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Looking to become an ISA millionaire? I’d buy these 2 FTSE 250 dividend growth stocks

With the FTSE 250 having risen by just 10% in the last four years, there are a number of mid-cap shares that seem to offer good value for money at the present time.

Furthermore, a range of stocks could produce rising dividends over the long run. As such, their total returns could be highly impressive, which may increase your chances of becoming an ISA millionaire.

With that in mind, here are two mid-cap shares that seem to offer high potential returns in the long run.

Big Yellow Group

Self-storage specialist Big Yellow Group (LSE: BYG) released an encouraging update on Friday. Trading in the first quarter of its financial year was positive, with like-for-like occupancy moving to 85.1% from 83.3% in June 2018. This means that the company is on track to meet its objective of 90% like-for-like occupancy over the medium term.

With a pipeline of 13 potential stores that comprise around 19% of the company’s current maximum lettable area, it could generate improving financial performance in the long run. Although demand may weaken to some degree during the Brexit process, the company’s price-to-book (P/B) ratio of 1.5 suggests that this has been accounted for by investors.

Since Big Yellow Group has been able to deliver a rise in dividends per share of 53% during the last five years, its 3.5% dividend yield may become increasingly attractive over the long run.

Although there may be higher-yielding dividend stocks available elsewhere, the company’s potential to generate capital growth and an increasing bottom line could mean that its total return is higher than for many of its index peers. As such, now could be the right time to buy it for the long term.

easyJet

easyJet’s (LSE: EZJ) trading update released this week showed that the budget airline is on track to meet expectations for the full year. The company is, of course, facing challenging operating conditions that have contributed to weak investor sentiment. This has led to a falling share price, which saw it demoted from the FTSE 100 to the FTSE 250 in June after six years in the large-cap index.

In the short term, the stock could face further pressure on its valuation. Challenges such as weak consumer confidence are set to continue, and could lead to an increasingly cautious stance from investors.

However, with the company having a solid track record of growth, it could be well-placed to increase its position in what is set to be a growing budget airline sector over the long run.

Since easyJet has a dividend yield of 6.5% that is covered twice by profit, its income prospects seem to be bright. Meanwhile a price-to-earnings (P/E) ratio of 7.7 could mean that it offers a margin of safety which provides scope for an upward re-rating over the long run.

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Peter Stephens owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. 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.