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Could this FTSE 250 7% yielder make you a fortune?

For those scouring the FTSE 250 for terrific dividend shares I believe Jupiter Fund Management (LSE: JUP) could be the contrarian corker to make you rich.

The asset manager has been able to deliver brilliant market-mashing payouts over many years, thanks to its long record of unbroken earnings expansion. And with the City’s team of analysts predicting this perky profits story to continue — rises of 4% and 6% are forecast for 2018 and 2019 respectively — dividends are expected to keep on impressing.

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For this year, a 31.2p per share reward is anticipated, resulting in a colossal forward yield of 7%. And thanks to the 32.9p dividend estimated for 2019 the yield jumps to a barnstorming 7.3%.

And to reinforce Jupiter’s investment case, the company deals on a forward P/E ratio of 12.6 times, some way inside the widely-regarded value watermark of 15 times and below.

Hold your nerve

Now, Jupiter has seen its share price collapse in 2018 as fears of slowing business activity have gathered a head of steam. It has lost 30% of its value since the peaks of the year above 630p per share punched back in January.

The company’s latest financial release last week did little to soothe these concerns either, in which it advised that “a period of market turbulence together with subdued demand” during January-March had caused yet more hefty outflows.

Despite current trading turbulence, however, I remain convinced Jupiter should have what it takes to make shareholders a fortune in the years ahead. While market confidence in the global economy is somewhat patchy right now, I am sure that Jupiter’s ongoing steps to diversify its product offerings and its geographic scope should facilitate bumper returns once investor sentiment starts to pick up again.

Dividends flowing higher

Another big-yielding FTSE 250 share worthy of a look today is Pennon Group (LSE: PNN). The business of water management is about as defensive as you can get, and this makes the company an ideal selection for those seeking dividend expansion year after year.

Reflecting these aspects, City brokers expect Pennon to report earnings growth of 10% in both the years to March 2019 and 2020. And as a result, dividends are expected to keep marching skywards as well.

A 38.5p per share payout is expected when the utilities giant reports for fiscal 2018, and this is anticipated to move to 41.4p this year and again to 44.3p in the following period. These estimates mean Pennon boasts chunky yields of 6.3% and 6.8% for this year and next respectively.

Strong profits and dividend growth are not the only things it has in common with Jupiter either as a forward P/E multiple of 12.3 times makes the company a great value pick relative to its anticipated growth trajectory. And this low reading more than bakes in the uncertain regulatory outlook facing Pennon today.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Pennon 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.