Whereas it’s the FTSE 100 that garners most traders’ consideration, I reckon it is also a sensible concept to buy within the FTSE 250 to construct a second earnings.

In spite of everything, there are 27 shares on the index that supply a dividend yield of seven% or extra. The Footsie, then again, has simply seven.

That mentioned, I’m not simply on the lookout for the best yield. Whereas which may be an attractive funding technique, it’s not at all times probably the most sustainable. Shareholders of telecommunications large Vodafone, which is ready to chop its payout in half subsequent 12 months, know that every one too effectively.

That’s why I just like the look of those two FTSE 250 constituents. They provide enticing yields. However I’m additionally assured that they’ve the potential to maintain rising within the years forward. I personal each shares but when I had the spare money I’d fortunately add to my place in them at this time.

ITV

My first choose is ITV (LSE: ITV). It’s an organization that wants no introduction. Right now, it yields a formidable 6.2%. That’s above the FTSE 250 common, which is 3.3%. That mentioned, I’m extra drawn in by administration’s ambitions to develop its payout over the medium time period.

The inventory had been within the doldrums over the previous couple of years. But it surely has slowly been making a restoration. Within the final 12 months, it has climbed a formidable 20.4% in comparison with the FTSE 250’s 13.2% rise. It has posted a big chunk of its turnaround this 12 months, rising 28.1%.

Regardless of its rise, I reckon the inventory seems like good worth for cash. It trades on 15.6 occasions earnings. That trumps the FTSE 250 common, which is round 12. Even so, I’m comfy paying a slight premium for a enterprise of ITV’s high quality.

Wanting ahead, the agency will face challenges. Streaming suppliers have taken the shine off of conventional TV as they proceed to rise in recognition.

However ITV is conscious of this and adapting because of this. It’s on observe to achieve its 2026 key targets, together with £750m in income for its digital ops. I reckon now may very well be a sensible time to consider this one.

Video games Workshop

I’m additionally a large fan of Video games Workshop (LSE: GAW). It’s been a staple of my portfolio for a couple of years now.

The inventory yields 3.9%. That’s removed from breathtaking. However Video games Workshop solely makes use of “truly surplus cash” to pay shareholders and has an extremely sturdy steadiness sheet with zero debt. It’s for causes like that its dividend fee has steadily elevated over the past decade.

I’m additionally bullish on the inventory attributable to its main trade place. It’s the largest participant within the miniature wargames trade by some stretch. That offers it a serious edge over any rivals.

Nevertheless, I feel we may see competitors ramp up within the coming years and that can present a menace to the agency. Its share price has additionally skilled main swings in years passed by, so volatility throughout powerful buying and selling situations may doubtlessly be anticipated.

However even throughout powerful occasions, the enterprise appears to show its resilience. In June it introduced that it expects core income to return in “not less than” £490m. That’s a ten% soar from final 12 months when income totalled £445m.