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I’m making a list of the greatest FTSE 100 And FTSE 250 Stocks to buy for second income. Here are several things I would love to buy the next time I have the cash to invest.
Economic turmoil in China is having an impact on commodity demand in the short- to medium-term. but I’m still eager to add Anglo American for my portfolio.
That’s not just because today the mining giant delivered an FTSE 100-pitching 4.5% dividend yield for 2023. I am attracted primarily because of the bright demand outlook for industrial metals over the next 20 years.
Conditions such as growing green economy, widespread urbanization and increasing digitization should lead to increased sales of copper, iron ore and nickel. These are all metals that Anglo American produces from its global network of projects.
residential landlord granger Offers a low upfront dividend yield of 2.8%. But I still think it’s a great income stock to buy because of its solid history of payout growth (pandemic aside).
Its progressive dividend policy is due to its strong position in the defensible residential market (the FTSE 250 firm is the UK’s largest listed landlord). This is also because rents have gone up sharply recently.
In fact rental growth continues to accelerate. Data from lettings platform Goodlord this week showed the average rent was up 10% in the 12 months to August.
The dismal supply scenario means that tenant costs will continue to rise. That’s why I expect Grainger to post more solid profit growth, despite the threat of rising manufacturing costs.
FTSE 100-quoted diego It also has a proud record of dividend growth. In fact the beverage company — which projects a nice dividend yield of 2.6% for 2023 — has raised its annual payout every year for nearly three decades.
The declining consumption of alcohol in the West poses a threat. Yet rising spending in developing markets could undercut this and provide excellent long-term profit growth. Statista analysts expect sales in Asia to increase by about $120 billion between now and 2027.
the enduring popularity of brands such as Captain Morgan, Guinness And Smirnoff Give Diageo the means to pay an increasing dividend every year. The company can raise prices on these labels even in tough times. And these market-leading brands have hit it off at the top to win new customers in emerging regions.
Target Healthcare REIT
care home operator Target Healthcare REIT This is another FTSE 250 stock that I own. I bought it to take advantage of the rising life expectancy in the UK and the country’s growing elderly population.
I am considering to buy more after the huge weakness in the share price. Today its dividend yield stands at a whopping 7.8% for this financial year (till June 2024).
This partly reflects real estate investment trust (REIT) regulations that demand at least 90% of annual rental profits be distributed as dividends.
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Rising interest rates could keep Target Healthcare’s borrowing costs under pressure. Yet I still believe, like those other FTSE 100 and FTSE 250 stocks, this is a top stock to hold for the long term.
Post 4 FTSE 100 & FTSE 250 Stocks I Would Buy For Long Term Passive Income! appeared first on The Motley Fool UK.
Royston Wild has positions in Diageo plc and Target Healthcare REIT plc. The Motley Fool UK recommends Diageo plc. The views expressed on the companies mentioned in this article are the author’s own and therefore may differ from the official recommendations made in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a wide variety of insights can make us better investors.
Motley Fool UK 2023