholders with special dividends, and this means that for 2019 the yield sits at a gargantuan 9.1%. At these levels I reckon Bovis is hard to overlook.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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