With a 9.5%yield, could this FTSE 250 action be a dividend gold mine?

The largest dividend payers in the country, by force of its size, are Ftse 100 companies. But that does not mean that Ftse 250 Companies do not spend some cash on paying shareholders.

Some FTSE 250 shares have attractive dividend yields. For example, one that has a well -known and well established business currently produces 9.5%.

Invest £ 1,000 today and aggravate it at 9.5% per year for a decade, it would have already grown at £ 2,478.

That type of the Gold of Dividend Mine (potential) is tempting for me, but is this the right part to buy to try to achieve it?

Large and tested business

The FTSE 250 company is the financial services company Abrdn (LSE: ABNN).

Its brand can have a silly spelling, but it is well established and well known. The firm also has digital platform II (apparently does not like to mix vowels and consonants). So this is a big business with a large customer base and a deep experience in financial markets.

How big?

It ended last year with more than half billion pounds of assets under administration and administration.

That was higher than the level at the end of September. I see that he is encouraging, since investors get more money than they said has sometimes been a challenge for Abrdn in recent years. I think it is still a risk.

Even so, although its commercial performance has been inconsistent, Abrdn is what he would consider as a proven business. He obtained a gain of £ 171 million in the first half of last year.

The dividend is tempting, but will it last?

But Abrdn faces a variety of challenges, from strong competition to the potential that its Saps cost reduction program the morale of the staff.

The dividend is attractive. But it has remained stable since 2020, when it was cut by a third. The past performance is not necessarily a guide of what will happen in the future. In any case, even if the dividend remains at the same level, the current performance would be attractive to me.

My concern is the risk of another cut at some point. The company won only £ 12 million in its most recent results throughout the year. That follows a loss of more than half billion pounds the previous year.

To hold your dividend, Abrdn needs to discard enough spare cash to pay it. His profit performance in recent years does not fill me with confidence, he will do so regularly to sleep comfortably as a investor.

Clearly, the company is trying to remodel.

It has been reducing costs, while using its digital platforms to try to attract a broader range of potential customers than its traditional customer base. That strategy could work, in which case the profits can grow.

But the business has long been an unpredictable artist. Some of the reasons are outside their control. For example, a weak economy could lead investors to put less money in the markets, harming the profits of investment administrators.

The risks here do not feel comfortably with me, so for now I will not buy ABRDN shares.