Recruitment specialist PageGroup (LSE: PAGE) has weathered the pandemic in good shape, given the impact on the jobs market. The stock lost half its value in last year’s March crash, but has been a strong recovery play since.

The PageGroup share price is up 44% over a year, although it still trades around 7% lower than three years ago. However, the top FTSE 250 stock is up a thumping 9.99% this morning, after CEO Steve Ingham reported “increased confidence in our outlook for the year” and predicted full-year operating profit of between £90m and £100m.

The PageGroup share price tempts me

PageGroup has demonstrated the importance of geographical diversification, as gross profits in the Asia-Pacific region raced ahead of Europe and the US, growing 15.3% and by a thumping 45% in China. By contrast, US profits fell 9% and UK profits 11%.

March was a record month in Germany, Italy, Spain and South East Asia, despite continued and increasing Covid restrictions. PageGroup looks solid with net cash of £136m, up from £83m in Q1 last year.

I can see why this is the top performing FTSE 250 stock this morning. Assuming the global economy recovers this year, PageGroup looks a good way to play it.

My biggest concern is that the recovery is priced in after strong share price growth, while lockdowns have returned in a number of the group’s markets. Today’s jump could be premature. Gross profit may be up 31% on a year ago but it is still down 2% on 2019. However, I remain optimistic.

I’m not so sure about the travel industry though. I’ve been wary about taking a punt on this ravaged sector, although some bargain hunters have benefited. Vaccine hopes have driven the sector higher in the last six months.

I’m not buying this top FTSE 250 stock

Europe’s largest travel company TUI (LSE: TUI) is up 108% in the last six months. However, investors are running for cover today.

The TUI share price is down almost 7% after the Anglo-German travel group announced it will issue up to £350m of convertible bonds to boost liquidity as Covid travel restrictions drag on. The bonds will pay between 4.5% and 5% a year, until April 2028. 

This is TUI’s second fundraising of the year. In January, it raised €545m from shareholders in a €1.8bn financing package agreed with the German government, banks and its biggest shareholder, Alexey Mordashov.

While TUI is among the top performing FTSE 250 stocks in the last six months, I’m staying grounded. The group expects peak summer capacity to be 75% of 2019 levels this year, but that looks optimistic given continuing restrictions.

I could be unduly pessimistic. There is massive pent-up demand for travel, and bookings will go crazy when restrictions ease. Recent investors have been rewarded for their bravery, while this year’s fundraising should help TUI weather short-term storms. I still think PageGroup is the safer recovery play.

The post I’d buy one of these top FTSE 250 stocks today, but I’m shunning the other appeared first on The Twelfth Magpie.

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Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

However, the most recent figures from the Office of National Statistics has revealed an encouraging trend. The average number of jobs openings in the UK alone has shot up by 68% over the past six months, increasing from 304,000 in April 2020 to 512,000 today.

Seeing employment levels begin to return is undoubtedly good news for the economy in general. But it is excellent news for one FTSE 250 stock in particular in my opinion.

A global leader in talent recruitment

PageGroup (LSE:PAGE) is an international recruitment specialist. The business is focused on providing qualified individuals to fulfil specific jobs across a wide range of industries. After 40 years of being in business, the stock’s brand has become well known within the job recruitment space, with many customers increasing their reliance on its services each year.

Over the years, the company has developed a deep pool of talent to provide for its customers. Many recruitment agencies can provide general staffing quickly. But PageGroup has expanded its reach to ensure that it can offer talented individuals to fulfil roles within a business at any level. From low-level clerical workers all the way to top-tier executives.

Risks to consider

A critical part of PageGroup’s success is its strong reputation for finding the right people for the right job. This has made the shares in this UK business a popular choice amongst talent acquisition teams at companies. But it also has created a certain level of expectation that places additional pressure on the business.

Suppose the firm cannot find or provide qualified individuals to fulfil new roles. Or even worse, it gives an individual that is not capable of meeting customer expectations. In that case, its customers will turn to competitors to acquire the talent they need. This ultimately enables PageGroup’s rivals to begin developing relationships with its own customers, leading to potential revenue loss in the future. This is a risk that will always threaten the stock, I feel.

Another risk to consider is the stock’s international operations. The majority of the firm’s operating profit is generated outside the UK. Consequently, it is exposed to foreign exchange rate risks that can substantially impact the overall performance of the business.

Should I buy the FTSE 250 stock?

In my opinion, as the UK job market begins to return, PageGroup looks like a fantastic way to profit from the rising trends. Especially since the boost in business will likely result in the return of its historical 3% dividend yield.

But the talent recruitment market is highly competitive. While its reputation grants it some competitive advantages, they don’t seem substantial enough to me. Therefore I won’t be adding these UK shares into my portfolio. But I will definitely be keeping an eye on it.

The post UK shares: 1 FTSE 250 stock to watch in 2021 appeared first on The Twelfth Magpie.

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Zaven Boyrazian does not own shares in PageGroup. The Motley Fool UK has no position in any of the shares mentioned. 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.

Over the past five years, this recruiter has reported average earnings per share growth of nearly 18% per annum and the dividend has surged from 10.5p to 22.3p (based on City estimates for 2019). 

It doesn’t look as if growth is going to slow down any time soon. Today the company recorded an 11.4% increase in half-year operating profit as it benefits from rising demand for its services around the world. 

Global diversification

Page’s global diversification has been a huge positive for the business over the past five years. As hiring growth has slowed in its most challenging markets, the company has switched resources to faster-growing markets, such as the US.

Indeed, commenting on today’s results, CFO Kelvin Stagg said that while “fee earner headcount fell by 81,” or 1.3%, during the first six months of the financial year, headcount fell mainly in markets that were “more challenging, such as Greater China and the UK.” Meanwhile, Stagg reported that the company continues “to invest in markets where we saw the greatest growth, such as the US and India.” 

This is all part of Page’s long-term plan to increase its headcount to 10,000 employees (up from around 6,000 at present) and grow sales to £1bn with £250m of operating profit. For the first half of the year, group operating profit increased by 11.4% to £75.6m with a 12.5% increase in reported rates. 

What’s most impressive about this business is its cash generation. Page ended June with net cash on the balance sheet of just under £82m. Management is looking to return a chunk of this cash to investors.

Today it has announced a special dividend of 12.73p per share, on top of its regular distribution (which is also rising 4.9%) of 4.3p — the fifth consecutive year of special dividends.

The total distribution amounts to a cash return to shareholders of £54.9m, or 17p per share. For the full-year, analysts believe the company’s dividend will total 22.8p including a final year-end payout, which translates into a potential dividend yield of 5.2%. 

Double your money

If Page is not for you, then another stock I believe could be an excellent investment for your portfolio today is financial services group CYBG (LSE: CYBG). 

After acquiring the Virgin Money brand last year, analysts are expecting CYBG to report a substantial profit of 24.4p per share for 2019 which, if achieved, would put the stock on a forward P/E of 6.2. Analysts also believe that the company has the potential to double its dividend payout for the year to 6.4p, giving a dividend yield of 4.3% at the current price. 

These metrics are extremely attractive, and it only gets better. As well as trading at a mid single-digit P/E ratio, shares in CYBG are also dealing at a price-to-tangible-book-value of less than 50%. This might be appropriate if the bank was losing money, but with analysts expecting a net profit of £342m for 2019, rising to £358m for 2020, it does not make any sense at all.

These metrics imply that the stock has the potential to double from current levels, and with a dividend yield of 4.3% on offer, investors will be paid to wait for the turnaround. 

The post £5k to invest? I’d consider these two FTSE 250 dividend stocks yielding 5%+ appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

A new Page

The FTSE 250 company warned that 2019 operating profits will be towards the lower end of market forecasts, “given current macro-economic conditions”, which overshadowed good news elsewhere in today’s trading update. Highlights included 7.4% growth in Q2 group gross profit to £224.6m, amid a record quarter for the group, as 16 countries grew by more than 10%.

The £1.41bn group has a truly international spread of businesses covering the Americas, Europe, the Middle East, Africa and Asia-Pacific. Inevitably, some are doing better than others, with gross profit in Germany up 24%, North America up 19% and Latin America up 15%.

This offset a 2.4% drop in the UK and 1% in Greater China, which was largely down to the impact of Brexit and the US trade war. It retains a strong balance sheet, though, with net cash of £81m, up from £76m in Q1.

Recession fears

However, it has been forced to retrench, reducing its fees and headcount by 122, “to react to market conditions”. This marks a reversal on last year, when it added 619 fee earners, and 41 in Q1. The drop focused on its most challenging markets, namely France, Greater China and the UK, but it continues to invest elsewhere, particularly the US and India.

The Page Group share price is now down 27% on last year but this could be a buying opportunity, as its forward valuation is now down to 14 times earnings. Its forecast dividend yield is now 5.8%, with cover of 1.2, making this a top dividend stock. Return on capital employed is almost 50%, another good sign. The big worry is that the world falls into recession, squeezing the jobs market and recruitment. I can still see a strong buy case, although things could get tougher before they get better.

Happy at home

Investors have given today’s Q4 results from home furnishings retailer Dunelm Group (LSE: DNLM) a much calmer reception, with the share price flat despite a 15.4% rise in total like-for-like quarterly revenue and a generally positive tone to the results.

The FTSE 250 group said growth reflected “strong underlying growth in stores and online”, helped by last year’s weak comparator period and favourable weather. These results covered the 13 weeks to 29 June, when the summer weather was patchy and people hit the shops instead. The current warmer weather may reverse that.

Nicely furnished

Dunelm, which has around 170 superstores and three high street stores, has defied the calamitous retail slowdown and its share price is up 80% over 12 months as a result. It is shifting business online and here growth is good, up 37% on a like-for-like basis in Q4. Online revenues totalled £39m against £205.5m for its stores, making this a small but fast-growing segment.

The £1.79bn group is inevitably a bit pricey after recent strong growth, trading at 18.3 times forward earnings, while yielding 3.2%. Full-year profits are expected to be at the upper end too, while brokers are talking about a special dividend in the autumn. It faces tough competition, though.

CEO Nick Wilkinson has warned of a short-term impact of the “uncertain political climate” on consumer spend, but otherwise the future looks bright.

The post This FTSE 250 growth stock has crashed 15% today. I’d buy it anyway appeared first on The Twelfth Magpie.

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Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Now, though, the company appears to have a sound strategy through which it’s forecast to deliver improving levels of profitability. As such, it could outperform the FTSE 100, and may be worth buying alongside another cheap share that reported encouraging results on Wednesday.

Improving performance

The company in question is recruitment business PageGroup (LSE: PAGE). Its full-year results showed a revenue rise of 14% to £1,549.9m, with gross profit increasing 14.5% to £814.9m. This represented a record year for the business, delivering growth across all five of its key markets. For example, growth in the US was 25%, it reached 19% in China, while in Germany it was 29%.

During the year, the company increased its number of fee earners by 11.3% to 619. Its headcount is now at a record level of 7,772, while there’s been an improvement in fee earner to support staff headcount ratio.

Looking ahead, PageGroup is forecast to post a rise in earnings of 16% in the current year. Since it trades on a price-to-earnings (P/E) ratio of around 13, this suggests that it could offer good value for money. It continues to focus on expansion and, while macroeconomic risks may be high at the present time, its long-term growth potential seems to be high. This could lead to a rising share price over the coming years.

Growing industry

As mentioned, the performance of the Rolls-Royce share price over recent months has been highly volatile. The company has been subject to changing investor sentiment regarding the global growth outlook, although it has been able to make steady progress with the implementation of its revised strategy. It has reduced headcount, while continuing to invest heavily in its pipeline. Together, these changes could improve its long-term financial performance, while creating a business with a stronger competitive advantage versus industry peers.

With defence spending due to increase at a faster pace in future and the number of civil aircraft forecast to rise rapidly over the long run, Rolls-Royce seems to have significant growth catalysts. In the current year, it is forecast to deliver a 118% rise in earnings, which puts its shares on a price-to-earnings growth (PEG) ratio of around 0.3. This suggests that the stock offers a wide margin of safety, and may have FTSE 100-beating potential.

Certainly, there are risks ahead from challenges such as increasing global protectionism and a slowing Chinese growth rate. However, with such risks appearing to be priced into the company’s valuation, it could deliver impressive total returns in the long run. As such, now could be the right time to buy it.

The post Why I think the Rolls-Royce share price is one of the cheapest stocks in the FTSE 100 appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. 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.

It’s mighty tempting for dividend investors to storm right into the FTSE 100 without a second thought.

Aside from the prestige that comes with holding stock in some of Britain’s most distinguished blue-chips, dividends from London’s elite index continue to hit record after record and are predicted to continue doing so for some time yet.

It’d be a mistake, though, to limit your shopping basket by not forensically foraging outside the Footsie for other great income stocks. With this in mind I’ve searched the FTSE 250 for some big dividend payers that could deliver some stunning returns in the years ahead. 

In great health

I like Assura (LSE: AGR) a lot. For income chasers it offers that essential quality of reliable earnings growth year after year thanks to its role in the healthcare sector (it designs, builds and manages primary healthcare properties the length and breadth of the country).

It remains committed to growth and thanks to its robust balance sheet the business is able to embark on an aggressive expansion drive. In 2018, Assura splashed out a total £175m to secure 45 new medical centres and develop two further assets, taking the total number of healthcare facilities on its books to a whopping 553 with a total annualised rent roll of £99.8m (versus £87.4m a year earlier).

Encouraged by its expansion drive and the defensive nature of its operations, City brokers expect Assura’s profits to keep growing over the next few years at least, thus keeping the firm’s long-running record of dividend growth up and running. And this means that the healthcare star sports an inflation-smashing yield of 4.6% for this year alone.

Turn the page

If you’re hunting for bigger near-term yields, though, then PageGroup (LSE: PAGE) may well be right up your street.

City analysts are expecting earnings at the recruitment giant to keep rising by double-digit percentages in 2019, laying the groundwork for predictions of more weighty dividend growth and thus a gigantic 6.4% yield.

I’ve long talked up PageGroup’s investment appeal because of its exposure to fast-growing economies around the globe and I was pleased to see that January’s trading update revealed more of the same.

Sure, tough economic conditions in the UK are hampering performance in its home territory and gross profit fell 1.7% in 2018. However, stunning growth elsewhere — PageGroup produced record results in 23 countries in which it operates last year — helped to drive gross profits at group level 14.5% higher. And in its so-called high potential territories of the US, Germany, Latin America, Greater China and South East Asia, profits surged by a collective 25% year-on-year.

Clearly the jobs giant is on the up and up, and with it aiming to boost its global headcount to 10,000 from the all-time high of around 7,800 to capitalise on these fertile markets, there should be plenty more to come.

The post Forget the FTSE 100! I think these FTSE 250 dividend stocks could help you get rich appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

My research has identified three FTSE 250 dividend stocks that could be of interest. I reckon this trio could deliver a market-beating mix of income and growth over the coming years.

A global view

Recruitment firm PageGroup (LSE: PAGE) may have its roots in the UK, but today it’s a truly global business. That means the group’s exposure to local risks, such as Brexit, should be limited.

Trading figures released today suggest to me that this approach is still working well. During the final quarter of 2018, gross profit rose by 15.4% compared to the same period a year earlier.

Highlights included a 22% rise in Asia Pacific and a 32% increase in the USA. Even the UK managed a 2.1% gain, despite Brexit uncertainty dampening hiring activity.

Despite this solid performance, the shares are down 5% at the time of writing. One reason for this is probably that today’s figures are in line with existing market forecasts. So there’s no surprise reason for short-term traders to push up the share price.

However, for Foolish long-term investors, I think this diversified recruiter could be worth a look. PageGroup ended the year with net cash of nearly £100m, and offers a forecast dividend yield of 5%. I’d buy.

This compares very well

One of my favourite technology stocks is price comparison website Moneysupermarket.com Group (LSE: MONY). I like it because it’s very profitable, with an operating margin of 30%. Capital expenditure is also limited, because the only thing the firm has to pay for is marketing and software development.

These qualities mean that Moneysupermarket generates a lot of surplus cash. This has enabled management to increase the dividend by an average of 12.6% per year since 2012. This has provided shareholders with an income that’s risen much faster than inflation or wages.

One potential concern is that this business is now fairly mature, with limited growth potential. This may be true, but I don’t think investors should rule out future growth. The company is currently investing in its next generation of comparison services, which are said to include automated switching and mortgage comparison.

Even without these new offerings, the group still managed to generate 6% revenue growth during the first nine months of 2018.

With new products and services on the way, I think the future looks promising. In the meantime, the shares offer a well-supported yield of 3.7% and remain on my buy list.

A recovery buy

For shareholders in temporary power generation group Aggreko (LSE: AGK), the last six years have been tough. The group’s share price has fallen by 65% from its all-time highs of 2,300p+ in September 2012.

However, the group’s underlying revenue rose by 11% during the first nine months of 2018 and Aggreko has reported a number of new contract wins recently. Broker forecasts suggest profits could rise by 7% in 2019.

I see this as a good long-term business that’s large enough to adapt to changing market conditions. The shares look affordable to me, on 14.5 times 2019 forecast earnings, and with a 3.6% dividend yield. Now could be a good time to buy, before the market wakes up to this long-awaited turnaround.

The post Have £3k to invest? 3 FTSE 250 dividend stocks I’d buy and hold for 10 years appeared first on The Twelfth Magpie.

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Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Moneysupermarket.com. 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.

Outstanding profits growth

In the article mentioned at the start of this piece, I specifically outlined the impressive progress that PageGroup is making in overseas territories. And I’m delighted to say in its core Europe, Middle East and Africa (EMEA) region — responsible for around 46% of group gross profits — the recruiter’s bottom line swelled by 20.9% at constant currencies in Q3.

Growth on a comparable basis in the Americas swelled by a jaw-dropping 30.1% year-on-year, while performance in its second-largest region of Asia Pacific couldn’t be described as sluggish either, profits here having jumped 27.7%. It even continues to perform resiliently at home despite continued uncertainty related to Brexit, and its UK division actually returned to growth during July-September with gross profits rising 0.8%.

And as a result of its all-round strength, PageGroup said that it expects operating profit for the full year “to be marginally ahead of consensus.”

While broker estimates have remained unchanged in the immediate aftermath of these fresh trading numbers, with earnings rises of 17% predicted for both 2018 and 2019, these forecasts are likely to receive a shot in the arm. PageGroup’s a hot buy right now and a low forward PEG reading bang on the bargain benchmark of 1 adds extra appeal.

5% dividend yields

It wouldn’t be a stretch to expect dividend predictions to be upgraded either, given the strength of PageGroup’s balance sheet (net cash, pre-dividends, bubbled to £122m as of September from £87m a year earlier). But at the moment the number crunchers are anticipating payouts of 26.3p and 29.2p per share for this year and next respectively, projections that still create monster yields of 4.8% and 5.4%.

Needless to say, I believe buying PageGroup is a better investment decision than sticking your money in a cash ISA given the paltry interest rates on offer from such products.

Another top FTSE 250 share that would be a better bet than a cash account is Unite Group (LSE: UTG), as Britain’s resilience as a go-to destination for students across the world makes the business a likely cert to deliver strong profits growth to shareholders too. Just last week the firm lauded the “continued strong demand for high quality student accommodation” here in the UK. 

Dividends have ballooned at Unite in recent years and, supported by predictions of profits growth of 15% and 13% in 2018 and 2019 respectively, City brokers expect payouts to keep climbing. The 28.6p per share payment predicted for this year would mark a significant upgrade from last year’s 22.7p, and it yields a chunky 3.3%. The dial moves to 3.9% for 2019 thanks to an expected 33.3p dividend too.

At current prices, Unite sports a prospective P/E ratio of 24.8 times. Toppy on paper, no doubt. But given the chances of strong and sustained profits, and thus dividend, growth, it’s still a terrific pick in my opinion.

The post Forget the cash ISA! These FTSE 250 dividend stocks will protect your savings much more effectively appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Cheap for a reason?

At first glance, the valuation indicators look attractive. With the share price close to 347p, the forward price-to-earnings (P/E) ratio sits near 10, and the forward dividend yield is around 7.5%. But I think the firm deserves its low rating and I wouldn’t touch the stock with a barge pole. I said in an article in August that the firm’s business looks unattractive because the letter service is in structural decline and the parcel business operates in a highly competitive market.

I see no point whatsoever in treating the stock as a long-term buy-and-hold investment because earnings are fluctuating as the business struggles to survive. Instead, I’d rather take my chances with international recruitment consultancy Pagegroup (LSE: PAGE), which has been posting some impressive figures lately.

Today’s third-quarter trading update reveals constant currency gross profit up almost 20% compared to the third quarter last year. Most regions are doing well, with gross profit up in percentages measured in the late teens and early twenties, apart from the UK where the improvement was only 0.8%. However, the firm’s performance in Britain won’t make or break the company. During the period, around 46% of profits came from Europe, the Middle East and Africa, 22% from the Asia Pacific region, 17% from the UK, and 15% from the Americas.

Growth on the agenda

Pagegroup is making hay while the sun is shining and added 242 new fee-earners in the quarter, taking the total headcount to 7,718. Growth is very much on the agenda and chief executive Steve Ingham said in the report that the firm is aiming for its vision of a “10,000 headcount, £1bn of gross profit, and £200m-£250m of operating profit.” 2018 operating profit, he said, should come in “marginally ahead of the consensus of current market forecasts.”

“Ahead” statements are nearly always welcomed by the stock market and I reckon the strong operational progress we are seeing could go on to drive the shares higher. City analysts have robust growth in earnings pencilled in close to 20% for this year, and again for next year. Meanwhile, at today’s share price of 549p or so, the forward P/E rating for 2019 is just over 15, and the forward dividend yield is a tempting-looking 5.3%. If the company can keep up its growth rate, I think the valuation looks fair.

Of course, the recruitment industry suffers from the effects of cyclicality, but there’s no sign of any weakness in trading right now. In fact, the opposite is true. Business is booming and the company has been rewarding investors with a rising ordinary dividend and special dividend payments over several years. I’d much rather go for a fair price with a strong underlying business like Pagegroup than a low valuation and a weak underlying business such as Royal Mail.

The post Is the Royal Mail share price a bargain or should I buy this dividend-growing mid-cap? appeared first on The Twelfth Magpie.

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• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

A sum of £8,546.20 per year (that is, if you even qualify for the full amount) is all that the new pension scheme currently givesyou. And as the financial strains of a rapidly-ageing population worsen, the government’s ability to raise pensioner payouts in line with inflation will inevitably diminish, while the age at which Britons will be eligible to receive any payments is likely to head north of 70 within the next few decades.

As I said in a recent article, investing in stocks is absolutely critical to protect yourselves from a future living in poverty. It may sound dramatic, but given the pathetic size of the State Pension and the frankly-laughable yields on offer from cash accounts, this is very much the reality for millions of Britons.

Jobs giant

One way to make it more likely that you can generate handsome investment returns in the years ahead is by investing in PageGroup (LSE: PAGE).

I’ve tipped the recruitment giant time and time again on the back of its sterling progress around the globe, its robust position in emerging markets in particular making me optimistic over its long-term profits outlook.

My confidence in PageGroup was certainly reinforced following the release of recent interim financials. The FTSE 250 firm saw pre-tax profit boom 18.1% between January and June to £67.2m, with strength in its overseas divisions offsetting the impact of current Brexit-related troubles in the UK.

The result encouraged it to pay another special dividend of 12.73p per share on top of the interim dividend of 4.1p per share (which was up 5% year-on-year). So it comes as no surprise that City analysts are forecasting a total dividend of 26.2p for 2018, up from 25.23p last year and a figure that yields a chunky 4.3%.

And it’s easy to see earnings — which are predicted to rise 17% this year — as well as dividends continuing to stream higher as PageGroup bulks up its global workforce.  A forward P/E ratio of 19.7 times is expensive on paper, but in reality is pretty undemanding given the likelihood of it delivering titanic returns right up to when you are ready to retire.

Another income star

Countryside Properties (LSE: CSP) is another great dividend share from the FTSE 250 to consider buying today.

Shareholder rewards have gone gangbusters in recent years, culminating in the 8.4p per share dividend for the year to September 2017. Another hefty rise to 10.9p is predicted for the current year, meaning that investors can latch on to a juicy 3.4% yield. And for the shortly-arriving fiscal period a 4.1% yield is offered thanks to an estimated 13.2p dividend.

These forecasts are supported by an anticipated 29% annual earnings improvement this year and 20% in fiscal 2020, readings that also create a forward P/E ratio of just 9.1 times, making it ideal for value seekers.

One thing is for sure: the UK’s homes shortage is likely to get a lot worse before it gets better. And this means that specialists in new-build homes like Countryside are in great shape to keep delivering outstanding profits, and thus dividend, expansion for many years to come.

The post Forget the State Pension: these cheap FTSE 250 dividend shares could fund your retirement appeared first on The Twelfth Magpie.

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• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.