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When screening for high-yield UK dividend stocks, I often find the FTSE 250 brings up many of the best options. To narrow down the results, I also filter for certain valuation and growth metrics like price-to-earnings (P/E) and P/E-to-growth (PEG) ratios.
Here are three of the most promising options I’ve uncovered this month.
| FTSE 250 stock | Dividend yield | Market cap | P/E ratio | PEG ratio |
|---|---|---|---|---|
| Tritax Big Box (LSE: BBOX) | 5.32% | £3.59bn | 7.31 | 0.02 |
| TP ICAP (LSE: TCAP) | 6.24% | £1.91bn | 12.25 | 0.1 |
| OSB Group (LSE: OSB) | 6.99% | £1.75bn | 6.32 | 0.38 |
Investing in industrial real estate
Tritax Big Box REIT specialises in large-scale logistics and warehousing assets, primarily rented to blue-chip tenants such as Amazon, Tesco, and Ocado. Its focus on ‘big box’ logistics properties provides long-term rental income linked to the rise of e-commerce and supply chain modernisation.
The company’s P/E ratio of 7.31 indicates a low valuation, particularly when paired with a remarkably low PEG ratio of 0.02, suggesting significant earnings growth at a discounted price. Despite macroeconomic uncertainty and pressures on the commercial property sector, it has managed to maintain a resilient 5.32% dividend yield — well above the FTSE 250 average.
Its tenant base is stable, and most leases include inflation-linked rent increases, which offer a hedge against rising costs. Although higher interest rates may impact property valuations, Tritax’s consistent cash flow and strategic asset base make it worth considering as a reliable income generator.
The specialist financial services provider
TP ICAP is a leading interdealer broker, connecting buyers and sellers in global financial, energy, and commodities markets. The company plays a vital role in market infrastructure, benefiting from volatility and trading volumes — factors often elevated during economic uncertainty.
Its 6.24% dividend yield is particularly attractive, supported by strong cash generation and a robust balance sheet. The P/E ratio of 12.9 suggests fair valuation, while a low PEG ratio of 0.1 highlights potential for undervalued growth. The company has made strategic moves to diversify through its data and analytics arm, Parameta Solutions, offering higher-margin revenue streams.
There are risks, such as regulatory pressures and competition from electronic trading platforms, but TP ICAP’s broad market exposure and operational resilience make it a potentially rewarding income stock to consider for the medium to long term.
The rapid rise of buy-to-let
OSB Group is a specialist mortgage lender, operating primarily in the buy-to-let and residential market segments. It offers tailored products often underserved by high street banks, giving it a niche competitive edge.
With a dividend yield nearing 7%, OSB stands out as one of the most generous income providers on the FTSE 250. Its P/E ratio of 6.07 reflects an exceptionally low valuation, while a PEG ratio of 0.71 suggests that the stock could be significantly undervalued relative to its growth prospects.
Despite challenges in the housing market and ongoing pressure from higher interest rates, OSB continues to report strong loan book performance and prudent risk management. Its conservative lending criteria and solid capital position underpin the sustainability of its dividend, making it a compelling stock to consider for income-focused investors willing to ride out cyclical challenges.
