2 cheap FTSE 250 dividend stocks to buy!

I think stock market volatility provides a great opportunity to nab a bargain. So I’ve been searching for the best FTSE 250 dividend stocks to buy in recent days.

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I think these FTSE 250 dividend stocks could help me make extra cash. Let’s dive straight in and take a look.

Bank of Georgia Group

Price: £15 per share
Dividend yield: 8.7%

Bank of Georgia (LSE: BGEO) could be in for a rough time in the near term as the global economy splutters. And this particular bank could be viewed as more risky than other banking shares too.

This is on account of how important a strong Russian economy is to Georgia. Right now, the slapping of sanctions on Moscow represents a significant indirect risk to cyclical shares like Bank of Georgia.

However, it’s my opinion that the dangers facing the bank are more than reflected in its low valuation. Today, it trades on a price-to-earnings (P/E) ratio of just 3.3 times. This is massively lower than the multiples of 7 times and 9 times UK-focused Lloyds and NatWest trade on respectively, for example.

I’d certainly rather buy Bank of Georgia than those FTSE 100 banks. Britain’s economy is facing increased headwinds and the The Organisation for Economic Co-operation and Development (OECD), for example, is predicting zero growth for 2023.

I also think the Georgian banking market provides better long-term opportunities than the UK. Financial product penetration in the Eurasian nation is super low. And it looks set to grow strongly from this low base as personal wealth levels sharply rise.

The Renewables Infrastructure Group

Price: 135.8p per share
Dividend yield: 5.2%

Increasing my exposure to green energy has been an aim of mine for some time. So following recent market volatility, I decided to invest in renewable energy stock The Renewables Infrastructure Group (LSE: TRIG).

I chose this energy producer because it has added strength through various levels of diversification. Its portfolio comprises solar, wind and battery storage assets. It therefore offers me protection if one form of renewable energy becomes less profitable. I also like the fact its assets are spread out across Europe. This means profits aren’t vulnerable to adverse conditions in one or two regions.

The problem with investing in renewable energy stocks is the expensive nature of their operations. Keeping turbines and photovoltaic panels in tip-top condition can cost a lot of money, and especially as extreme weather events become more regular.

Still, I believe the potential rewards of owning TRIG shares as demand for green energy rockets offsets the risk that high costs pose to returns. The International Agency thinks wind energy generation will need to rise 18% a year between now and 2030 under current net zero targets.

In fact, I’m thinking of adding more TRIG shares to my portfolio given the cheapness of its shares today. As well as offering a huge dividend yield the business trades on a forward price-to-earnings growth (PEG) ratio of just 0.5. Any reading below 1 suggests a stock is undervalued.

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 considered so you should consider taking independent financial advice.

Royston Wild owns shares in The Renewables Infrastructure Group. The Motley Fool UK has recommended Lloyds Banking Group. 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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