2 FTSE 250 dividend growth stocks I think could help you get rich, retire early and beat the State Pension

Royston Wild explains why he thinks these FTSE 250 (INDEXFTSE: MCX) income heroes could make you wealthier come retirement.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

It’s a tricky business trying to find stocks that can deliver top shareholder returns right up until you or I decide to retire.

Ten years ago, tobacco stock Imperial Brands, grocery colossus Tesco and energy supplier Centrica were at the top of their game and reliable generators of great shareholder value. Yet these firms are now putting out distress signals amid the onset of some serious structural challenges more recently. How quickly things can change.

While nothing’s certain when it comes to investing, clearly, there are still plenty of shares making great progress and looking likely to continue doing  so. I believe Assura (LSE: AGR) is one such stock in great shape to thrive in the decades ahead. Britain’s rapidly-ageing population means that demand for quality primary healthcare facilities is becoming stronger and stronger, a point illustrated by the extra £1.8bn cash boost that the government pledged to the NHS just this week.

And Assura’s exploiting this trend to the fullest through aggressive expansion (it now has more than 550 GP surgeries and other healthcare properties on its books).

Investing for success

Our immediate pipeline of developments and acquisitions has never been stronger,” chief executive Jonathan Murphy commented last month, and the FTSE 250 firm certainly has the financial strength to keep adding to its bulging property portfolio. It has undrawn loan facilities of £230m and a healthy cash balance of around £50m.

A blend of terrific share price growth and healthy dividend growth means that Assura has delivered a total shareholder return of 75.6% over the past five years. And on the dividend front, City brokers expect the healthcare giant to keep impressing, with expectations of more hikes for the fiscal years ending March 2020 and 2021 resulting in chunky yields of 4.3% and 4.5% respectively.

6% dividend yields

Who would bet against Cineworld Group (LSE: CINE) — which has delivered a shareholder return of 131% during the last five years — from continuing to thrive in the decades ahead?

The magic of the cinema is something that hasn’t faded since the world’s first picture house (the ‘Nickelodeon’ in Pittsburgh, if you’re asking) was opened in 1905. Over the past century, we’ve seen the mass adoption of other forms of media like radio, television and the internet, and yet cinema has stood the test of time. In fact, recent box office data shows that our love of the big screen is stronger than it’s ever been before.

And like Assura, Cineworld is rapidly expanding its physical footprint to capitalise on the growing market, as illustrated by its game-changing move into the US a year ago.

In the meantime, analyst expectations of more dividend increases mean that for 2019 Cineworld boasts a 5.6% dividend yield. a figure which improves to 6% next year. Big dividends are one reason why I own the share, and I fully expect it to remain a brilliant income generator for many years to come.

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 owns shares of Cineworld Group. The Motley Fool UK has recommended Imperial Brands and Tesco. 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.

More on Investing Articles

Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.
Investing Articles

Down 5% despite good Q1 results, is now the time for investors to consider Sainsbury’s shares?

Supermarket giant Sainsbury’s released solid Q1 results on 1 July, but is down 5% from its one-year traded high, so…

Read more »

Electric cars charging in station
Investing Articles

Warren Buffett’s electric vehicle stock is smashing Tesla shares in 2025

Warren Buffett doesn’t get enough credit for owning this top-performing electric vehicle stock. In recent years, it’s been a brilliant…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

Here’s how investors could target £5,174 a year in passive income from £5,000 in savings invested in this FTSE 100 gem…

This often overlooked FTSE 100 savings and investment giant has an ultra-high yield of 8.4%, which can generate enormous passive…

Read more »

Asian man looking concerned while studying paperwork at his desk in an office
Investing Articles

A profitable penny stock with a well-covered 8% dividend yield! What’s the catch?

Mark Hartley dives into a rare penny stock that offers an 8% dividend yield, investigating whether it deserves a place…

Read more »

Close-up as a woman counts out modern British banknotes.
Investing Articles

I slashed my monthly expenses by £300 to help me aim for a steady second income stream of £20k

This Fool's saving an extra £300 a month and investing it in a portfolio of dividends stocks to power his…

Read more »

Workers at Whiting refinery, US
Investing Articles

Come on Shell! Here’s why you could consider buying BP shares…

Following takeover speculation, James Beard’s put together a letter to Shell’s boss explaining why the energy giant could consider buying…

Read more »

National Grid engineers at a substation
Investing Articles

National Grid shares: a £1,000 investment 5 years ago is now worth…

National Grid shares are on the rise! Here’s how much money investors have made so far… and how much they…

Read more »

Close-up of children holding a planet at the beach
Investing Articles

Vodafone shares: a £1,000 investment 5 years ago is now worth…

Vodafone shares have underwhelmed since 2020, but could the stock be on the verge of an explosive comeback? Here's what…

Read more »