Dividend income or growth? These FTSE 250 shares have both

first_imgDividend income or growth? These FTSE 250 shares have both Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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. In the FTSE 250 alone, 108 companies have cancelled, suspended or cut their dividends this year. According to AJ Bell, UK dividend payments have fallen by around £40bn in 2020.But I believe there are still some great investments out there offering dividend income. I’ve identified two property-related shares from the FTSE 250. I think both offer attractive dividends and share price growth.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…Box up this FTSE 250 gemOne of the top performers in my own portfolio is FTSE 250 Real Estate Investment Trust Tritax Big Box REIT (LSE: BBOX). The company does as its name suggests. It owns huge distribution warehouses in strategic locations near main transport hubs and large cities.The high-tech facilities are rented out by blue-chip retailers. As such, the company is not expecting many defaults on rent. It said it expected that 99% of Q3 rents should be collected by the end of the quarter. This type of consistency alongside long leases creates a very dependable revenue stream.The FTSE 250 firm has been profiting from the shift to online shopping. As a REIT, it is required to distribute at least 90% of its tax-exempt profits excluding capital gains back to shareholders.In a trading update earlier this month, Tritax confirmed it was cutting its H1 dividend by 9% to 3.1p per share. However, this still equates to around a 4.2% annual dividend yield. Given its REIT status, this provides some limited security to the dividend income.The REIT is also growing, with operating profit in H1 increasing by a quarter to £70.6m. Revenue has increased from £44m in 2015 to £144m at the end of 2019. I think Tritax offers the rare combination of a safe looking dividend and growth in the share price.Another dividend income championFellow REIT and FTSE 250 member Big Yellow Group (LSE: BYG) focuses on self-storage. You may have seen its distinctive giant yellow metal boxes.Britain is a nation of hoarders, and Londoners in particular, living in cramped, overpriced housing are in dire need of storage. Therefore, it seems a sensible business model, in my opinion, to be a self-storage company focusing on London and its commuter towns.The company has been growing through acquisitions, developments and rising occupancy and rent rates for some time. It has 13 sites in development and recently acquired a site in Wapping for £18.6m.Revenues and dividends per share have been edging up since 2015. A Q2 trading update confirmed that revenues advanced 2.3% to £31.8m. This was despite a significant reduction in demand from March.As you might expect, domestic and student move-ins saw annual drops. But this was partially offset by a 28% increase in business move-ins.The total dividend was actually lifted by 1.8% to 33.8p per share. This equates to a dividend income of around 3.2%.With both FTSE 250 firms operating on a price-to-earnings ratio in the mid-20s, I don’t think either are bargains. But REITs offer diversity to a portfolio and the combination of progressive dividend income streams and share price growth makes both companies great buy-and-hold candidates in my opinion. 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. David Barnes | Wednesday, 26th August, 2020 | More on: BBOX David Barnes owns shares in Tritax Big Box REIT and Big Yellow Group. The Motley Fool UK has recommended Tritax Big Box REIT. 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. 5 Stocks For Trying To Build Wealth After 50center_img Image source: Getty Images See all posts by David Barnes Click here to claim your free copy of this special investing report now! Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this.last_img read more