Listed below are 3 of my favorite FTSE 250 dividend shares for passive revenue

The FTSE 250 is a treasure trove for revenue buyers. It boasts a considerably greater variety of high-yielding dividend shares in comparison with its bigger sibling. Living proof: 14 of its listings have a yield above 8%, versus solely 4 on the FTSE 100.

However whereas excessive dividend yields is perhaps tempting, I choose to give attention to these with sustainable payouts which have development potential.

These are my high three picks.

Main Well being Properties

Main Well being Properties (LSE: PHP) might be probably the most dependable dividend-paying inventory in my portfolio. As an actual property funding belief (REIT) it’s required to pay 90% of its income again to buyers as dividends.

Please word that tax remedy relies on the person circumstances of every shopper and could also be topic to vary in future. The content material on this article is offered for data functions solely. It’s not meant to be, neither does it represent, any type of tax recommendation.

For the previous twenty years, dividends have elevated in all however two years. Presently, its yield is 7% and it paid out 6.7p per share final yr. This yr it’s anticipated to extend to six.9p.

Nevertheless, excessive inflation and a struggling housing market haven’t been type to the REIT. Current outcomes revealed a pointy drop in earnings, leaving the belief unprofitable. The share worth has slid 30% over the previous 5 years. 

With earnings per share (EPS) forecast to get well this yr, issues could enhance. However the loss does threaten dividends, which is one thing I’m maintaining an in depth eye on.

May the brand new Labour authorities assist flip its fortunes round? I hope so — within the meantime, I’ll hold having fun with these dividend funds.

ITV

ITV (LSE:ITV) additionally boasts an honest yield, at 6.3%, however has been much less dependable than Main Well being. 

The corporate has struggled over the previous 5 years, with the share worth down 30%. Subsequently, dividends have been lower or lowered 10 instances up to now twenty years.

Altering shopper habits and a extremely aggressive streaming {industry} have examined it. However with the agency being behind among the hottest TV exhibits within the UK, its Studios arm has revived its fortunes lately. With a rising viewers, the shares have grown 26.5% this yr.

Now buying and selling at 70% under truthful worth with a price-to-earnings (P/E) ratio of seven.2, its prospects appear good. Sadly, industry-specific dangers threaten its possibilities. With restricted development forecast within the broadcasting {industry}, analysts count on a 28% decline in ITV’s earnings over the approaching yr.

Can a brand new season of Love Island reignite its fortunes? I can’t say for certain. However for now, the dividends are delivering me first rate returns.

TPICAP

TPICAP (LSE: TCAP) is a London-based agency providing international monetary middleman companies.

It has the bottom yield on my listing at 6.1% and funds have been steady however up and down. The pandemic pressured a 50% lower but it surely’s recovered most of that since. Nevertheless, a excessive degree of debt mixed with declining money flows threaten future funds.

Thankfully, the shakey dividend outlook is made up for in worth development. The share worth is up 52% up to now 12 months. Following a troublesome couple of years post-Covid, it bottomed out at £1.05 and has since recovered 130% to £2.40. 

With earnings anticipated to extend 67% within the coming yr, its ahead P/E ratio is 10.7 — under the UK Capital Markets {industry} common of 13. In its H1 outcomes launched earlier this month, internet revenue jumped 38% and EPS rose from 8.4p to 12p.

If it may well keep that robust efficiency, then it ought to be capable of pay greater dividends.