8.6% dividend yields! 2 FTSE 250 dividend stocks to buy

The increasingly uncertain outlook for the global economy isn’t draining my appetite for UK shares. Why should it? There are still many London-quoted companies that could thrive, even if the economic recovery crashes. Here are two rock-solid FTSE 250 dividend stocks I’m thinking of buying today.

Green giant

I don’t just buy UK income shares based on yields over the short-to-medium term. All the stocks I invest in are ones I think will provide terrific returns over a number of years. I buy companies I’d be comfortable to own for a decade, perhaps even longer.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

This is why I’m seriously thinking of adding Greencoat UK Wind (LSE: UKW) to my Stocks and Shares ISA. It’s hard not to look at a newspaper and read something on global warming and how lawmakers are accelerating their green energy strategies. This is something that bodes well for Greencoat, a firm which (as the name suggests) invests in wind farms across the country.

As we’ve seen in recent months, wind power is notoriously unreliable, a point that has helped to push natural gas prices in the UK to recent peaks. The business of keeping the turbines spinning is also massively expensive and huge (and often unexpected) costs can be common.

But despite these threats to Greencoat’s profits, it’s still a very appealing dividend stock to own. Electricity is one of those critical commodities so demand for the stock’s services is always guaranteed. And wind turbines are, broadly speaking, a very-effective means of generating the stuff.

I’d buy Greencoat UK today because of its huge 5.2% and 5.5% dividend yields for 2021 and 2022 respectively. And I’d aim to hold it for years to come.

8.6% dividend yields

I also think Direct Line Insurance Group (LSE: DLG) is one of the best FTSE 250 stocks to buy for big dividends. Recent share price weakness has sent the company’s already-impressive dividend yields through the roof. For 2021 and 2022, it now sports yields of 8.6% and 8.3% respectively.

Direct Line is a cash machine, pure and simple. And, like Greencoat UK, its ultra-defensive operations mean it is a reliable profits generator during good times and bad too. As a consequence it has a rich track record of rewarding shareholders with market-beating shareholder payouts.

Spending on general insurance (and especially car insurance) tends to remain unchanged, even if economic conditions significantly worsen. So Direct Line could be a particularly wise buy as economic indicators in the UK worsen.

However, I’m concerned by the intense competition the insurer faces in its key markets. This limits the wriggle room Direct Line has to raise premiums and thus boost profits. Though thanks to the immense brand power of brands like Direct Line and Churchill has meant that it still comes out slugging.

I think those 8% dividend yields — as well as a low forward P/E ratio of 11 times — make it a great dip buy right now.

5 Stocks For Trying To Build Wealth After 50

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.

Click here to claim your free copy of this special investing report now!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Greencoat UK Wind. 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.

This post was originally published on Motley Fool

Financial News

Daily News on Investing, Personal Finance, Markets, and more!