In this article, I reveal four quality FTSE 250 dividend stocks I’d buy for 2022 and beyond.
Bank on it
TBC Bank Group’s 6.5% dividend yield for 2022 makes it a highly attractive dividend share to me. Compare that monster figure to the broader 2% average for FTSE 250 shares. I also like the bank’s rock-bottom forward P/E ratio of 4.7 times. I’d happily buy it based on these numbers.
Like most UK shares, TBC Bank is in danger of suffering next year if the Covid-19 crisis keeps worsening and the economic recovery falters. But I believe this danger is baked into the company’s low valuation. I’d buy this dividend stock because its key Georgian marketplace looks set for further exceptional long-term economic growth when the pandemic subsides.
Serious air time
Booming emerging market wealth levels also bode well for Airtel Africa (LSE: AAF), a major telecoms provider in sub-Saharan countries. Demand for its voice and data services is growing at a stratospheric rate and latest financials showed these revenues jump around 17% and 34% respectively in the six months to September.
I also like the efforts Airtel Africa is making to exploit the fast-growing mobile money segment. In November, it expanded its Airtel Mobile Commerce unit into Nigeria and, last week, Middle Eastern investment firm Chimera Investments ploughed $50m into Airtel’s money business to help it grow.
Today, Airtel Africa carries a meaty 4.8% dividend yield too. I think it’s a top stock for me to buy despite the growing level of competition in its territories.
Riding the building boom
It’s possible demand for Ibstock’s bricks could slump if a shortage of other building products hits residential construction rates. Still, it’s my opinion that the potential rewards on offer from this FTSE 250 stock outweigh the risks. I’m expecting this share to continue thriving as low interest rates, intense competition among home loan providers, and ongoing support from government through Help to Buy keep demand for newbuild homes rising.
This is why I already own Ibstock in my own shares portfolio. And at current prices I’m thinking of adding to my holdings. Today, this FTSE 250 stock trades on P/E ratio of 11.7 times for 2022. It also sports a chunky 4.2% dividend yield.
I’m also expecting Tritax EuroBox to have a big year as the relentless march of e-commerce continues. It could also receive a boost from the worsening health crisis as people either choose to, or are forced to, do their shopping online. This FTSE 250 share provides ‘big box’ properties in Europe that retailers and product manufacturers use to get their wares out to customers.
Tritax Eurobox is expanding rapidly to capitalise on the online retail boom too. In the 12 months to September, it added assets in Germany, Italy, Belgium and Sweden to its portfolio. I’d buy this UK property share even though a shortage of decent acquisition targets could hit profits growth. Today, the business carries a 3.8% dividend yield.
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Royston Wild owns Ibstock. The Motley Fool UK has recommended Airtel Africa Plc and Ibstock. 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.