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.

| 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.

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer

Image source: Getty Images

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

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 assessed. 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.

More on Investing Articles

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

The JD Sports share price is down 18% in a year. And the stock’s only yielding 1.1%. Here’s what I’m doing…

With the JD Sports share price struggling and a tiny dividend on offer, there doesn’t appear to me much going…

Read more »

Passive and Active: text from letters of the wooden alphabet on a green chalk board
Investing Articles

How long would it take an owner of Legal & General shares to get their money back in passive income?

Our writer looks at the passive income potential of Legal & General, one of the highest-yielding shares on the FTSE…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Small but mighty: 2 FTSE 250 growth shares beating expectations

Mark Hartley picks out two lesser-known FTSE 250 shares delivering outstanding earnings growth – but with share prices that are…

Read more »

ISA Individual Savings Account
Investing Articles

Stocks and Shares ISA: is lump-sum investing better than pound-cost averaging?

Is it better to invest in a Stocks and Shares ISA all at once or drip-feed with pound-cost averaging? Mark…

Read more »

4 Teslas in a parking lot at a charger station
Investing Articles

Is this an unmissable opportunity to buy Tesla stock?

Tesla stock appears to be nearing a pivotal moment as its autonomous ambitions either become reality or fail to impress.

Read more »

Black woman using smartphone at home, watching stock charts.
Investing Articles

Up 140% in 2025, I think this could be among the best UK momentum stocks to consider

Momentum investors could enjoy substantial returns by buying UK gold stocks like this Alternative Investment Market (AIM) star.

Read more »

Thoughtful man using his phone while riding on a train and looking through the window
Investing Articles

2 cheap AIM shares to consider for the new commodities supercycle

Soaring gold and copper prices have put the spotlight back on UK mining stocks. Here are two AIM shares I…

Read more »

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

Up 10% in a day, this FTSE 250 stock still looks undervalued to me

Jon Smith explains why a FTSE 250 finance stock has soared higher and flags up reasons why this might not…

Read more »