This FTSE 250 stock just jumped 20%. I’m seeing a growth plus dividend buy here

first_img FTSE 250 stocks typically, on average, offer better growth than the FTSE 100. But over the past five years, the two indexes have been running pretty much neck-and-neck. In the Covid-19 crash, the mid-cap index initially dipped further. But it’s come back, and both have performed similarly this year.If you’re looking for potential recovery stocks, I reckon the FTSE 250 is home to many candidates. One of them is Provident Financial (LSE: PFG), whose share price spiked 20% on Wednesday morning. Provident offers loans to sub-prime borrowers, and is behind such brands as Vanquis Bank and Moneybarn.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In recent years, that business has been a horrible one for investors. Provident Financial shares plummeted during the 2020 stock market crash, but that’s been the least of its problems. Look back a bit, and the pandemic fall looks tiny compared to 2017’s share price collapse. Over five years, Provident shareholders have suffered an 89% loss.But Provident’s 2020 share price performance took a turn for the better on Wednesday. The shares jumped 20%, as mentioned, during morning trading in response to first-half results. That leaves the Provident share price down 49% year-to-date, against a FTSE 250 fall of 20%. Not a blazing success, but it’s been worse.Not as bad as fearedThings aren’t rosy yet, but they’re not as bad as expected, and I think we’re looking at the start of a FTSE 250 recovery. The company reported an adjusted pre-tax loss of £32.6m, compared to a profit of £80.4m for the same period last year. Prior to these figures, analysts were predicting a full-year loss of around £62m. So it all depends on how the second half goes. On that, chief executive Malcolm Le May said: “I am cautiously optimistic about the outlook for 2020 and beyond.”The Vanquis Bank and Moneybarn brands both saw a profitable half, which is better than I’d expected. So I can see the full year turning out significantly better than current forecasts. To echo the firm’s improving sentiment, Mr Le May said that “financial and operational performance were better than expected, and therefore we have decided to repay all furlough support to the government.”Dividends back soon?Before its fall from grace, Provident Financial was among the FTSE 250’s most attractive dividend providers. Even the 2019 dividend (greatly reduced from earlier years) would yield 3.8% on the current share price. There’s no dividend coming back just yet, as the company is instead pursuing “the continued aim of preserving capital and supporting business stability.”But we heard that “it remains the group’s intention to resume dividend payments to shareholders as soon as operational and financial conditions normalise.”FTSE 250 outperformancePerhaps ironically, the effect of the pandemic on low-income families is offering something positive for Provident. Mr Le May pointed out that “our market will grow due to the pandemic.”I think Provident Financial could be one of the FTSE 250’s better performers over the next few years. And I’m talking of both share price growth and dividends. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. Alan Oscroft | Wednesday, 26th August, 2020 | More on: PFG I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this.center_img Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares This FTSE 250 stock just jumped 20%. I’m seeing a growth plus dividend buy here Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Alan Oscroftlast_img read more