It’s mighty tempting for dividend investors to storm right into the FTSE 100 without a second thought.

Aside from the prestige that comes with holding stock in some of Britain’s most distinguished blue-chips, dividends from London’s elite index continue to hit record after record and are predicted to continue doing so for some time yet.

It’d be a mistake, though, to limit your shopping basket by not forensically foraging outside the Footsie for other great income stocks. With this in mind I’ve searched the FTSE 250 for some big dividend payers that could deliver some stunning returns in the years ahead. 

In great health

I like Assura (LSE: AGR) a lot. For income chasers it offers that essential quality of reliable earnings growth year after year thanks to its role in the healthcare sector (it designs, builds and manages primary healthcare properties the length and breadth of the country).

It remains committed to growth and thanks to its robust balance sheet the business is able to embark on an aggressive expansion drive. In 2018, Assura splashed out a total £175m to secure 45 new medical centres and develop two further assets, taking the total number of healthcare facilities on its books to a whopping 553 with a total annualised rent roll of £99.8m (versus £87.4m a year earlier).

Encouraged by its expansion drive and the defensive nature of its operations, City brokers expect Assura’s profits to keep growing over the next few years at least, thus keeping the firm’s long-running record of dividend growth up and running. And this means that the healthcare star sports an inflation-smashing yield of 4.6% for this year alone.

Turn the page

If you’re hunting for bigger near-term yields, though, then PageGroup (LSE: PAGE) may well be right up your street.

City analysts are expecting earnings at the recruitment giant to keep rising by double-digit percentages in 2019, laying the groundwork for predictions of more weighty dividend growth and thus a gigantic 6.4% yield.

I’ve long talked up PageGroup’s investment appeal because of its exposure to fast-growing economies around the globe and I was pleased to see that January’s trading update revealed more of the same.

Sure, tough economic conditions in the UK are hampering performance in its home territory and gross profit fell 1.7% in 2018. However, stunning growth elsewhere — PageGroup produced record results in 23 countries in which it operates last year — helped to drive gross profits at group level 14.5% higher. And in its so-called high potential territories of the US, Germany, Latin America, Greater China and South East Asia, profits surged by a collective 25% year-on-year.

Clearly the jobs giant is on the up and up, and with it aiming to boost its global headcount to 10,000 from the all-time high of around 7,800 to capitalise on these fertile markets, there should be plenty more to come.

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Royston Wild has no position in any of the shares mentioned. 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.

Healthcare is one of the country’s fastest-growing industries as the domestic population booms, and in particular the number of elderly people who put particular strain on the health service. Indeed, the Office for National Statistics estimates that the UK population will top 70m by 2030 and hit 77m by the mid-point of the century.

Assura, in my opinion is a great way to play this theme, a firm which buys up, develops and manages doctors’ surgeries, primary care and community healthcare infrastructure. As I noted last time out, it’s committed to aggressive M&A to fully exploit this opportunity-rich marketplace and latest trading details underlined the wisdom of such a strategy.

5%+ yields

In interims released a month ago Assura advised that EPRA (or European Public Real Estate Association) earnings shot 36% higher in the six months to September, to £31.7m, while the rent roll rose 7% to £97m. What’s more, the value of its property portfolio rose 6% from a year earlier to £1.8bn.

And these solid results prompted the FTSE 250 firm to hike the interim dividend 9% year-on-year to 1.3p per share.

City brokers believe that Assura, supported by a 9% earnings rise in the full financial year, will lift the total dividend to 2.7p per share from 2.455p last year. In fiscal 2020 it’s expected to grow again to 2.8p, supported by a prediction of another 5% yearly profits improvement Such projections yield an inflation-smashing 5% and 5.2% respectively.

As Assura commented in that release, there is “significant underinvestment in the nation’s primary care premises [with] many GP premises not currently fit for purposes.” And with the government boosting investment in community care to take the strain off Britain’s jam-packed hospitals, Theresa May announcing a £3.5bn cash injection in this area by 2023/24 just last month, the profits picture over at the business looks extremely bright to me.

Bricks beauty

Marshalls (LSE: MSLH) is another great income share that should thrive in the decades ahead.

Profits generation at the paving block manufacturer has been most impressive, growing relentlessly and at double-digit percentages for more than half a decade now. And acquisition activity this month has boosted its appeal as a great growth stock for the coming years, Marshalls buying concrete brick manufacturer Edenhall for £17.2m in a move that increases its exposure to the robust housebuilding market.

In the immediate future, City analysts are forecasting another 16% earnings rise in 2018, this forecast supported by news this month that revenues boomed 14% during the first 11 months of the year to £465m. Another 8% rise is predicted for next year, although I can see this figure being upgraded as we move through 2019 following the aforementioned M&A action.

With sales and profits expected to keep ripping higher, the number crunchers are predicting even more special dividends and so total rewards of 14.5p and 14.6p per share are anticipated for 2018 and 2019 respectively. The yield consequently sits at a handsome 3.2% through to the close of next year, making Marshalls one of the hottest FTSE 250 shares to buy now and hold for many years into the future, I believe.

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Royston Wild has no position in any of the shares mentioned. 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.

Shares such as Glencore (LSE: GLEN) offer an even higher yield, with the mining stock forecast to have a dividend yield of 5.7% in the current year. Alongside another high-yielder which released an update on Thursday, it could be worth buying for the long term, in my opinion.

Improving prospects

The company in question is primary care property investor and developer Assura (LSE: AGR). Its interim results showed the continued growth of its portfolio, with a 6% increase in investment property to £1.8bn. It was able to add 39 properties to its portfolio during the period at a combined cost of £108m, with a further three properties added after the period end at a total cost of £50m.

The company’s current loan-to-value (LTV) of 30% suggests that it has headroom for further investment. Its pipeline remains strong, while the general consensus that primary care should play a larger role in health provision may mean that demand remains resilient over the medium term. And with the company increasing its rent roll by 7% to £97m during the first six months of the year, it seems to be performing well.

Since Assura has a dividend yield of 4.7%, it could offer impressive income returns in the long run. With a stable business model, and what appears to be a strong strategy, it could offer resilient dividend returns in the coming years.

Growth outlook

As mentioned, Glencore has a dividend yield which is significantly higher than the FTSE 100. The company appears to have a strong growth outlook, focusing on a range of commodities used in the manufacture of electric vehicles. This provides it with growth potential as electric vehicles are likely to experience rising demand among consumers.

Although resources shares are not especially popular at the present time due to fears surrounding the prospects for the world economy, Glencore’s diversity could help to protect it to some degree from challenges in specific areas. It may also be attractive to investors seeking to find investments which may not be impacted heavily by Brexit, since the prospects of a no-deal appear to still be relatively high.

With Glencore’s dividend in the current year expected to be covered 2.3 times by profit, it seems to have a significant amount of headroom when making payouts to shareholders. While its status as a commodity producer may mean that its shares are relatively volatile, from a long-term perspective it appears to have investment potential and could deliver impressive dividend growth, given favourable operating conditions.

The post Have £1,000 to invest? Glencore is a FTSE 100 dividend share I’d buy for the long term appeared first on The Motley Fool UK.

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Peter Stephens has no position in any of the shares mentioned. 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.

The scourge of inflation is back to plague savers and while it has fallen back recently — it dropped 30 basis points to 2.4% in September — it still soars above the best-yielding cash ISAs currently on the market. And it’s quite possible that inflation will rise again as Brexit-related fears keep the pound under pressure.

In good health

I believe that a much better way to protect your savings is by investing in dividend hero Assura (LSE: AGR).

The FTSE 250 business, which buys and develops primary healthcare properties in the UK, is required to distribute 90% of taxable profits to its shareholders in the form of dividends due to its classification as a real estate investment trust. And so investors have enjoyed bulky payout growth in recent times as the bottom line has swelled, Assura lifting the annual dividend more than 9% in the 12 months to March 2018 alone to 2.46p per share.

With brokers expecting a 10% earnings uplift in fiscal 2019, the dividend is predicted to rise to 2.6p too. Another 7% profits improvement next year leads to suggestions of a 2.8p reward as well. And as a consequence, yields for these years ring in at a stonking 4.6% and 5% respectively.

M&A mammoth

Of course, stashing your wealth in stocks and shares rather than a cash ISA carries a higher degree of investment risk. However, it could be argued that Assura’s healthcare-related operations make it a much stronger defensive pick than many other companies currently on the market.

And what’s more, the healthcare play continues to expand heavily to keep earnings on an upward tilt. Between April and September it forked out some £108m to snap up 39 medical centres and two developments, and as of the end of last month, it boasted a total annualised rent roll of £96.9m versus £91m as of March 2018, it announced at the start of October.

Back then, chief executive Jonathan Murphy commented that “we have good momentum in the business, with a strong pipeline of opportunities” and he wasn’t exaggerating. Just a few days after October’s release, Assura said that it had forked out another £50m on another three health centres, including £30m on the Stratford Healthcare Centre in Stratford-upon-Avon. Its broad range of facilities — which includes “a GP surgery, renal unit, pharmacy, dentist, physiotherapy centre, rehabilitation centre, mental and sexual health services” — makes it one of the biggest primary healthcare centres in the country.

As of today, Assura has 559 surgeries and similar facilities on its books, and it has the financial firepower to keep boosting the rent roll with additional acquisitions. Right now it’s a great pick for both growth and income investors, in my opinion, and more than worthy of its slightly-toppy forward P/E multiple of 20.7 times.

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Royston Wild has no position in any of the shares mentioned. 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.

Of course, BT is not the only stock which has a high yield. Reporting on Friday was a FTSE 250 share that could deliver an impressive income return in the long run. As such, it could also be a better investment than a buy-to-let property.

Acquisition prospects

The company in question is real estate investment trust (REIT) Assura (LSE: AGR). The investor in primary care properties announced details of three further acquisitions that have been made for a combined consideration of £50m. This takes the company’s year-to-date spending on acquisitions to £158m, comprising 42 medical centres. They have a passing rent roll of £7.7m and a weighted unexpired lease term of 14.2 years.

The acquisitions include one of the largest primary healthcare facilities in the UK, Stratford Healthcare Centre in Stratford-Upon-Avon. It is a central hub for the provision of local healthcare services, and includes a variety of healthcare-related services.

With Assura having a dividend yield of 4.6%, it appears to offer strong income prospects. Given the nature of its business, it could also provide relatively stable returns over a long period. With the reliability of a dividend being of high importance to many income investors, it could therefore be a relatively appealing dividend share for the long term.

Undervalued share

As mentioned, BT has a dividend yield of around 6.9% at the present time. Since it is covered 1.6 times by profit, it appears to be affordable. Certainly, the financial performance of the business has continued to disappoint. The company does not yet appear to have found its feet in what is an increasingly competitive quad-play industry. A number of rivals are expanding their services, and with the company having recently refreshed its strategy, it still seems to be working out how to make its enlarged business more profitable following the purchase of EE and the investment in pay-TV.

Of course, the job of generating improving financial performance is set to be tasked to a new CEO. This could act as a catalyst on the company’s operational and financial performance. Given its strong position in a variety of markets, though, it seems likely that the right growth plan will be found. And, with BT shares having a price-to-earnings (P/E) ratio of 9.5, they could offer high returns in the long run.

As such, and while still relatively risky, the stock could be a stronger income investment opportunity than a buy-to-let property. It appears to have sound recovery potential, as well as a high dividend yield.

The post Thinking of investing in buy-to-let? Buying FTSE 100 dividend share BT may be a better idea appeared first on The Motley Fool UK.

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Peter Stephens has no position in any of the shares mentioned. 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.

According to the Investment Property Databank (IPD) Healthcare Index, primary healthcare properties — such as GP surgeries — have delivered a total return of more than 7% per year since 2007, with less risk than any other class of property.

The first stock I want to look at today is healthcare property REIT Assura (LSE: AGR), which develops and invests in GP surgeries. Assura earns 84% of its rent roll from the NHS.

Assura now owns 556 properties, out of a total UK market of around 9,000 GP surgeries and medical centres. The company says that this makes it the sector leader “in a highly fragmented market”.

One attraction of this business is that rent payments are likely to be supremely reliable. This compares favourably to retail property, for example, where many tenants are suffering financial problems.

What could go wrong?

One possible downside is that high demand for secure income means that healthcare rental yields are quite low.

In a trading statement issued today, the company said it had paid £108.2m for 39 medical centres and two developments during the first quarter. Collectively, these properties generate £5.5m of rent each year and have a weighted average lease term remaining of 13.3 years.

This suggests a gross rental yield of 5.1%, which seems fairly low to me, given that the group’s debt carries an average cost of 3.3%.

As a contrast, my second stock today has similar levels of gearing and an average debt cost of 2.9%. But it recently announced a £57m property acquisition with a net initial yield of 9.15%.

To sum up, my view on Assura is that investors are paying a high price for a secure income. Given that interest rates seem likely to rise, I think these shares are already fully priced.

One property stock I’d buy

The other company I mentioned above is FTSE 250 property firm Hansteen Holdings (LSE:HSTN). This group owns offices and industrial property, such as warehouses and distribution centres.

Demand for logistics properties is pretty high at the moment, due to the growth of internet shopping. Hansteen took advantage of this strength to sell its Dutch and German portfolios for €1.3bn in 2017. Earlier this year the firm continued to lock in gains on its portfolio, selling £116m of UK property.

Adding value

The proceeds from these sales have been used to fund significant returns to shareholders. Management said it has opted to return capital rather than buy new assets because high prices mean that opportunities for new investments are “limited”.

I like this conservative approach from management. I also like the company’s ability to buy properties and improve them by increasing occupancy and rental levels. This allows Hansteen to create value for shareholders in a way that I suspect may be harder for Assura.

Higher returns

Here’s another way of comparing the two companies. Hansteen generated a return on capital employed of 10.4% last year. Assura generated ROCE of just 4.1%.

Hansteen shares currently trade in line with their book value and offer a forward yield of 5.2%. I’d be happy to buy this stock today, despite the group’s exposure to the UK economy.

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Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Hansteen Holdings. 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.

Indeed, such is the size of dividend yields over at one of these shares, Persimmon, that I reckon investors could use the housebuilder to help them to pack in the day job.

My quest for other potentially game-changing income shares has uncovered Assura (LSE: AGR), a FTSE 250 share that has lifted dividends by more than 80% during the past five years, and whose forward yields smash the main market average of 3.9% by some distance.

City analysts expect the total dividend to move to 2.6p per share in the year to March 2019 from 2.455p a year earlier, a prediction that creates a juicy 4.8% yield. The dial edges to 5.2% for fiscal 2020 thanks to predictions of a 2.8p payout too.

In great health

The number crunchers are really quite bullish over Assura’s profits picture — rises of 10% and 7% are predicted for this year and next alone — and it’s not surprising as Britain’s ageing population requires the NHS to keep investing heavily in its facilities.

The company, which invests and develops primary care properties in the UK such as GP practices, also remains busy on the M&A trail to drive business. It had 525 medical centres on its books with a total annualised rent roll of £92.3m as of the close of the second fiscal quarter, and the launch of a £300m bond in July gives it further firepower to execute its growth strategy (its pipeline already stood at a chunky £225m as of June).

Plastic fantastic

Now Assura doesn’t come cheap, the firm sporting a forward P/E ratio of 19.7 times, which sits outside the widely-regarded value territory of 15 times and below. Whilst I reckon its leading position in this particular defensive medical market warrants a ‘lively’ premium, investors on the hunt for classic value may be more interested by RPC Group (LSE: RPC) which carries a prospective earnings multiple of 9.2 times.

Although concerns over the way the company funds acquisitions has weighed on its share price more recently, I believe that these fears are now baked into the plastics packager’s rock bottom valuation. The FTSE 250 play has pruned its operations and divested non-essential divisions to boost its balance sheet to help it continue on its M&A-led growth path in recent times too.

Moreover, whilst fears over plastics regulations from the EU have also put a dampener on investor appetite in 2018, RPC’s drive to develop its products with customers in line with modern environmental concerns should still provide the scope for it to keep winning plenty of business.

Dividends have risen for 25 consecutive years over at RPC, culminating in a reward of 28p per share for the year ended March 2018. It’s no surprise that expectations of further profit growth (of 5% this year and 7% next year) lead the City to anticipate extra significant payout growth as well.

A 30.2p reward is anticipated for the current fiscal year, meaning a chunky yield of 4.3%. And in fiscal 2020 the dial moves to 4.7% thanks to the predicted 32.5p dividend. RPC remains a stock to buy today and hold for years, in my opinion.

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

As such, companies that are able to offer relatively robust dividend outlooks could become more popular. They may provide investors with a degree of certainty, which is what makes these two stocks worth a closer look right now.

Improving performance

Reporting on Wednesday was RDI (LSE: RDI), a real estate investment trust (REIT). The company’s performance in the first half of its financial year was positive, with its underlying earnings per share rising by 8.2%. This is ahead of its medium term growth target and was boosted by an increase in gross rental income of 2.1% on a like-for-like (LFL) basis.

The company has been able to improve the income-producing capabilities of its portfolio through the recycling of capital out of low-growth assets and into assets which offer stronger long-term potential. With an occupancy level of 97.3%, the company appears to have a solid outlook, which could help to boost dividend payments in future years.

In fact, RDI currently has a rather enticing income outlook. It has a dividend yield of 7.7%, which makes it one of the highest-yielding shares in the FTSE 250. With the stock trading on a price-to-earnings (P/E) ratio of 14 and offering a relatively robust growth outlook, it could become increasingly popular if stock market volatility remains high.

Dividend growth

Also offering strong income return potential within the REIT sector is Assura (LSE: AGR). The manager and developer of surgery buildings and healthcare centres has experienced a positive period in recent years when it comes to dividend growth. Shareholder payouts have doubled in the last four years, and this puts it on a dividend yield of 4.6% at the present time.

With further dividend growth of 10% per annum forecast over the next two financial years, the stock could provide its investors with a rising real-terms yield even if inflation returns to a higher level as Brexit talks progress.

Certainly, there are companies which offer stronger earnings growth and a lower valuation than Assura. Its P/E ratio of 23 may seem rather high, but due to its relatively low level of risk and its long-term growth potential it could be worthy of a premium valuation.

Therefore, from an income investing perspective it may become increasingly popular as investors continue to seek income-producing assets which offer a robust outlook in a volatile set of market conditions. And since interest rate rises could be slow and steady, its dividend potential may be worth paying for.

The post 2 FTSE 250 dividend stocks yielding 4%+ that I’d buy today appeared first on The Motley Fool UK.

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Peter Stephens has no position in any of the shares mentioned. 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.

There is no shortage of great dividend stocks across the FTSE 250 index, but there are two in particular I would like to draw your attention to today: Assura (LSE: AGR) and Big Yellow Group (LSE: BYG).

Assura, a real estate investment trust that specialises in the healthcare sector, has proved rich pickings for income chasers in recent times as it has almost doubled dividends over the past five years. And City analysts believe its progressive payout scheme has much more in the tank.

Supported by an estimated 10% earnings improvement in the year to March 2018, the company is expected to raise the dividend to 2.5p per share from 2.25p last year. And this results in a giant 4.2% yield.

And in the upcoming year a 2.7p dividend is being forecast, helped by a predicted 6% profits advance and a figure that yields a brilliant 4.5%.

In rude health

It isn’t difficult to see earnings and thus payouts continue streaming higher at Assura for a long time to come either.

Suffice to say the business of healthcare is one of the ultimate defensive investment segments, providing the sort of earnings visibility that is critical for strong and sustained dividend expansion.

But Assura isn’t prepared to rest on its laurels and is expanding at a furious rate to light a fire under shareholder returns. Indeed, it acquired 22 medical centres and one development during the October-December quarter alone, taking the number of medical sites on its portfolio to a shade under 500.

Assura may be expensive, the firm carrying a P/E ratio of 21.3 times for the year starting April 2019. But I believe the firm’s exceptional defensive characteristics merit such a weighty premium.

Space star

Big Yellow is another great pick for dividend investors in spite of an also-elevated valuation (it currently deals on a forward P/E rating of 22.1 times for the fiscal year beginning April 2018).

Investec brokers are expecting the self-storage experts to report a 10% earnings rise in the 12-month period closing in a couple of weeks. And this is expected to keep dividends chugging northwards, with last year’s 27.6p per share reward predicted to rise to 30.6p, resulting in a 3.5% yield.

And next year, the payout is expected to move to 31.6p, helped by an anticipated 3% profits improvement and nudging the yield to a delicious 3.6%.

As my Foolish colleague Peter Stephens recently commented, some have questioned Big Yellow’s near-term profits outlook as the UK economy slows. But I for one remain convinced by the company’s growth prospects — we are a country of hoarders and space is at a premium in this land, after all. The business is well placed to capitalise on this trend, particularly as it expands its store network in urban spaces the length and breadth of the country.

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Royston Wild has no position in any of the shares mentioned. 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.

However, as is the case in any market conditions, there are still some stocks that could offer wide margins of safety. Here are two companies which could be worth buying today for the long term.

Solid performance

Reporting on Thursday was primary care property investor and developer Assura (LSE: AGR). The company reported a solid third-quarter performance, with it completing the acquisition of 22 medical centres and one development under a forward funding agreement at a combined cost of £84m. This has helped to drive the company’s rent roll to £87.4m on an annualised basis. And with £310m in capital raised in December, the company’s financial position appears to be improving.

Looking ahead, the company continues to see a positive market outlook. Demand for modern buildings is set to remain robust in future years, with the autumn budget recently setting out £10bn to invest in making NHS buildings fit for the future.

With a dividend yield of 4.1%, Assura appears to have a solid income outlook. Its bottom line is due to rise by 6% this year and 8% next year, which suggests that it could deliver further improvements to dividend payments. As such, now could be the perfect time to buy it for the long term, with a resilient and stable business model potentially providing diversification during the current bull market.

Uncertain future

Also offering the potential for impressive income returns is utility company SSE (LSE: SSE). The company reported this week that it continues to offer dividend growth which will match RPI inflation in both the current financial year and next year. This means that its 7.3% dividend yield could become even more enticing over the medium term. With inflation currently less than half that level, the company’s income prospects remain exceptionally attractive.

Of course, SSE faces an uncertain future. It is currently in the process of spinning-off its domestic energy supply business in a combination with Npower. This is expected to complete in the next year and it could create a stronger entity with greater resources. It may also allow SSE to become a more focused and innovative business which is better able to deliver rising dividends in future.

Clearly, the utility sector is highly unpopular among investors at the moment. Political risk remains at possibly its highest level in over a decade, and this could mean regulatory changes are ahead in the coming years. But with such a high dividend yield, the potential for inflation-matching dividend growth and an evolving business model, SSE may offer high total return potential for the long run. As such, it could be worth buying today.

The post 2 stocks I’d invest £1,000 in today appeared first on The Motley Fool UK.

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Peter Stephens owns shares in SSE. 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.