FTSE 250 shares aren’t only for progress. Some are absolute revenue machines. I’ve simply landed on two that supply bumper double-digit yields.

If an income-hungry investor had £2,000 to tuck away, ought to they think about splitting it between these two?

Foresight Photo voltaic Fund shines

First up is Foresight Photo voltaic Fund (LSE: FSFL), an funding belief that presently affords a red-hot trailing yield of simply over 10.3%. 

The corporate invests in photo voltaic farms and battery storage, with 58 websites unfold throughout the UK, Spain and Australia. 

Regardless of a dark 2024 for sunshine, the UK’s worst since 2013, Foresight nonetheless hit its 8p dividend goal. And that’s coated 1.4 instances by earnings.

Administration has pencilled in an 8.1p dividend for 2025 and expects that to be coated 1.3 instances. That provides me some confidence the yield might maintain up, though as ever, these items are by no means assured. 

The board is actively hedging electrical energy costs, locking in 88% of 2025 revenues and 69% for 2026. After all, this doesn’t take away all threat. If electrical energy costs plunge or the group’s deliberate Australian asset sale is delayed additional, that would squeeze money stream. 

With internet asset worth slipping to £634m from £698m the yr earlier than, there’s strain to ship on disposals and maintain investor confidence excessive. 

Nonetheless, I believe income-focused traders may think about this one. Particularly with these hedges in place and dividends forecast to maintain rising. They need to additionally keep in mind that renewable power could be a risky sector, there’s a little bit of a backlash in opposition to internet zero, and falling fossil gasoline costs might up the competitors. The shares are down 15% over one yr and 25% over 5, wiping out a lot of the revenue.

Foresight Photo voltaic Fund seems to be low cost in consequence, buying and selling at a whopping low cost of just about 30% to underlying internet asset worth. As ever with reductions, there’s no assure this can slender.

TwentyFour Revenue Fund

The TwentyFour Revenue Fund (LSE: TFIF) is a really completely different beast. This Guernsey-based funding belief focuses on European asset-backed securities, swimming pools of mortgage and mortgage repayments bundled collectively and bought as investments. Which may sound advanced, however the enchantment is obvious: a fats dividend.

The fund simply paid a document 11.07p over the previous yr, giving it a ten.1% yield on the present share price. It’s been a robust performer in a distinct segment a part of the bond market, with complete returns final yr of 16.9% together with dividends.

Crucially, this fund operates a full payout mannequin: all revenue will get handed on to shareholders. However that additionally means there’s no buffer if issues go unsuitable. 

If defaults rise or liquidity dries up, the dividend may come below quick strain. Nonetheless, with £840m in belongings and solely £26m in liabilities, the steadiness sheet seems to be reassuring. This dividend may endure too, however as ever, there aren’t any ensures.

Traders may think about shopping for this one for revenue, though I’d wish to maintain a detailed eye on the financial outlook. European asset-backed securities might be profitable, however they’re not proof against volatility. There’s no low cost right here, the belief trades at a slender 0.36% premium to underlying internet asset worth. I truly discover that reassuring.

Each funds sit on eye-catching yields and have delivered revenue in robust circumstances. I believe they’re price contemplating however just for skilled traders who have already got a diversified portfolio and are searching for one thing somewhat completely different with luggage of passive revenue.