One of the best sort of passive revenue is definitely the type that grows over time. When utilized to the inventory market, this occurs when firms handle to carry their dividends 12 months after 12 months. Right now, I’m taking a look at two examples from the FTSE 250 which have managed to do exactly that.

Tasty half-year numbers

Mid-cap meat provider Cranswick (LSE: CWK) may not be a glamourous enterprise. Nevertheless it’s been a brilliantly-reliable supply of rising dividends for shareholders. In FY19, the whole payout got here to 55.9p per share. In FY24, it was 90p per share.

Based mostly on the most recent set of interim outcomes, I believe this type appears to be like set to proceed.

Income rose 6.1% to £1.33bn within the six months to twenty-eight September. At £95.8m, adjusted pre-tax revenue was a bit over 17% larger.

A part of the rationale Cranswick retains posting larger numbers (and elevating dividends) is down to its development technique. On account of ongoing funding, the agency boasts the biggest pig farming enterprise within the UK. It additionally continues to broaden its poultry division which now accounts for 19.5% of complete gross sales. The latest foray into pet meals seems to be going effectively too.

Why the autumn?

Regardless of at this time’s encouraging replace, the shares have fallen virtually 5% in buying and selling.

Not less than a few of this may be because of administration stating that the outlook for the remainder of the monetary 12 months (ending 29 March) was according to market expectations. On condition that the shares have been already buying and selling at 19 occasions forecast earnings, traders have been probably hoping for an improve to steering.

Nonetheless, there’s nothing in at this time’s assertion that provides me actual trigger for concern (regardless that the rising recognition of plant-based sources of protein is one potential threat I’m conserving my eye on). Demand from customers seems strong and the agency’s Christmas order e book is “robust“.

Tellingly, administration additionally elected to lift the interim payout by 10.1% to 25p. That screams confidence to me.

At simply 2% or so, Cranswick’s forecast dividend yield may be common however that is arguably balanced out by the £2.8bn cap’s wonderful long-term efficiency.

If the shares proceed shedding worth within the weeks forward, I’ll effectively tuck in.

Again on monitor

One other mid-cap with a positive document of rising dividends is self-storage large Safestore (LSE: SAFE). As with Cranswick, I believe this appears to be like set to proceed.

Income efficiency “improved” in This autumn, permitting administration to declare that the corporate had “returned to growth overall” in FY24. That is regardless of demand from small enterprise prospects being extra subdued than in 2023.

Wobbly financial backdrop apart, buying and selling has additionally been “steady” throughout the Channel in France.

Robust occasions

As issues stand, the shares yield 4%. That’s greater than I’d get from simply shopping for a bog-standard fund that tracks the return of the FTSE 250. I additionally like that Safestore has 26 extra shops in its growth pipeline because it slowly expands into Continental Europe.

That mentioned, I’m acutely aware that the true property sector could possibly be set for extra short-term ache if inflation continues to bounce, prompting the Financial institution of England to pause rates of interest cuts. Certainly, this goes some technique to explaining the near-13% drop within the share price within the final month.

Because of this, I’m conserving Safestore on my watchlist for now.