It’s an exciting time for investors looking to generate a supersized passive income from UK shares. I can see plenty of stocks yielding 7%, 8% or even 9%, and many have delivered lots of growth too lately. These three FTSE 250 stocks jumped out at me. Are they worth considering today?
Ashmore Group shares yield 7.35%
Specialist emerging markets fund manager Ashmore Group (LSE: ASHM) endured a rotten 15 years as it was hammered by the rotation away from emerging markets after the financial crisis. As interest in the BRICs (Brazil, Russia, India and China) cooled, so did Ashmore’s performance. Long-term investors had one consolation. As the shares fell, the yield rocketed.
The income regularly topped 10%, even though Ashmore has only increased shareholder payouts once since 2015. That year, it paid a dividend per share of 16.65p. Ten years later, it’s crept up to just 16.9p.
With investors captured by US tech, there wasn’t much Ashmore could do. But last year, markets tired of the overpriced Magnificent Seven and took a return trip to the Far East. The result was instant, with the Ashmore share price up almost 75% in the last year.
That growth spurt has inevitably shrunk the yield but it’s still 7.66% on a trailing basis. I’m not expecting any dividend increases. In February, the board held the interim 2026 first-half payment at 4.8p, where it’s been since 2020. Given the high yield, it’s hard to complain. The shares are no longer cheap, with a price-to-earnings ratio of 18.1. But not too expensive.
Ashmore posted a solid set of first-half results on 12 February, with assets under management up 10% to $52.5bn, following stronger inflows, subscriptions and investment performance. Pre-tax profits jump 64% year on year to £81.9m.
Ashmore has been hit by its exposure to Venezuelan debt, and remains at the total mercy of emerging markets sentiment. There’s not much it can do if that cycle reverses again. But I think it’s worth considering for income-focused investors looking for a little diversification, and willing to take a long-term view.
More great dividends out there
FTSE 250 investment trust Henderson Far East Income also caught my eye. I actually held this around 20 years ago, then sold in a fit of youthful impatience. Today it has a blockbuster trailing yield of 9.6%, and the shares are up 27% in a year. It’s also been fired up by the cyclical swing back to Asia. The shares still trade at a 10-year low.
The trust faces similar cyclical risks to Ashmore, but has a far better track record of increasing dividends. It’s hiked them every year this millennium. Well worth considering for income seekers wanting diversification. I might take a return trip myself.
FTSE 250 fund manager Aberdeen is also focused on emerging markets, and has been hit by the same broader trend. It’s had even bigger worries, dealing with the fallout from the ill-fated 2017 merger between Standard Life and Aberdeen Asset Management.
It’s also on the mend with the shares up 44% in the last year, yet the trailing dividend yield remains a healthy 7.2%. I wouldn’t suggest buying all three FTSE 250 stocks, as they’re exposed to similar risks, but they’re worth considering individually.
