I reckon, though, that the business is an undervalued gem. Carrying a forward P/E ratio inside the bargain bin basement of 10 times or below (at 7.5 times), and boasting a brilliant corresponding dividend yield of 5%, on paper it certainly provides plenty of bang for your buck.

And I reckon this low, low rating could prompt a flurry of buying in the weeks ahead. Indeed, there are many robust trading statements that I’m expecting from Britain’s homebuilders in August alone — Taylor Wimpey, Persimmon and Bellway are a few slated to update the market — and I believe this could cause a slew of positive energy to flow across the entire sector.

Escape to the country

Countryside has itself put in a rosy update of its own in recent days, one which has helped its share price climb off those aforementioned troughs. In it, the Essex business celebrated the “strong customer demand” which it keeps witnessing across all of its categories of homes and in spite of the prolonged uncertainty being brought about by Brexit.

So while completion numbers and average selling prices were broadly stable year-on-year in the three months to June, Countryside saw the net reservation rate rise 12% to 1 and its total order book swell 17% to £1.14bn. It’s no wonder that the business plans to turbocharge build rates from the current quarter.

What’s particularly rare about this housebuilder is the fact that, unlike most of its competitors, City analysts for the most part expect annual earnings to keep soaring in spite of the slowdown in the broader housing market.

Bottom-line rises of 10% and 11% are estimated for the years to September 2019 and 2020 respectively, figures which make Countryside’s dirt-cheap valuations all the more bewildering in my opinion. If you’re looking for a terrific dip buy paying big dividends, I reckon this is a stock worth a place in your portfolio.

Set to soar?

I would extend my bullishness to Meggitt (LSE: MGGT), not that this FTSE 250 share has experienced any share price woe of late. In fact, a recent spurt has taken it to record peaks just shy of 600p.

It’s worth considering the possibility of additional gains once the aerospace giant unveils interim results on August 6. Meggitt certainly impressed last time out in late April when it cheered “strong” trading in the first quarter. That was thanks to robust end markets and its programme of increasing content on new aircraft classes, with revenues rising across both defence and civil aviation segments.

Unsurprisingly, City analysts expect earnings growth to accelerate over the medium term, an anticipated 5% rise for 2019 giving way to a predicted 10% increase next year. And combined with its exceptional cash flows, Meggitt’s expected to keep its progressive dividend policy in tow, resulting in an inflation-mashing forward yield of 3%. I reckon this is another top FTSE 250 buy for next month.

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Royston Wild owns shares of Taylor Wimpey. The Motley Fool UK has recommended Meggitt. 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.

An 10% share price decline in the past month now leaves the homebuilder dealing on a forward P/E ratio of 7.5 times. This makes it too cheap to pass up in my opinion. In the infamous words of Theresa May: “Nothing has changed,” a statement that can be easily extended to Countryside and its peers.

Home price growth remains subdued, of course, reflecting the slowdown in the broader housing market. This means that the ripping earnings expansion seen in recent years at the homes creators is well and truly over.

That said, the capacity for the builders to keep generating chunky profits growth remains strong because of the mortgage rate wars underpinning buyer demand, and the shortage of available properties for them to snap up which is driving newbuild sales.

It keeps on trucking

The more favourable market conditions were underlined by Countryside last week during bubbly half-year results. The FTSE 250 firm said adjusted revenues rose 20% in the six months to March, a performance which helped adjusted operating profits boom 11% to £89.4m.

The construction colossus in particular paid tribute to “a strong second quarter with a net private reservation rate at the top of our target range,” a performance which helped the net reservation rate remain stable from the same period last year at 0.86.

It’s no wonder then that Countryside took the decision to boost build rates and to acquire Westleigh Homes to capitalise on the fertile trading environment — its forward order book stood 49% higher from March 2018, at £1.04bn.

Now Countryside isn’t having it all its own way and, reflecting the broader pressure on property prices in some parts of the UK, the average selling price of its homes fell £25,000 to £377,000 on the first half. 

However, City brokers don’t reckon this will preclude the business from recording some substantial profits increases in the medium term at least, with current consensus forecasts suggestive of 12% earnings rises in both this year and next.

Surging dividend yields

Countryside isn’t a share that’s all about growth, either. As I’ve said, this particular company is a great buy for income chasers as well because of the rate at which it’s hiked dividends over the past few years. And it’s still at it, the interim dividend surging more than 40% year-on-year to 6p per share.

For the full year to September 2019, City analysts are predicting a dividend of 12.7p per share, up from 10.8p last year and yielding a fatty 4%. Things get even better for fiscal 2020 too, as the anticipated 13.8p payment yields 4.5%.

If you’re looking for the magical blend of growth and income, I reckon Countryside is hard to fault. And what’s more, it’s low, low valuation seals its position as a white hot buy, certainly in my opinion.

The post This FTSE 250 growth AND dividend stock’s on sale. This is why I would buy it! appeared first on The Motley Fool UK.

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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.

Construction time

The FTSE 250 home builder and urban regeneration partner’s update for the six months to 31 March shows it remains on track to meet full-year expectations. Completions should total 2,362 homes, a strong figure even though the average selling price dropped 4% to £377,000. This was largely due to an increased contribution from its regional businesses, where prices are lower than in London and the South East.

Countryside also boasts a strong total forward order book, up a whacking 49% to £1.037bn. The net reservation rate is at the top end of its target range at 0.86, down only slightly from 0.87 last year. Net debt has risen to £42.1m, against net cash of £13.7m last year, but that was better than expectations and doesn’t appear to bother investors.

Spring time

Countryside has been successful in winning new business and after a slower start to the year, Q2 customer demand has held up well. Group CEO Ian Sutcliffe says that despite the wider political and macroeconomic uncertainty, demand for mixed-tenure homes remains strong and the group has enjoyed “a robust spring selling season” and enjoys “excellent visibility of future work”. It remains confident of delivering its medium-term growth plans.

The £1.52bn company trades around 12% lower than a year ago, as wider uncertainties hit housebuilding stocks generally, and is now at a tempting valuation of just 8.1 times forecast earnings, with a PEG of just 0.6.

Decision time

The forecast dividend yield is 3.8%, with very healthy cover of 3.3%. Recent years’ earnings per share (EPS) growth has been pretty astounding, at 196%, 70% and 30%, although the next couple of years look steadier at 12% each. Rupert Hargreaves presciently picked it out as one of his three top growth stocks for April.

My question is whether you could do better with a sector peer. You can certainly get higher income elsewhere. For example, Persimmon (LSE: PSN) currently has a forecast yield of 10%. However, as fellow Fool Kevin Godbold points out, the company’s yield is a special case, and may be more susceptible to future profit swings than other company payouts.

Capital move

Persimmon has relatively little London exposure, which is working out well as the capital’s market slows. This FTSE 100 stock is a bigger beast than Countryside with a market cap of £7.5bn but is also available at a bargain valuation, in this case just 7.6 times earnings.

However, its growth trajectory appears to be slowing. After five years of healthy double-digit EPS increases, the company’s earnings are expected to be flat in 2019, and rise just 1% the year after. Also, it still hasn’t shaken off the controversy over former chief executive Jeff Fairburn’s mind-boggling bonus payments.

Interestingly, broker Jefferies recently examined the housebuilding sector and named Countryside its number one buy, while labelling Persimmon a hold. The property market is slipping but demand remains steady given support from Help to Buy and the average residential mortgage rate being a record low 2.6%, according to Ludlow Thompson.

Today’s high yields and low valuations make the sector hard to resist, for those who accept the risks.

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Harvey Jones 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.

Turnaround complete 

Five years ago, Countryside was loss-making and heavily indebted. However, a jump in sales in recent years have helped the company move from a loss of £12m of 2014 to a profit of £148m for 2018.

And analysts are expecting further growth in 2019 and 2020. The City has pencilled in earnings per share (EPS) growth of 15% for this year, which, if achieved, will take EPS up to 40.6p from last year’s 35.4.

Further growth is expected in 2020 where analysts have pencilled in an increase of 12% to 45.3p. Based on these estimates, shares in Countryside are currently dealing at a forward P/E of 8.1 falling to 7.2 for 2020. A PEG ratio of 0.7 tells me the stock offers growth at a reasonable price at this level.

On top of the company’s attractive valuation, the shares also support a dividend yield of 3.8% and the payout is covered more than three times by EPS, as well as being supported by the firm’s net cash balance of £45m.

Explosive growth 

As well as Countryside, I’m also excited about the prospects for JD Sports Fashion (LSE: JD).

Shares in JD don’t look particularly cheap at first glance, but considering the company’s growth over the past 10 years, I believe it is worth paying a premium to invest in this business. 

Indeed, over the past five years, the group’s earnings per share have expanded at a compound annual rate of 43%. I think it is unrealistic to expect this rate of growth to continue, but even if growth slows to 10% per annum (City analysts are predicting EPS growth of 11% this year and 13% for 2020), I believe investors buying today will be well rewarded over the medium term. 

For example, according to my calculations, based on analysts’ EPS target of 27.7p for 2019, five years of growth at 10% will leave the firm earning 44.6p per share by 2025. As shares in the company have historically commanded a P/E of around 18, EPS of 44.6p implies the shares could be worth as much as 803p, a gain of 61% from current levels, excluding dividends.

Vast profits 

The final growth share I would buy in April is 4imprint (LSE: FOUR). You might not think that supplying so-called direct marketing materials such as branded pens and notebooks is a particularly lucrative business, but it is for 4imprint. 

Over the past five years, the company’s net profit has jumped 500%, and City analysts don’t expect this trend to come to an end any time soon. They’ve pencilled in EPS growth of 15% for 2019 and 12.2% for 2020.

Based on these projections, shares in the company are currently dealing at a forward P/E of 21.6, which might look rather expensive at first glance, but historically shares in 4imprint have traded in the 20 to 34 range. This is justifiable in my opinion because 4imprint is an exceptionally profitable business. Last year it earned a return on capital employed — a measure of profitability for every £1 invested in the business — of 75%, putting it in the top 1% of the most profitable companies trading in London as measured by return on capital.

The post 3 top growth stocks I’d buy in April appeared first on The Motley Fool UK.

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Rupert Hargreaves owns no share 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 financial services star offers the perfect blend of growth and income, not just now but in the years ahead. This great combination makes Countryside Properties (LSE: CSP) from the FTSE 250 a great stock to buy today too. And thanks to the scale of the UK’s housing shortage, an ultra-safe place to stash your hard-earned cash.

The housebuilding colossus certainly impressed last time it unveiled trading numbers in January, and a string of market updates from its peers since then has underlined just how robust conditions remain for these construction stocks.

Just this week, Persimmon celebrated a 13% pre-tax profit jump in 2018, to £1.1bn, and lauded government policy that is “very supportive of the housebuilding industry.” Government policy needs to remain so in order to solve the country’s yawning supply/demand imbalance too, a point underlined by the Conservative’s vow to keep its Help To Buy support scheme for first-time buyers running until 2023 at least.

Dividends boom

This provides investors in the likes of Countryside with some peace of mind for the coming years. Questions remain over the impact that Brexit will have on the broader housing sector, but I would argue that these concerns are more than reflected by this firm’s low, low forward P/E ratio of 7.7 times. Besides, I’m not expecting profits to tank for the newbuild specialists, given that the government still hasn’t delivered a robust plan to supercharge build rates to meet soaring demand in the coming  years.

Reflecting this bright outlook, City brokers expect Countryside Properties to deliver earnings growth of 13% and 12% in the years to September 2019 and 2020, respectively. Given that the homes market is currently at its weakest for decades, this is a pretty encouraging endorsement, right?

And the good news continues with predictions of more tasty dividend growth, last year’s 10.8p per share reward anticipated to rise to 12.3p this year and again to 13.8p for fiscal 2020. Such projections yield a massive 3.9% and 4.4% and cement my opinion that Countryside is a great income share to snap up today.

Social climber

Civitas Social Housing (LSE: CSH) is another big-yielder that I’d snap up today on the back of Britain’s housing crunch.

Indeed, a lack of adequate supply in the affordable homes space in particular, an area in which this FTSE 250 firm specialises, has become a particularly hot political potato in recent years, and huge government investment here gives Civitas’ profits prospects a huge shot in the arm.

City analysts expect the real estate investment trust to keep swelling over the next few years at least, helped by the company’s thirst for acquisitions (Civitas acquired another 36 properties during the three months to December alone). And this supports predictions of further dividend growth too, the 3p per share payout of the year to March 2018 expected to rise to 5p and 5.2p in fiscal 2019 and 2020, respectively.

Its bright long-term outlook means that I don’t care about a slightly toppy forward P/E ratio of 19.6 times. I’d happily buy it and cling close for many years to come. Besides, jumbo dividend yields of 5.1% and 5.3% for this year and next, respectively, help to take the sting out of its expensive rating.

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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.

Before I do, though, I’d like to draw your attention to Countryside Properties (LSE: CSP). It’s another dirt-cheap, big dividend payer that I’d be happy to buy and hang onto for the next 10 years at least, and fresh trading results last week again showed why.

The FTSE 250 firm declared on Thursday that total completions galloped 28% higher in 2018 to 1,094 properties, helped in part by the acquisition of affordable homes specialist Westleigh Homes last year.

Demand for affordable homes is heading through the roof at the moment and is likely to continue doing so, supported by low mortgage rates and the government’s Help To Buy scheme. In total some 413 of these properties completed at Countryside between October and December, up 52% year-on-year.

A great dividend grower

And the Essex business is capitalising on this fertile trading environment by raising its construction rates, a strategy that has helped its total forward order book leap 78% to a record £946m as of December.

Things are looking good, then, for the housebuilder to keep earnings rising at quite a pace, a view shared by City analysts who predict further double-digit-percentage profit rises for the fiscal years to September 2019 and 2020. Consequently Countryside also looks in great shape to keep growing dividends at a stunning pace (it raised the full-year dividend 29% last time out to 10.8p per share, for example).

The number crunchers estimate a 12.3p reward for this year and 13.8p for next year, figures that yield a fat 3.8% and 4.3%.

An easy choice

I believe there is a huge disparity between the builder and its share price right now in light of its brilliant profits picture, Countryside currently trading on a forward P/E ratio of just 7.9 times. And the same can be said for easyJet, the budget airline also dealing on a bargain-basement earnings multiple of 10.7 times for the current year.

I like the FTSE 100 flyer a lot and its first-quarter trading update also unveiled last week showed why. Total revenues in the three months to December surged 13.7% to £1.3bn, driven by a 15.1% improvement in passenger numbers which moved to 21.6m.

The steps easyJet is taking to bolster its fleet and the number of routes it operates have clearly paid off handsomely and look set to continue to do so. It has largely shrugged off the negative impact of Brexit and commented that booking levels for the first fiscal half “remain encouraging.” It added that second half bookings “continue to be ahead of last year.”

Budget travel is big business and this is why I’m confident that easyJet will continue to thrive. And so is the City, with brokers predicting that the airline will be encouraged to lift the dividend from 58.6p per share in fiscal 2018 to 59.9p this year and 64.3p next year. Yields therefore sit at an inflation-busting 4.7% and 5.1% for these respective years, figures which make the business a brilliant Footsie income share to load up on today.

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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, it’s not the only stock which could generate impressive returns in the long run. Reporting on Thursday was a cheap FTSE 250 company that may be able to post high profit growth and improving investment returns.

Improving prospects

The company in question is urban regeneration specialist and house-builder Countryside Properties (LSE: CSP). Its performance in the fiscal first quarter has been in line with expectations. It’s recorded a rise in total completions of 28%, increasing to 1,094 homes. Total forward order book increased by 78% to £946m, while its adjusted operating margin was in line with expectations.

Encouragingly, the company’s net debt of £12m is better than expected. It believes its mixed tenure delivery model could help it to meet the demand for homes across all bases and is on track to meet its medium-term guidance.

In the current year, Countryside Properties is expected to post a rise in earnings of 20%. This puts it on a price-to-earnings growth (PEG) ratio of around 0.5, which suggests it offers good value for money. With a dividend yield of 4% that’s covered 3.3 times by profit, it may also offer income investing potential. While its operating outlook may be uncertain, the stock could perform well as a result of its low valuation and growth potential.

Long-term opportunity

Diageo’s share price may also have a bright future. The company is adapting its strategy to keep pace with changing consumer tastes. The introduction of products with more natural ingredients has proved popular, and  product innovation may be able to boost its financial prospects yet further. Alongside this, rising wages in its key markets may mean that the popularity of premium drinks increases. This may provide scope for higher prices and growing margins over the long run.

Diageo’s business model has proven to be relatively robust and resilient in previous years. It has a strong track record of delivering growth during uncertain periods for the world economy. Since various risks may currently be facing the FTSE 100, it may therefore be able to offer lower correlation to the macroeconomic outlook than is the case for many of its index peers.

Of course, there are cheaper shares available – especially following the index’s fall in recent months. A price-to-earnings (P/E) ratio of around 21 suggests that there’s little, if any, margin of safety on offer. But with ambitious growth plans, a wide range of premium beverages, and a track record of resilient performance, it could prove to be a popular stock among investors.

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Peter Stephens owns shares of Diageo. The Motley Fool UK has recommended Diageo. 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.

A sum of £8,546.20 per year (that is, if you even qualify for the full amount) is all that the new pension scheme currently givesyou. And as the financial strains of a rapidly-ageing population worsen, the government’s ability to raise pensioner payouts in line with inflation will inevitably diminish, while the age at which Britons will be eligible to receive any payments is likely to head north of 70 within the next few decades.

As I said in a recent article, investing in stocks is absolutely critical to protect yourselves from a future living in poverty. It may sound dramatic, but given the pathetic size of the State Pension and the frankly-laughable yields on offer from cash accounts, this is very much the reality for millions of Britons.

Jobs giant

One way to make it more likely that you can generate handsome investment returns in the years ahead is by investing in PageGroup (LSE: PAGE).

I’ve tipped the recruitment giant time and time again on the back of its sterling progress around the globe, its robust position in emerging markets in particular making me optimistic over its long-term profits outlook.

My confidence in PageGroup was certainly reinforced following the release of recent interim financials. The FTSE 250 firm saw pre-tax profit boom 18.1% between January and June to £67.2m, with strength in its overseas divisions offsetting the impact of current Brexit-related troubles in the UK.

The result encouraged it to pay another special dividend of 12.73p per share on top of the interim dividend of 4.1p per share (which was up 5% year-on-year). So it comes as no surprise that City analysts are forecasting a total dividend of 26.2p for 2018, up from 25.23p last year and a figure that yields a chunky 4.3%.

And it’s easy to see earnings — which are predicted to rise 17% this year — as well as dividends continuing to stream higher as PageGroup bulks up its global workforce.  A forward P/E ratio of 19.7 times is expensive on paper, but in reality is pretty undemanding given the likelihood of it delivering titanic returns right up to when you are ready to retire.

Another income star

Countryside Properties (LSE: CSP) is another great dividend share from the FTSE 250 to consider buying today.

Shareholder rewards have gone gangbusters in recent years, culminating in the 8.4p per share dividend for the year to September 2017. Another hefty rise to 10.9p is predicted for the current year, meaning that investors can latch on to a juicy 3.4% yield. And for the shortly-arriving fiscal period a 4.1% yield is offered thanks to an estimated 13.2p dividend.

These forecasts are supported by an anticipated 29% annual earnings improvement this year and 20% in fiscal 2020, readings that also create a forward P/E ratio of just 9.1 times, making it ideal for value seekers.

One thing is for sure: the UK’s homes shortage is likely to get a lot worse before it gets better. And this means that specialists in new-build homes like Countryside are in great shape to keep delivering outstanding profits, and thus dividend, expansion for many years to come.

The post Forget the State Pension: these cheap FTSE 250 dividend shares could fund your retirement appeared first on The Motley Fool UK.

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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.

Buying up the underlying commodity itself may seem an unappealing prospect for many however, as your gold bars (if that’s your tipple) won’t pay dividends and will just sit in a vault or your safe at home looking pretty.

Buying into one of London’s listed gold producers is a way to get around this and Polymetal International (LSE: POLY) is a solid bet for those looking to protect their portfolios should risk appetite across the investment community turn south.

Bright earnings and dividend outlooks

Last time I covered the FTSE 250 share I mentioned the output-boosting measures it is taking to keep earnings chugging higher. And its bright earnings outlook — profits rises of 5% and 31% are forecast for 2018 and 2019 respectively by City brokers — is reinforced by strong demand for gold at the moment.

Latest World Gold Council data showed global gold-backed exchange traded funds adding 15 tonnes of gold during May, taking the total to 2,484 tonnes. Perky buying in Europe and Asia drove inflows higher again and, given the broad range of political and economic considerations unnerving investors today (from the consequences of Brexit to fears about overheated stock markets), I see no reason for yellow metal demand to subside any time soon.

Unsurprisingly, the solid earnings picture over at Polymetal feeds through to expectations that dividends will keep growing at an impressive rate too. Last year’s reward of 44 US cents per share is anticipated to advance to 45 cents in the current period (or so say the number crunchers), before detonating to 60 cents next year.

As a consequence, yields at the gold digger stand at 5.1% and 6.8% for 2018 and 2019 respectively. When you throw a dirt-cheap forward P/E ratio of 9.5 times into the equation as well, I reckon Polymetal is a hard stock to overlook right now.

Build a fortune

Countryside Properties (LSE: CSP) is another FTSE 250 share which investors are not exactly banging the doors down to buy, but which is one that I’d happily buy and hang onto for many years to come.

I’m not for one second suggesting that the British housing market isn’t on the defensive right now. But, while the devilish growth in property prices seen over recent decades may have gone the way of the dodo, average home values certainly aren’t falling off a cliff as many had predicted in the event of our now-cooling domestic economy.

Indeed, latest Halifax data actually showed prices bouncing back into expansion in May with a 1.5% rise. While there may be some month-on-month bumpiness along the way, the chronic UK housing shortage created by a rising population and insufficient build rates should keep prices broadly on an upward slope.

Countryside itself commented in May that although its own average selling prices ducked to £392,000 during October-March from £441,000 a year earlier, a 15% rise in the number of completions, to 1,655 homes, helped keep the top line swelling during the period.

Adjusted revenue rose 7% in the half-year to £468m, and this drove adjusted operating profit 14% higher to £80.6m. The great news for income hunters was that the strong result prompted the firm to hike the interim dividend 24% to 4.2p per share.

A proven growth-dividend great

With the supply/demand shortage in the UK set to keep driving demand for Countryside’s increasing number of new-builds, it should come as little surprise that City brokers are predicting both profits and dividends to continue marching skywards too.

Helped by an anticipated 26% earnings improvement in the year to September 2018, Countryside is expected to lift the full-year dividend to 10.8p from 8.4p last year. The good news doesn’t end here either as, supported by forecasts of a 21% profits leap in fiscal 2019, the total reward is expected to jump to 13.2p.

Dividend yields of 2.9% and 3.6% may be decent rather than spectacular, but I believe Countryside’s bright earnings prospects and rapidly-improving balance sheet make it a great pick for those seeking strong and sustained dividend growth. What’s more, a prospective P/E ratio of 10.6 times seals the deal and underlines the builder as a brilliant bargain at today’s share price.

The post 2 overlooked FTSE 250 dividend shares I’d buy and hold forever appeared first on The Motley Fool UK.

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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.

With that in mind, here are two FTSE 250 income shares which could be worth buying today. They both seem to offer a mix of income, value and growth potential.

Improving outlook

Reporting on Wednesday was UK home builder and urban regeneration partner Countryside Properties (LSE: CSP). The company’s completions in the first half of its financial year increased by 15% to 1,655 units. This is in line with expectations, with current trading continuing to be robust. Underlying sales price growth has been 3%, with build cost inflation moderating somewhat to around 3% during the period.

The company appears to have a bright future. The acquisition of Westleigh, a partnerships home builder, for £135.4m could act as a catalyst on the company’s future performance. It is expected to be earnings accretive in the current year and is expected to help boost the company’s bottom line by around 23%. This is due to be followed with further growth of 17% next year, which suggests that the business is enjoying a purple patch.

With Countryside Properties forecast to yield 4% in the next financial year from a dividend which is due to be covered three times by profit, it appears to offer strong income potential. Since it trades on a price-to-earnings (P/E) ratio of 12, it seems to have a potent mix of income and value appeal which could send its share price significantly higher.

Solid growth

Also offering upbeat investment potential within the housebuilding sector is Redrow (LSE: RDW). The FTSE 250-listed company has enjoyed a stunning five-year growth rate, with its bottom line rising at a double-digit pace in each year. Further growth is expected in the next two financial years, with its earnings forecast to increase by 14% this year and by an additional 10% next year.

With a dividend yield of 4% and a payout that is covered 3.4 times by profit, the company’s income prospects appear to be sound. Although the UK economy has experienced a difficult period since the EU referendum, the prospects for the housing market have remained buoyant. This could mean that the company’s P/E ratio of 9 is simply too low given its prospects, with the potential for an upward re-rating being high.

Certainly, Redrow’s share price decline of 4% in the last six months has been a disappointment. But with a solid growth outlook and a sound income opportunity, it could offer a strong turnaround over the medium term.

The post 2 FTSE 250 dividend stocks yielding 4%+ that I’d buy with £1,000 today appeared first on The Motley Fool UK.

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• Decided not to bother with a Stocks and Shares ISA? You might be missing these 3 things!
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Peter Stephens owns shares of Redrow. The Motley Fool UK has recommended Redrow. 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.