2 top FTSE 250 dividend stocks I’d buy for my 2020 ISA right now

If you’re looking for dividend shares for your 2020 Stocks & Shares ISA, I think these two could provide growth potential too.

| 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.

Hand holding pound notes

Image source: Getty Images.

I’ve always liked Man Group (LSE: EMG), mainly as a long-term dividend investment. And Friday’s share buyback announcement has grabbed my attention. The share price has been volatile, typically swinging further than the FTSE 100 and FTSE 250 in both directions. But the hedge fund manager has been providing very attractive long-term returns.

In 2020 so far, the Man Group share price has fallen 25%. That’s lower than the two main indexes, both down 20%. But it does make the dividend look even more attractive to me right now.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

The yield has been varying as the share price fluctuates, even if the dividend level itself has been quite stable. In the past five years, we’ve seen yields from around 4% to as high as 7%. Current forecasts put yields for this year and next at 6%.

I think that’s enough justification to buy man Group for income, but I do think the shares are oversold in 2020 and too lowly valued too. The new share buyback would seem to indicate that the company thinks so too. The plan, to buy back up to $100m in shares, is “in line with the company’s policy to distribute capital to shareholders while maintaining a prudent balance sheet after taking into account required capital and potential strategic opportunities.”

I think that bodes well for the next few years for income from Man Group, and I’d buy.

Dividend plus growth

My second income pick is PZ Cussons (LSE: PZC), which has shown strong defensive characteristics. The firm supplies a wide range of cleaning products, and Covid-19 has certainly boosted demand for those. And while share prices are crashing around us, PZ Cussons shares have managed a 1% gain since the start of the year.

The company has suffered a few years of falling earnings, and the current year looks set to be no exception. Full-year results should be with us on 23 September, and Cussons has already told us: “Our full year profit guidance remains within consensus range, albeit at the lower end.

But the firm has maintained its dividend, which has remained covered by earnings. If the annual payment remains unchanged this year, we’d see a yield of 4% on the current share price. The first-half dividend was maintained, but that was before the pandemic hit. So we shouldn’t be over-confident, but forecasts suggest we’ll see no change.

Return to growth?

Those same forecasts indicate a return to earnings growth for 2021 and beyond. Now, the PZ Cussons share price valuation is not exactly at rock bottom. There’s a forward P/E of 18 for next year. But I think that reflects a growing confidence in Cussons’ refocused approach, and in this year’s new chief executive Jonathan Myers.

I’ve long seen PZ Cussons as an attractive long-term dividend investment. And with the share price down over five years, I’m seeing a renewed growth opportunity too.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended PZ Cussons. 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

Social media and digital online concept, woman using smartphone
Investing Articles

Apple stock: Buffett is long, Burry is short. What should I do?

Our author thinks about whether following Warren Buffet into Apple stock might be a good addition to his portfolio –…

Read more »

Close-up of British bank notes
Investing Articles

5 ‘no-brainer’ dividend shares to buy today

Is there an easy way to narrow down the list of FTSE 100 dividend shares? I try one approach, with…

Read more »

Close-up of British bank notes
Investing Articles

£5,000 to invest? 2 dividend-paying penny stocks I’d hold to 2030

I think these high-yielding penny stocks could help cushion the impact of high inflation on my returns. Here's why I'd…

Read more »

Renewable energies concept collage
Investing Articles

2 green stocks that I think are no-brainer buys for the future

Jon Smith explains two of his favourite green stocks at the moment, one for growth and the other for income…

Read more »

An airplane on a runway
Investing Articles

The Rolls-Royce Share price may be set for take-off!

After an upbeat Civil Aerospace Investor Day, here's why I think the Rolls-Royce share price could be set for take-off…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

2 beaten-down growth stocks to buy as inflation rises

Despite inflationary pressures and recession concerns, I am looking at some top growth stocks to solidify my portfolio over the…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Is the IAG share price too good to miss at current levels?

Jabran Khan delves deeper into the current state of play with the IAG share price and decides if now is…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

5 of the highest-paying income stocks compared! Which one is best for my portfolio?

Income stocks are certainly in vogue right now amid sky-high inflation. But which of these big dividend payers is the…

Read more »