When targeting passive income from dividend shares, long-term reliability’s the main thing I look for.Naturally, it’s harder to find that on the FTSE 250. The smaller-cap index hosts less-established companies, many of which haven’t been around as long as their FTSE 100 counterparts.
Still, ignoring it completely could mean losing out on some undiscovered opportunities.
Leading FTSE stocks are like iPhone’s — you know what you’re getting. Stocks on the 250 are more like Android phones — there’s some excellent options, but if you don’t do your research, you could end up disappointed.
With that in mind, here’s three dividend shares that tick the necessary boxes when it comes to reliable income.
| Stock | Yield | Cash coverage | Payout (years) |
|---|---|---|---|
| Henderson Far East Income | 9.5% | 1.02 | 38 |
| Victrex (LSE: VCT) | 8.3% | 1.3 | 30 |
| Workspace Group | 7.4% | 1.05 | 31 |
But are those statistics alone enough to go on?
Digging deeper
When I see stocks yielding over 7%, the first thing I ask is, why is the yield that high? If it’s the result of a falling share price, I could end up holding a share that’s losing value faster than it’s paying dividends.
Workspace, for example, is down 18.3% in the past six months after posting a pre-tax loss of £120.5m earlier this year. As a result, it had to cut its dividend by 8%.
It’s now undergoing a significant strategic overhaul, which (if successful) could prompt a strong recovery. It’s definitely one to keep an eye on, especially considering its excellent dividend track record. But I’d need more solid evidence of a recovery before deciding to buy.
Henderson Far East Income’s another attractive option but today I want to focus on Victrex. Following years of declining share price, renewed interest in its core product hints at a potentially strong recovery.
The high‑performance polymers specialist
Victrex makes a strong but lightweight plastic-like substance called PEEK, which is used to substitute heavy metals in cars, planes and electronics.
In H1 2026, revenue grew 1% to about £147m following a 6% volume boost. Yet underlying pre‑tax profit still fell 18% due to weaker sales, pricing pressure and foreign exchange losses.
Much of the loss was due to a £60m impairment on its China facility, highlighting the operational and execution risks it faces. Despite this, free cash flow remained positive and the interim dividend was held at 13.42p per share.
What I like about Victrex is that it’s a global leader in a somewhat niche industry. It benefits from strong demand for its specialist, medical-grade PEEK, helping ensure steady revenues.
Recently, dividend growth was paused, but it has still maintained a yield above 7% for over two years. Plus, it has strong results and sufficient cash coverage. For passive income hunters, that makes it a top option to consider.
The bottom line
For investors prepared to dig a bit deeper, there’s a wealth of attractive income options on the FTSE 250. They may have slightly higher risk profiles and require a bit more research, but the yield benefits can really pay off.
Just remember: always aim for broad sector diversification, with riskier stocks grounded in a base of solid, foundational blue-chips. With that in mind, there’s one other stock you might like the look of…
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Mark Hartley does not hold any positions in the companies mentioned.
