5 FTSE 250 stocks with dividend yield of over 5%

Highlights

• Many companies listed on the FTSE250 index yield steady cash flow and pays regular dividends to their shareholders.
• A company that generates steady cash flow and revenue; and pays a regular dividend to its shareholders can be considered a passive income stream.

 

Passive income is the money generated through activities that require minimal labour and little effort from the beneficiary. It is a great way to generate additional cash flow as you pursue your primary job and business. Passive income can be earned through various ways like rental income, buy-to-let properties, or side hustles.

The stock market can also be an excellent option to consider for passive income. For example, long term investment in a company that generates steady cash flow and revenue; and pays a regular dividend to its shareholders can be considered a passive income stream.

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Many companies listed on the FTSE 250 index yield steady cash flow and pay regular dividends to their shareholders. Let us look at five mid-cap stocks that have above 5% dividend yield:

Ashmore Group Plc (LON: ASHM)

The financial sector company provides various investment services to retail and institutional clients. It manages investment on behalf of its clients in the equity and fixed income markets across the globe.

The positive momentum in the global stock market in the last one year, especially in emerging markets, has aided the company’s portfolio. Its total assets under management stood at USD 87.3 billion, while its adjusted net revenue was at £138.2 million for the six months ended 31 December 2021.

Ashmore Group Plc’s current market cap is £2,014 million, while its current dividend yield stands at 6.0% as of 15 February 2022.

Ferrexpo Plc (LON: FXPO)

The FTSE 250 listed metal and mining company is one of the leading high-quality iron ore pellets producers. It is one of the largest exporters of iron ore pellets, which is mainly used in the global steel industry.

The company reported an 18% rise in quarterly production of iron ore pellets to 3.1 million tonnes in the fourth quarter of 2021, driven by higher demand from the steel industry and positive price trends witnessed in the iron ore rate in the international market.

Ferrexpo Plc’s current market cap is £1,626 million, while its current dividend yield stands at 10.6% as of 15 February 2022.

Moneysupermarket.com Group Plc (LON: MONY)

The company operates a price comparison website in the United Kingdom. It offers different tools through web portals and apps to compare insurance and other financial products. It also offers travel deals comparison and booking services through a separate website.

The insurance segment (car and home insurance) contributes a major part of the company’s total revenue. In the nine months ended 30 September 2021, the total revenue was £238.6 million, while the insurance segment revenue was £121.8 million.

Moneysupermarket.com Group Plc’s current market cap is £1,009 million, while its current dividend yield stands at 6.2% as of 15 February 2022.

Micro Focus International Plc (LON: MCRO)

The company provides enterprise software solutions to its clients in the UK and other countries. It offers software products and enterprise applications to address different business requirements.

For the years ended 31 October 2021, the company reported total revenue of USD 2.9 billion, which was slightly lower than last year (FY20: USD 3 billion). However, the company expects positive business momentum in 2022, with a better revenue trajectory.

Micro Focus International Plc’s current market cap is £1,459 million, while its current dividend yield stands at 5.6% as of 15 February 2022.

IG Group Holdings Plc (LON: IGG)

The technology-driven company offers an online trading platform for spread betting and other products like contracts for difference (CFDs) to take advantage of the change in assets prices.

In December 2021, the company announced the proposed sales of North American Derivatives Exchange & Small Exchange to Foris DAX Markets, which owns the trading platform crypto.com. The aggregate price of the IG shareholdings in both companies is USD 216 million, and the proposed sales would give the company a significant return on investment.

IG Group Holdings Plc’s current market cap is £3,346 million, while its current dividend yield stands at 5.6% as of 15 February 2022.