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Transfer over FTSE 100, I reckon dividend shares on the FTSE 250 have so much to supply revenue seekers in 2026.
Mid-cap firm share costs have carried out poorly in comparison with the UK’s greatest shares over the previous 5 years too. Does this imply we might be coming into a brand new golden period for FTSE 250 buyers, by way of each development and revenue? Let’s have a look at a few potential dividend winners.
Large 8.6% yield
Once I have a look at Victrex (LSE: VCT), the very first thing I discover is the surprising five-year share worth efficiency, down a whopping 72%. However then I’m drawn to a really tasty forecast dividend yield of 8.6% — and reconciling the 2 is a little bit of a puzzler.
Digging a bit deeper, I instantly see a possible pitfall. With full-year leads to December, the high-tech polymer producer maintained its annual dividend at 59.56p. However underlying earnings per share (EPS) fell a way in need of that at simply 43.9p.
Can that stage of payout be maintained till income decide up once more? Properly, it appears like perhaps it could possibly. The corporate has a ‘Profit Improvement Plan’ underway, aiming to realize financial savings of at the very least £10m with full annual advantages in 2027.
And it speaks of “dividends maintained at present stage, supplied internet debt/EBITDA goal vary not exceeded; extra money returns out there through share buybacks or particular dividends when internet debt/EBITDA strikes sustainably beneath 0.5x“. With a brand new internet debt/EBITDA goal vary of 0.5x-1.0x, the liquidity appears to be there.
There’s a transparent want for warning right here, and I’ll stay cautious till I see these earnings begin to rise once more. However I do suppose dividend buyers ought to think about Victrex as a 2026 dividend inventory candidate.
Coated by earnings
The MONY Group (LSE: MONY) share worth has additionally fallen over the previous 5 years, this time without work by 31%. Surprisingly, that’s after shareholders have loved rising earnings and dividends previously three years, with vivid forecasts forward.
We see a decrease forecast dividend yield than at Victrex, although nonetheless enticing at 6.8%. And this time, it appears prefer it needs to be strongly lined by earnings. For the primary six months of the yr, the finance companies agency declared an interim dividend of three.3p per share. Adjusted EPS of 9.3p got here in at 2.8 instances that. And internet debt was down a really helpful 27%, to simply £18.4m.
The corporate’s monetary comparability choices do face competitors. Additionally they face altering shopper patterns and preferences. What number of, having used comparability companies to choose what they need, will merely stick with that within the years forward?
It’s a danger, however it doesn’t deter forecasters, who see Mony’s earnings persevering with the pattern of the previous few years. Between 2024 and 2027, there’s an EPS improve of 25% on the playing cards… with 14% dividend development predicted too.
Mony ticks various an important bins for me for a long-term dividend inventory candidate.
