The Motley Fool

3 top FTSE 250 dividend stocks I’d buy right now

Image source: Getty Images.

Dividend stocks aren’t exactly covering themselves in glory right now. A whole host of previously big payers have cancelled their payouts due to Covid-19. Furthermore, I don’t think we’ve seen the last of them.

However, I reckon there are still a good number of companies capable of delivering dividends for investors. Among them are FTSE 250 firms Centamin (LSE: CEY), Primary Health Properties (LSE: PHP) and Greencoat UK Wind (LSE: UKW). Here’s why I like these three businesses, and their dividend prospects.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Dividend stocks: gold star

I’ve long been a fan of gold miner Centamin. Its Sukari mine in Egypt is a world-class, low-cost, long-life asset. This means it can make profits (and pay dividends) even at times when the price of gold is relatively weak. Its strong, cash-rich balance sheet and pipeline of future growth prospects add to the investment appeal.

The company took early action to maintain safe operations at Sukari. And it said last week: “As of 5 April 2020, Centamin has no recorded cases of Covid-19 on-site and has experienced no material disruption to operations, supply chain or gold shipments.

Highly attractive 5.8% yield

Centamin’s board told us in January it’s proposing a final dividend of $0.06 per share for 2019, which would bring the total for the year to $0.10 per share (8p at current exchange rates). At a share price of 137.6p, the yield is a highly attractive 5.8%.

Dividend stocks: property pick

Primary Health Properties owns a portfolio of modern primary health facilities in the UK and Ireland. I like the fact 90% of the group’s rent-roll is paid directly or indirectly by the UK and Irish governments. Because of this, it’s one of the most reliable dividend stocks around.

In a recent trading update, the company said it’s cash and undrawn loan facilities give it “significant liquidity headroom.” It also said: “The company intends to maintain its strategy of paying a progressive dividend.”

Primary Health paid 5.6p per share dividends in 2019, and has signalled 5.9p per share for 2020. This would extend its record of annual dividend increases to 24 years. At a current share price of 157.2p, the prospective yield is a solid 3.8%.

Dividend stocks: infrastructure income

Greencoat UK Wind is the leading London-listed renewable infrastructure investment company. It’s invested in 36 UK wind farms, most of which are wholly owned or majority owned. I see this as another relatively low-risk business, with reliable cash flows and dividends.

In a trading update on 20 March, management said portfolio generation year-to-date was 20% ahead of budget. And forward power prices for the remainder of the year are relatively stable. The update also added: “The target dividend of 7.1p per share is expected to be well covered.”

Inflation-linked payout

Since listing on the stock market in 2013, Greencoat has delivered on its aim “to provide shareholders with an annual dividend that increases in line with RPI inflation while preserving the capital value of the investment portfolio in real terms.” I expect this to continue, despite Covid-19.

At a current share price of 143p, the prospective dividend yield is 5%. This makes Greencoat another of my favoured dividend stocks to buy right now.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended Greencoat UK Wind and Primary Health Properties. 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.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.