I have been on the lookout for high-quality dividend stocks to enhance my investment portfolio. In this article, I have compiled a list of FTSE 250 companies that have consistently paid dividends every year since at least 1994.
After careful consideration, I have narrowed down my selection to three shares that I either already own or would be interested in purchasing if I had additional funds to invest.
One of the companies that caught my eye is industrial group Bodycote (LSE: BOY), which specializes in heat treatment. Despite some cyclical risks, Bodycote is a market leader in its sector with a strong track record of successfully navigating economic cycles. The company’s international presence and standardized offerings have attracted major customers, leading to strong demand in key industries.
Another promising pick is global real estate group Savills (LSE: SVS), which provides exposure to both the UK and international property markets. With a long history dating back to 1855, Savills has evolved into a leading player in commercial real estate and high-end residential markets. The company’s recent update indicates a positive outlook for the property market, making its current share price appear attractive. Analysts forecast a dividend yield of 3.1% for 2024, rising to 3.5% in 2025.
Lastly, chemicals group Johnson Matthey (LSE: JMAT) presents a contrarian choice with its focus on catalytic converters for vehicles. While the company has faced challenges in its clean air business and growth projects, the demand for catalytic converters remains strong, especially in the heavy vehicle segment. Johnson Matthey is also venturing into hydrogen fuel cells, leveraging its experience in the field. Trading at a low valuation of 10 times forecast earnings and offering a yield of over 4%, the stock appears to be a bargain.
In conclusion, these three FTSE 250 dividend stocks offer potential for a second income stream. It is crucial to conduct thorough research and consider diversifying investments to make informed decisions as an investor.