2 FTSE 250 dividend shares I’d buy to hold for 20 years!

I’m searching for the best FTSE 250 stocks to buy for terrific long-term returns. Here are a couple I think might be too good to miss.

| 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.

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.

I don’t have limitless reserves of capital to spend on UK shares. But here are two FTSE 250 dividend stocks I’m aiming to buy in 2023 with cash to spare.

NCC Group

The world is becoming increasingly digitalised. This leaves huge opportunities for private and state-sponsored hackers to exploit in the future.

Just today Ukraine announced that cyberattacks had jumped threefold in the past year. This follows a massive cyberattack last week at Royal Mail that stopped it sending parcels overseas.

Businesses and organisations are having to spend increasing sums to protect themselves from online attacks. This could make NCC Group (LSE:NCC) one of the hottest growth stocks out there as demand for software escrow services soars.

In short, such services involve storing the source code and data that allow essential applications to run. This means that companies can continue operating efficiently even in the event of a cyber incident.

NCC is a share I’ve added to my watchlist following recent trading news. The IT giant said in November that constant currency revenues at its Global Assurance division continue rising by double-digit percentages. I added that “this growth is accelerating” as the financial year progresses, too.

As a potential investor I’m also encouraged by NCC’s ambitious expansion strategy. Last month it secured £162.5m in fresh borrowing facilities to fund organic and inorganic investment. This should further boost sales opportunities in its fast-growing market.

City analysts think earnings will rise 18% in the 12 months to May 2023. They predict solid growth further out as well (annual rises of 12% and 11% are forecast for financial 2024 and 2025 respectively).

NCC operates in a highly competitive industry. And this presents a risk to future earnings. But I still think the business should still deliver excellent long-term returns, driven by robust cybersecurity market growth.

Assura

I’m seeking ways to boost my passive income in 2023. So I’m also thinking of adding real estate investment trust (REIT) Assura (LSE:AGR) to my portfolio.

This is thanks in part to the company’s ultra-defensive operations. It lets out primary healthcare facilities, the sorts of properties that are in constant use during all points of the economic cycle. So even as the UK experiences a downturn, the rents Assura receives — which are also backed by government bodies — should keep on rolling in.

I believe the FTSE 250 business could provide me with an excellent second income over the long term, too. This is because demand for healthcare facilities looks to be on course to grow strongly as the country’s elderly population steadily swells.

Under REIT rules, Assura is required to pay at least nine-tenths of annual profits out in the form of dividends. As a consequence the firm carries bulky dividend yields of 5.6% and 5.8% for the financial years to March 2023 and 2024 respectively.

I’d buy the REIT for my portfolio despite the threat that NHS policy changes could pose to future profits.

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 recommended NCC. 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

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

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

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »