Highlights
- The mid-cap focused FTSE250 index constituent companies from the different sectors that are still in the growth phase of the business cycle.
- Investing in the FTSE250 listed stocks can be a wise investment decision as investors can get a high return on investment and a regular dividend payout.
The mid-cap focused FTSE250 index constituent companies from different sectors that are still in the growth phase of the business cycle. These companies have lower market capitalisation compared to companies of FTSE 100. However, the total return generated by the FTSE 250 index is higher than compared to the FTSE 100 index in the last one year. The FTSE 250 index gave a total return of 24.50%, while the FTSE 100 index returned 20.10%.
Many FTSE 250 listed companies have an excellent business model that generates a stable cashflow and has a regular dividend payout policy. Therefore, investing in the FTSE 250 listed stocks can be a wise investment decision as these stocks still have the potential to grow and prospects to be a part of the FTSE 100 index as well.
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Also, many of the FTSE 250 companies pay regular dividends and have superior dividend yields.
Let us look at 5 stocks from the index that have regular dividend payouts and offer growth investment opportunities:
Direct Line Insurance Group Plc (LON: DLG)
The company operates in the non-life insurance segment offering different insurance products through its website and partnership network. The company is undergoing a transformational phase as it continues to take steps to become a data and technology-led insurer. It reported a gross written premium of £2,413.6 million in the nine months to 30 September 2021. The company has a positive outlook and anticipates an operating ratio of 93% to 95% in the medium term.
Direct Line Insurance Group Plc’s current market cap is £3,687.36 million, while its current dividend yield stands at 8.3% as of 16 November 2021.
CMC Markets Plc (LON: CMCX)
The financial service sector company provides an online trading platform for retail and institutional clients making financial market data accessible to its clients. For the six months ended 30 September 2021, the company expects its net operating income to be around £126 million, while its gross client income is expected to be £127 million. Also, the company announced the acquisition of over 500,000 shares of Australia and New Zealand Banking Group Limited. The company will announce its detailed half-yearly result on 17 November 2021.
CMC Markets Plc’s current market cap is £754.77 million, while its current dividend yield stands at 11.1% as of 16 November 2021.
ContourGlobal Plc (LON: GLO)
The company operates in the wholesale power generation business segment, managing thermal and renewable energy power plants. It reported revenue of USD 1,484 million, a rise of 46% in the first nine months of 2021. Higher revenue was mainly due to contribution from the acquisition of the Western Generation portfolio and positive forex variance. As a result, the company paid a dividend of 3.23p per share for the third quarter of 2021.
ContourGlobal Plc’s current market cap is £1,253.23 million, while its current dividend yield stands at 6.8% as of 16 November 2021.
Diversified Energy Company Plc (LON: DEC)
The company operates in the oil and gas segment. Its crucial oil-producing assets are located in the United States. The company’s business reported a record average daily production of 128 mboepd during the third quarter ended 30 September 2021, resulting in a significant boost in its revenue and EBITDA. Also, the company has declared an interim dividend of 4.25 cents per share for its shareholders.
Diversified Energy Company Plc’s current market cap is £876.79 million, while its current dividend yield stands at 11.7% as of 16 November 2021.
Centamin Plc (LON: CEY)
The company operates in the exploration and production of gold. Its flagship mining project is Sukari Gold Mine, located in Egypt. The company’s total gold production was at 307,821 oz, for the first nine months of 2021. Also, the company’s third-quarter production was slightly ahead of schedule at 103,546 ounces. As a result, it generated total revenue of USD 182.9 million from gold sales and is on track to achieve the 2021 production target.
Centamin Plc’s current market cap is £1,207.33 million, while its current dividend yield stands at 5.6% as of 16 November 2021.