Make your money go further for just 25p per day

PREMIUM

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Berkeley Group Holdings (BKG)  · Electrocomponents (ECM)  · Hikma (HIK)  · Ibstock PLC (IBST)  · Micro Focus International (MCRO)  · Mondi (MNDI)  · Moneysupermarket.com (MONY)  · Tate & Lyle (TATE)  · Telecom Plus (TEP)  · WH Smith (SMWH) 

Dividends FTSE 250 UK

Pile for £50 notes

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip space – historically a reliable hunting ground for generous income. But the FTSE 100 has become a minefield for dividend investors where good quality comes with a high valuation risk and good value comes with the risk of complete failure. So, with the large-cap space proving problematic for income hunters, we’ve taken a look at the UK’s mid-cap market to find some reliable dividend payers with a decent yield.


Mid-caps are often described as the overlooked middle child of the financial markets. That has certainly been true in the UK in the last few years as investors have written off the domestic FTSE 250 index amid fears of Brexit-related disruptions. In general, UK mid-caps have underperformed both their larger and smaller peers.

But assuming all UK-focused companies will be battered in the next few years as Brexit mayhem continues is just as foolish as assuming that all international-focused companies will grow nicely. True, there are some British mid-caps which are highly exposed to the current political drama and expected end of the economic cycle. There are also plenty of middle-sized companies which are fighting sector specific issues (retailers and housebuilders, for example), while some terrible mid-caps have failed to invest enough in future growth.

But mid-caps can be a sweet spot for investment – small enough to grow, but big enough to avoid risk. When that comes with a well-covered, high…

Continue reading this article…

Enjoy FREE access to the top news and insights from the investment world and our introductory finance guides.
  • Informative guides
  • Unique podcasts
  • Financial news and political insight
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
  • In depth coverage of many of the world’s great companies
  • Breaking news on potential upcoming disasters
  • Unique insights from our top research team

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

SUBSCRIBE NOW

More on Berkeley Group Holdings

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


UK Housebuilders: bargain or value trap?

15/01/2019 · Investors Clinic
The longevity of the Help-to-Buy scheme and the potential impacts of Brexit have weighed on sentiment…

Bargain UK housebuilders, but which should you go for?

28/12/2018 · Company research

More on Electrocomponents

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


More on Hikma

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


FTSE shuffle: who’s up and down in June?

31/05/2019 · News & Insights

In the first week of June, the FTSE 100 and 250 will be shuffled to reflect…


Batten down the hatches – it’s time to get defensive

12/02/2019 · Companies Analysed
Global economic figures are causing distress, but that doesn’t mean it’s time to abandon the stock…

Hikma: Delivering inflation-proof income

05/02/2019 · Portfolio
Income investors need growth as well as yield. This FTSE 100 dividend stock promises to deliver…

More on Ibstock PLC

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


Michelmersh is an ideal stock: yield, growth and IHT qualifying

26/04/2019 · Investors Clinic

Established in 1997, Michelmersh Brick Holdings (LON:MBH) comprises six of the UK’s premium brands of…


More on Micro Focus International

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


Micro Focus: Turnaround perks for dividend investors

30/01/2019 · Portfolio
This FTSE 100 software specialist boasts a track record of high margins and strong cash generation.…

More on Mondi

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


Packaging profits deliver strong dividend growth at Mondi

12/03/2019 · Portfolio
Packaging group Mondi is a fairly recent arrival in the FTSE 100, but it has a…

More on Moneysupermarket.com

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


Portfolio Flash News: May

20/05/2019 · Portfolio Flash News

It’s not always easy to keep track of your investments. Sometimes big news gets hidden in…


Moneysupermarket: growth, quality and a 4% dividend yield

07/05/2019 · Portfolio

In the UK, price comparison websites are used by an estimated 11m people. Standing out in the…


Portfolio Flash News: April

30/04/2019 · Portfolio Flash News

It’s not always easy to keep track of your investments. Sometimes big news gets hidden in…


More on Tate & Lyle

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


Tate & Lyle should be sweet choice for income investors

19/03/2019 · Portfolio
Changing tastes doesn't dim the income appeal of Tate & Lyle. This heritage firm has carved…

More on Telecom Plus

Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


More on WH Smith

WH Smith: customers complain but shareholders rejoice

05/06/2019 · Investors Clinic

WH Smith Group offers impeccable investment credentials, consistently generating high returns on equity and plenty of…


Dividend dogs vs diamonds: Part 3 – marvellous mid-caps

05/06/2019 · Investors Clinic

In the first two instalments of our mini-series on dividends, we focused on the UK’s blue-chip…


Stocks for your stocking

12/12/2018 · Investors Clinic
2018 has ended on a particularly gloomy note, but the recent turbulence in the US tech…

WH Smith (SMWH) – phenomenal performance, how do they do it?

15/10/2015 · News & Insights
With its origins going back to the 1790s this business continues to deliver materially to shareholders.…

More Investors Clinic

Investors in car rental giant Avis Budget should drive carefully

24/06/2019 · Avis Budget

Bursting Blue Prism’s bubble: sales growth is not sustainable

19/06/2019 · Blue Prism Group PLC

Impact investing: playing the long game

19/06/2019