close
close

Association-anemone

Bite-sized brilliance in every update

2 of my favorite high yielding FTSE 250 dividend stocks for November!
asane

2 of my favorite high yielding FTSE 250 dividend stocks for November!

2 of my favorite high yielding FTSE 250 dividend stocks for November!

Image source: Getty Images

I am compiling a list of the best FTSE 250 income stocks to buy in the coming days and weeks. Here are two that I will consider adding to my portfolio when I have more money to invest.

Dividend yield of 8.5%.

Despite falling interest rates, the outlook for the UK and global economies remains highly uncertain. So I think investing in some classic defensive stocks might be a good idea to aim for a solid and growing passive income.

Supermarket Income REIT (LSE: SUP) is one such stock I’m considering today. You will immediately notice that it is designed to generate a steady income from the stable food retail sector.

The company leases supermarkets to industry heavyweights such as Tesco, Sainsburyand Aldi. And more recently, it expanded into France by acquiring a portfolio of Carrefour properties, providing extra resilience through diversification.

Like a real estate investment trust (REIT)Supermarket income must pay 90% of annual rental profits as dividends. This is in exchange for certain tax advantages and can make the business a great buy for income investors.

Please note that tax treatment depends on each customer’s individual circumstances and may be subject to change in the future. The content of this article is provided for informational purposes only. It is not intended to be, nor does it constitute, any form of tax advice.

Indeed, it has increased its annual dividend every year since its IPO in the late 2010s, as the chart shows.

2017 dividend increase.
Source: TradingView

And City analysts expect further growth this financial year to 6.12p per share. This leaves the business with a whopping 8.5% dividend yield.

On the downside, Supermarket Income’s share price has fallen sharply from 2022 levels. This reflects weak investor sentiment towards the commercial real estate sector.

But by looking to buy and hold confidence for the long term, I can mitigate the risk of further weakness. I may also be setting myself up for an uptick in the sector.

In the meantime, I can look forward to some juicy dividends.

Dividend yield of 10.8%.

SDCL Energy Efficiency Income Trust (LSE: SEIT) is one of three FTSE 250 stocks with double-digit dividend yields. This deserves serious attention, of course.

This business, as the name suggests, focuses on properties that increase energy efficiency. In his own words, he invests in projects that “either provide decentralized on-site power and heat generation or projects that reduce energy demand“.

SDCL operates in a growing market as the fight against climate change intensifies. And it is well diversified by geography and technology, which helps reduce the risk of the investment. Assets range from solar projects in Vietnam and energy storage in New York to biomass boilers in the Midlands.

SEIT's diversified operations.
Source: SDCL Energy Efficiency Income Trust

The business also has a solid record of dividend growth. And it hopes to raise its full-year payout to 6.32p per share from 6.24p last year, resulting in a mammoth 10.5% dividend yield.

With interest rates falling, now might be a good time to buy the trust. But remember that an increase in inflation could limit any further rate cuts, impacting asset values ​​and company earnings.

Today, SDCL is trading at a 33.7% discount to its estimated net asset value (NAV) per share. Combined with that huge dividend yield, I think it’s a brilliant business to consider today.