3 FTSE 250 shares I’d buy now for passive income

Over the years I have found that the FTSE 250 is a great place to find passive income. Today, I’ll look at three stocks from the mid-cap index that I see as good picks for reliable dividend growth.

15 years without a crop

My first choice, a utility retailer Telecommunications Plus (LSE: TEP), has not cut its dividend since 2007. In that time, the payout has risen by an average of 13% per year to the current level of 64p per share.

The business owns Utility Warehouse, which sells home energy, broadband and mobile services through an army of self-employed agents.

Telecom Plus has a long-term energy supply deal with Eon which made it the cheapest energy supplier in the UK last year. This provided a huge boost to the business – pre-tax profits rose 46% in the six months to 30 September.

I don’t expect this incredible pace of continued growth, but the stock forecast yield of 4% seems safe to me. The management is very experienced, led by chairman and shareholder Charles Wigoder.

My main concern is that UW’s unusual sales model could run into trouble. However, the group has been successfully trading this way for almost 30 years. This gave me confidence that a sudden collapse was impossible.

I see Telecom Plus as a good choice for income investors.

IT pays reliable dividends

The next choice is an IT specialist Computing center (LSE: CCC). Like Telecom Plus, this business has long-term management and founding shareholders.

Computacenter is one of the UK’s largest IT retailers. The group provides hardware, software and IT services to its customers, which are mostly corporate and public sector organisations. The business also operates in France, Germany and the US.

Sales got a big boost during the pandemic, due to the demand to work from home. Things have calmed down since then, but management says it’s still there “as bullish as ever” about long-term opportunities for business.

I think there is a risk that a recession could lead to a bad year. But Computacenter’s 3% yield seems very safe to me. It should be noted that this dividend has increased by an average of 16% per year since 2007 – a growth rate that beats inflation.

A reliable, daily purchase

My last choice was a soft drink company England (LSE: BVIC), which includes UK brands Robinsons, Tango and Rockstar.

Britvic’s appeal for me lies in its defensiveness. Popular brands that are affordable, buy every day. Some buyers may trade down to own-brand supermarkets, but guess most customers will continue to buy regular favorite drinks.

Analysts expect Britvic’s profits to be flat this year, before growing again in 2023/24. I don’t see much to worry about in terms of performance.

My slight concern is that the group’s debt level is a bit higher than I would like. However, this situation has been successful for several years. Current debt is expected to decrease due to ease of spending.

Britvic shares offer a forecasted yield of 3.7%, with a record of continuous payments stretching back to 2006. I see shares as a low-risk option for income.