Can this FTSE 250 share be a divide gold mine with a profitability of 9.5%?

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The largest dividend payers in the country, according to their size, are FTSE 100 companies. But that doesn’t mean FTSE 250 Companies do not spend a lot of cash on paying dividends to shareholders.

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Some FTSE 250 shares have attractive dividend profitability. For example, which currently has a well -known and well -established company, now gives 9.5%.

By investing today 1000 pounds and combining it in 9.5% a year for a decade, it would raise to 2478 pounds.

This kind (potential) dividend of the gold mine is tempting for me – but is it the right share to buy it to achieve this?

Big, proven business

FTSE 250 is a financial company Abrdn (LSE: ABNN).

Her brand may have a stupid spelling, but she is well established and well known. The company is also the owner of digital platform II (it seems that Abdn does not like mixing vowels and consonants). So it is a great company with a enormous customer base and deep experience of financial markets.

How huge?

Last year, this ended with more than half a trillion of pounds of managed assets and administration.

It was higher than the level at the end of September. I see it as encouraging, because investors pulling more money than they put in was a challenge for Abdn in recent years. I think this is still a risk.

Despite this, although his commercial results have long been inconsistent, Abdn is what I would consider a proven company. In the first half of last year it achieved a profit of 171 million pounds.

The dividend is tempting, but will it last?

But Abdn is in the face of a number of challenges, from mighty competition to the potential that his program of reduction of costs is embedded by morale of staff.

The dividend is attractive. But since 2020 it has been persisted since 2020, when it was cut by the third. Earlier results are not necessarily a guide after 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.

I am worried at some point the risk of another cut. The company earned only 12 million pounds in the latest year -round results. It is after losses of over half a billion pounds last year.

To keep the dividend, Abdn must drop enough free cash to pay for it. The results of earnings in the last few years do not fill me with confidence that he will do it with sufficient regularity to sleep comfortably as an investor.

Apparently, the company is trying to transform.

He puts costs, at the same time using his digital platforms to get a wider range of potential customers than a time-honored customer base. This strategy may work in which the profits may raise.

But business has long been an unpredictable contractor. Some of the reasons that are outside his control. For example, a needy economy can lead to the introduction of investors less money to markets, hurting the profits of investment managers.

The risk here is not comfortable with me, so for now I will not buy ABRDN shares.

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