10 FTSE 250 Shares with Dividend Yield of over 6 per cent

Summary

• The dividend yield is an important barometer for judging investment income outcome.
• Vectura Group, Diversified Energy Company, Hammerson, Plus500 are among the top FTSE-250 dividend yield shares.

The dividend-paying stocks are popular with investors for the steady flow of income that they give. Usually, companies that generate big cash flows and do not reinvest their money pay dividends to shareholders.

Hence, the dividend yield is an important barometer for judging investment outcomes. It is a ratio representing the current dividend of a company to its present share price. If the dividend payment remains the same when the price of a stock falls, the dividend yield would increase and vice-versa.

Here are 10 FTSE 250 stocks with over 6 per cent of dividend yield.

 

1. Vectura Group Plc (LON: VEC)

The shares of the British pharmaceuticals company have a one-year return of 27.50 per cent and a dividend yield of 12.31 per cent. The shares have a price-to-earnings (PE) ratio of 7.59x and a market capitalisation of £925.61 million.

The company’s revenue grew 6.9 per cent to £190.6 million from £178.3 million a year ago. Gross profit increased 6.4 per cent to £101.4 million from £95.3 million. It made an operating profit of £132.8 million from a loss of £27 million.

The shares of the company were up 0.27 per cent and were trading at GBX 151.40 on 26 July at 12:21 GMT+1.

 

2. Diversified Energy Company Plc (LON: DEC)

The oil and gas production company’s shares have a dividend yield of 11.35 per cent and a market capitalisation of £856.38 million.

For the year ended 31 December 2020, hedged adjusted EBITDA stood at $301 million, a 10 per cent increase from $273 million a year ago. It reported a net loss of $23 million compared to an income of $99 million a year ago. The company’s adjusted net income increased 83 per cent to $175 million from $96 million a year ago.

The shares of the company were up 2.80 per cent, trading at GBX 102.80 on 26 July at 12:21 GMT+1.

 

3. Hammerson Plc (LON: HMSO)

The property development company has a dividend yield of 11.03 per cent and a market capitalisation of £1,523.90 million. The shares have a PE ratio of 1.13x per cent.

In an update on rent collection, the company said that for FY 20, 89 per cent of the billable rents had been collected, and for the first half of 2021, 68 per cent has been collected. For the third quarter, initial rent collection was at 47 per cent, ahead of what was collected in Q1 and Q2. For FY21, year-to-date rent collection stood at 62 per cent.

The shares of the company were down 0.27 per cent and were trading at GBX 36.59 on 26 July at 12:21 GMT+1.

 

4. Plus500 Ltd (LON: PLUS)

The shares of the global fintech company have a dividend yield of 8.03 per cent and a market capitalisation of £1,369.95 million. The shares have a one-year return of 6.50 per cent and a PE ratio of 3.89x.

For the six months ended 30 June, the company’s customer income fell to $379.2 million compared to $556.9 million a year ago. Group revenue fell to $346.2 million compared to $564.2 million a year ago.

The shares were up 0.44 per cent, trading at GBX 1,383.50 on 26 July at 12:21 GMT+1.

 

5. Direct Line Insurance Group Plc (LON: DLG)

The shares of the insurance company have a dividend yield of 7.65 per cent and a PE ratio of 11.20x. The shares have a market capitalisation of £3,892.73 million.

The company’s motor insurance premiums fell 10.6 per cent in the first quarter of 2021 to £367.3 million from £410.9 million. Home insurance premiums grew 1.8 per cent to £140.3 million from £137.8 million a year ago. Group premium fell 4.7 per cent to £752.3 million from £789.6 million a year ago.

The shares of the company were down 0.20 per cent at GBX 295.70 on 26 July at 12:21 GMT+1.

 

6. GCP Infrastructure Investments Plc (LON: GCP)

The shares of the investment fund have a dividend yield of 7.03 per cent and a market capitalisation of £914.88 million.

For the first half of 2021, the company’s profit fell to £3.8 million from £17.2 million in the same period a year ago. The previous revolving credit facility was replaced by new revolving credit arrangements up to £165 million.

The shares of the company were up 0.77 per cent at GBX 105 on 26 July at 12:21 GMT+1.

 

7. CMC Markets Plc (LON: CMCX)

The shares of the financial services company have a dividend yield of 6.78 per cent and a market capitalisation of £1,315.73 million. The shares have a one-year return of 22.01 per cent and a year-to-date return of 11.24 per cent. They have a PE ratio of 7.08x.

For the year ended 31 March 2021, the company’s profit before tax increased 127 per cent to £224 million from £98.7 million a year ago. Dividend per share increased 104 per cent to 30.6 pence from 15 pence a year ago.

The shares of the company were down 0.22 per cent, trading at GBX 450 on 26 July at 12:21 GMT+1.

 

8. Centamin Plc (LON: CEY)

The shares of the gold mining company have a dividend yield of 6.33 per cent and a market capitalisation of £1,193.98 million. The shares have a PE ratio of 10.55x.

For the three months ended 31 March, the company’s Surkari gold mine gold production was 104,047 ounces, which was in line with the guidance for 2021. It generated revenue worth $190 million from gold sales of 106,573 oz.

The shares of the company were up 1.50 per cent, trading at GBX 101.50 on 26 July at 12:21 GMT+1.

 

9. ContourGlobal Plc (LON: GLO)

The shares of the power generation company have a dividend yield of 6.22 per cent and a market capitalisation of £1,274.86 million. The shares have a PE ratio of 110x.

For the quarter ended 31 March 2021, it would pay a dividend of 4.465 cents per share / 3.1675 pence per share, amounting to $29.3 million, in keeping with the company’s commitment to an annual increase of 10 per cent in per share dividend. Its adjusted EBITDA increased to 4.6 per cent from $172.7 million to $180.6 million.

The shares of the company were trading at GBX 195.80 on 26 July at 12:21 GMT+1.

 

10. Jupiter Fund Management Plc (LON: JUP)

The shares of the fund management group have a dividend yield of 6.03 per cent. It has a one-year return of 10.48 per cent and a market capitalisation of £1,569.55 million.

For the three months ended 31 March, the company’s assets under management (AUM) closed at £58.8 billion, recording a £0.1 billion increase from 31 December 2020. Net outflows for the period amounted to £0.8 billion.

The shares of the company were trading down by 0.83 per cent, at GBX 285.20 on 26 July at 12:21 GMT+1.