Growth, value and dividends! 2 FTSE 250 stocks to consider in October

Combination investing FTSE250 growth, value and dividend shares can be a powerful strategy for achieving strong and stable returns.

Each type of stock offers unique benefits, and combining them in a portfolio can help investors achieve a balance between capital growth and steady income, while reducing risk.

Growth companies can enjoy spectacular increases in share prices as earnings increase. Dividend stocks provide an income stream that can be reinvested to provide significant compound gains. Value stocks provide a margin of safety that can limit price declines during market downturns.

With all this in mind, here are two of the top FTSE 250 stocks that I think are worth a closer look.

Stock growth and value

Cybersecurity companies have significant growth opportunities as our lives become increasingly digitized and the number of cyberattacks increases. This is certainly the case NCK Group (LSE:NCC), whose earnings are expected to grow by 120% this financial year and by 25% and 21% respectively in the next two financial years.

NCC provides two main services. The Cyber ​​Security unit helps companies detect online threats, simulate attacks and perform risk assessments. Its Escode division offers software escrow and verification services that protect mission-critical data and software.

NCC’s share price is rising strongly as market conditions improve. Last month, it saw better-than-expected 4% revenue growth in the four months to September. However, investors should keep in mind a possible reversal of trends if the US economy falls into recession.

That said, the cheapness of the company’s shares could help limit any downside moves. It is trading at a price-to-earnings growth (PEG) ratio of 0.2. Any reading below 1 means the stock is undervalued.

Dividend stocks

With a forward dividend yield of 10.7%, NextIncome from solar energy(LSE:NESF) is currently one of the biggest potential contributors on the FTSE 250. In fact, its performance is greater than three times greater than the index average.

Such high rates of return may be a warning signal for investors. They can indicate an unsustainable dividend, with companies often paying out more than profits. The huge returns can also be the result of a falling share price, which reflects increasing pressure on the company.

None of this applies to NextEnergy, however. It has a long history of paying large and growing dividends, as the chart below shows. Indeed, since its stock market debut in 2014, it has paid out a whopping £345 million in dividends.

The energy producer has two main attractions for me. The defensive nature of its business supports strong cash flows, and therefore solid dividends, at all points in the economic cycle. It also has the potential to deliver great long-term returns as demand for clean energy continues to grow.

Keeping interest rates at current highs could impact short-term returns. But overall, I think it’s a great income investment in October.