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I’m searching the FTSE 250 for the best high-yield shares to buy today. Here are two dividend stars I’m looking to buy when I have spare cash to invest.
Bank of Georgia
HSBC and Santander are a couple of top UK banks investors can buy to capitalise on fast-growing emerging markets. Bank of Georgia (LSE:BGEO) is a lesser-known one I have my eye on today.
The country’s banking sector has undergone significant reforms in the past 10 years. This — along with soaring demand for financial products — makes Bank of Georgia shares very attractive right now.
Loan growth across its retail banking, corporate banking, and small-to-medium sized enterprise (SME) banking divisions all rose by mid-to-high teen percentages in the first quarter (at constant currencies). This in turn helped operating income to rise by 42.4% from the same 2022 period.
The Georgian bank’s success also reflects the huge investment it has made in mobile and online banking over the past decade. The number of monthly active digital users here soared 31.6% year on year in quarter one, to 1.2m.
I don’t think the company’s huge earnings potential is reflected in its rock-bottom valuation. Today its shares trade on a forward price-to-earnings (P/E) ratio of 4.4 times.
At current prices, Bank of Georgia shares also carry a large 9.3% dividend yield. The business looks in great shape to meet brokers’ dividend projections, too. The predicted payout is covered 2.8 times by anticipated earnings.
Fresh turbulence in the global economy could temporarily damage profits growth. But I still think this is a top value stock to buy.
Greencoat UK Wind
Renewable energy stock Greencoat UK Wind (LSE:UKW) is another FTSE 250 share offering terrific all-round value. It trades on a forward-looking P/E ratio of 7.4 times. Furthermore, its dividend yield for this year stands at an impressive 6.1%.
Like Bank of Georgia, dividend forecasts here look pretty robust as well. Predicted payouts are covered 2.1 times by anticipated earnings, inside the safety benchmark of two times and above. The firm’s ultra-defensive operations give dividend estimates added strength too.
What also makes Greencoat UK Wind such a great income stock today is its commitment to raise dividends in line with retail price inflation (RPI). Okay, fresh data today suggests inflation is beginning to moderate. But it remains well above recent levels and could remain there due to structural issues affecting the UK economy.
This is a company I think could deliver exceptional returns over the long term, too, as demand for green energy steadily rises. It owns a portfolio of 46 onshore and offshore wind farms, and has a policy of investing surplus cash flow into increasing its asset base.
Strict planning rules around onshore wind farms could affect profits growth further out. But signs are emerging that regulations might be scaled back as Britain strives to hit its net zero targets. On balance I think Greencoat is a top dividend stock to own.
