With a spare £1,000, I’d boost my passive income with these FTSE 250 dividend stocks

With a spare £1,000 I would increase my passive income with these FTSE 250 dividend stocks

I think there are some great opportunities in the FTSE 250 shares at the moment. There are two in particular that stand out to me as stocks to buy for long term passive income.Both are in the real estate sector, where share prices have fallen faster than the broader market. It feels like an overreaction in some cases, so I want to take advantage of that.

Property inventory

In the real estate sector, share prices are down around 8% since the start of the year. This is significantly more than the FTSE 100 (down 1%) and the FTSE 250 (down 2%).The biggest reason is the rise in interest rates from 3.5% at the beginning of the year to 5.25% today. This weighed on the demand side of the real estate market by making mortgages more expensive.

Despite falling demand, supply in the property sector (as measured by the UK construction PMI) is relatively stable. As a result, prices fell.This is why share prices in the real estate sector are falling. But I think the declines may be excessive in some cases, particularly for the two FTSE 250 stocks.

Primary Health Properties

First on my list is Primary Health Properties (LSE:PHP), which leases GP surgeries and health centers in the UK and Ireland. Shares are down 17% year-to-date.With 99.6% of properties occupied and 98% of the planned rent collected, they are doing well. And with 89% of rent coming from the UK government, the risk of tenant bankruptcy seems low.The bigger risk, in my opinion, is the company's balance sheet. The business has a total debt of £1.3bn and pays £40m in interest, a large part of its annual rental income of £75m.

Action for a real estate investment trust (REIT), that's a lot. But with 97% of the company's debt fixed or secured for the next seven years, I think there's still some way to go before any real problems emerge.As a result, the 7% dividend looks like an attractive source of passive income. If I had £1,000 left over to invest, I would put £500 into primary health properties to take out an extra £35 each year.

Warehouse REIT

Another FTSE 250 REIT on my radar is Warehouse REIT (LSE:WHR) . The company owns and leases industrial distribution facilities, and the stock has fallen 22% since early January.Approximately 96% of the company's buildings are occupied and 99% of projected rent was collected last year. In my opinion, the biggest risk lies in its rental base.Warehouse REIT's largest tenant is Amazon. I am afraid that it will not be easy to negotiate a rent increase with this company, especially when there is a lot of warehouse space on the market.

However, this risk is offset by the fact that Warehouse REIT owns properties in good locations. This provides tenants with some difficulties when it comes to switching to another device.Warehouse REIT shares also come with a 7% dividend. At today's prices I'd like to take £500 and buy shares to add to my passive income.

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When investment expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter, which has been running for almost a decade, has provided thousands of paying members with recommendations on the best stocks from the UK and US markets.And right now, Mark thinks there are 6 exceptional stocks that investors should consider. Want to see if the primary health attributes made the list?

In today's dynamic financial environment, finding ways to increase passive income has become a top priority for investors. The FTSE 250, a renowned index of mid-cap shares on the London Stock Exchange, presents a promising opportunity to achieve this. With a £1,000 reserve to hand, savvy investors can tap into the potential of dividend-paying FTSE 250 stocks to boost their passive income. In this article, we will explore how to optimize your investment strategy by focusing on high yielding stocks and relevant to guide you through the process.

FTSE 250 Dividend Shares: A Lucrative Path to Passive Income

The FTSE 250 index is a robust collection of mid-cap companies that often offer a balance between growth potential and stability. One of the most compelling attributes of these stocks is their consistent dividend distribution. Investing in high-yielding dividend stocks provides investors with a reliable stream of income, making them an ideal choice for those looking to passively grow their wealth.

Choosing the right dividend stocks: key considerations

Dividend Yield: Dividend yield is a critical metric for evaluating the potential income from a stock investment. It is calculated by dividing the annual dividend by the current share price. Look for stocks with competitive dividend yields to ensure a significant income stream.

Dividend History: Examining the dividend history offers insight into its consistency and sustainability. Favor companies with a track record of maintaining or increasing dividends over time. Payout Ratio: The dividend payout ratio measures the proportion of a company's profits allocated to dividends. A lower ratio indicates that the company is retaining enough earnings for growth and financial stability, which bodes well for consistent dividends.

Sector Analysis: Diversification across sectors is essential to mitigate risks. Keywords like “dividend stocks across sectors” are important to target because they highlight the benefits of a well-rounded portfolio.

The best FTSE 250 dividend stocks to consider

Legal & General Group Plc (LGEN): A stalwart in the insurance sector, Legal & General offers a competitive dividend yield and solid dividend history. The keyword "LGEN dividend history" may attract readers looking for evidence of the company's reliability.

 SSE Plc (SSE): As a major player in the energy sector, SSE boasts a strong dividend yield and commitment to renewable energy. The mention of "SSE renewable energy investments" may engage environmentally conscious investors.

 Direct Line Insurance Group Plc (DLG): This insurance company's consistent dividends and prudent financial management make it an attractive choice. Use keywords like "DLG dividend growth" to highlight its potential for income appreciation.

The Power of Reinvestment: Compounding Returns

Dividend reinvestment is a powerful strategy to multiply your returns over time. By buying additional stocks with your dividends, you accelerate the growth of your investment and exponentially increase your passive income potential. Keywords such as "dividend reinvestment strategy" can guide the reader to understand this concept.

With £1,000, investors can strategically increase their passive income by immersing themselves in the world of FTSE 250 dividend stocks. By focusing on high-yielding options, dividend history, sector diversification and reinvestment power, individuals can lay the foundations for a reliable and growing income stream. Through the lens of keywords related to dividend history, growth and industry diversity, investors can confidently navigate the FTSE 250 landscape and optimize their passive income journey. Remember, as with any investment, thorough research and consultation with financial advisors is essential to making informed decisions.