The FTSE 250 is a good place to go looking for prime dividend shares. Many prime shares have the type of excessive yields that may supercharge an investor’s passive earnings.

Take the next dividend shares, as an illustration:

You’ll see that the yield on these shares smashes the common for FTSE 250 shares. You’ll additionally discover that every three of those shares is tipped to lift their annual dividend this 12 months.

That is necessary to me as a long-term investor. I’m not solely trying to find massive dividend yields right this moment. I would like firms that constantly develop their dividends 12 months after 12 months.

A rising dividend mitigates the impression of inflation, whereas additionally giving me a rising passive earnings stream. When reinvested, this earnings might help me compound wealth over time.

Decide #1

Property funding trusts like Custodian Property Earnings is usually a nice supply of dividend earnings from 12 months to 12 months.

Actual property funding trusts (REITs) are designed to offer a good money stream for traders. In return for tax benefits, they pay a minimal of 90% of annual rental earnings to their shareholders.

This doesn’t assure a dividend, in fact. Custodian’s publicity to cyclical sectors like retail, places of work, and leisure means lease collections and/or occupancy could disappoint throughout downturns, hitting payouts within the course of.

Nevertheless, the agency’s giant checklist of tenants helps to cut back this danger. It has 338 tenancies, and these have a weighted common unexpired lease time period (WAULT) of slightly below 5 years, offering stable visibility.

At 77p, the corporate’s share price is buying and selling at 21% beneath its estimated web asset worth (NAV) per share of 97.5p. I believe Custodian’s a prime inventory for take into account for traders in search of a low-cost passive earnings.

Please word that tax therapy depends upon the person circumstances of every shopper and could also be topic to alter in future. The content material on this article is supplied for data functions solely. It’s not supposed to be, neither does it represent, any type of tax recommendation.

Decide #2

Business broadcasters like ITV face the continued menace of weak promoting gross sales in 2025. Poor financial situations within the UK may see firms maintain the faucets turned down on their advertising and marketing actions.

But I determine that is baked into the corporate’s low price-to-earnings (P/E) ratio of seven.9 occasions. Mixed with that massive dividend yield, I believe it’s price severe consideration.

As a long-term investor, I’m enthusiastic about ITV shares for 2 foremost causes. With strike motion within the US over, the outlook for its ITV Studios manufacturing arm is way improved. It may count on revenues right here to rise steadily as broadcasters and streaming firms like Netflix search to amass new content material.

I’m additionally impressed by the continued progress of its personal ITVX streaming service. Complete viewing hours right here leapt 14% between January and December regardless of intense competitors from different streaming companies. I count on this robust development to proceed as ITV invests closely in know-how and programming.

With a net-debt-to-adjusted EBITDA ratio of beneath one, ITV has scope to proceed investing for development whereas additionally paying giant dividends. I believe it’s a prime passive earnings share to take a look at.