Two FTSE 250 ISA Shares With Yields Above 7% Worth Watching

Two FTSE 250 ISA shares offering forecast dividend yields of 8.4% and 7.9% have caught the attention of income-focused investors, even as both carry distinct risks that deserve careful examination before any capital is committed.

ME Group International: a profit warning and what followed

ME Group International (LSE: MEGP) operates photo booths, laundry machines, vending equipment and other automated retail installations across Europe. The shares fell 27% on 1 June 2026 after the company’s trading update cut full-year profit before tax guidance to between £69m and £74m, citing weakness ‘particularly in the French photobooth and laundry businesses.’ Management attributed that weakness to ‘a shift in consumer spending patterns driven by lower consumer confidence due to the ongoing conflict in the Middle East.’

The June update also disclosed that H1 2026 revenue was up 2%, while equipment sales fell 14%. That equipment decline matters because it feeds future installed-base growth. A softening there adds another layer to the bearish case.

Investors Chronicle noted that the June announcement was in fact a second profit warning, and that governance and succession concerns had already been circulating before the share price fell. Those concerns add context to the selling pressure beyond the headline numbers alone.

The 1 June guidance sits below what the company delivered for the 12 months ended 31 October 2025, when profit before tax reached £78.2 million, a 6.5% increase year-on-year. Over that prior period, EBITDA rose 5.4% to £120.4 million, laundry revenue grew 17.3% to £112.4 million, and total group revenue increased 2.4% to £315.4 million (3.0% at constant currency). Photobooth revenue fell 4.0%, reflecting the German regulatory issue around passport-photo compliance and a printer supplier problem. The company also announced an £18 million share buyback and raised its total dividend by 9.5% to 8.64 pence per share, returning £32.6 million to shareholders across the year.

The picture, then, is of a business with genuine operational momentum in laundry offset by structural pressure in its largest segment, a management team under scrutiny, and a valuation reset that now places the shares on a P/E below eight with an 8.4% forecast yield. Whether the June guidance cut is a floor or a further step down is the question the next trading update will begin to answer.

Primary Health Properties: 30 years listed, and FTSE 250 ISA shares income investors keep revisiting

Primary Health Properties (LSE: PHP) owns and operates medical facilities including GP clinics and health centres, with the NHS as its principal long-term tenant. The company recently marked 30 years since its initial listing on the London Stock Exchange.

The stock trades at a discount of close to 20% to net asset value. Structured as a real estate investment trust (REIT), PHP must distribute at least 90% of qualifying rental income to shareholders, which anchors the income profile but limits balance-sheet flexibility. The trailing 12-month dividend yield stands at 7.81%, according to the LSE tear sheet, with the first quarterly interim dividend for 2026 set at 1.825 pence per share, equivalent to 7.3 pence annualised.

The 2026 dividend, if paid as forecast, will mark the 30th consecutive annual increase. That is a long record by any measure. It also reflects a relatively predictable revenue base: NHS-backed leases are long-dated, and primary care infrastructure is not a sector governments typically defund without warning.

The risk is the other side of that same coin. PHP is exposed to NHS policy on private facility spending. Any shift in that policy, whether driven by budget pressure or political direction, flows directly into rental income and ultimately dividend capacity. The five-year share price slide that preceded the recent partial recovery reflects how long it took for the market to reprice that risk after interest rates rose.

At the April 2026 AGM trading update, PHP confirmed the dividend comprised a property income distribution of 1.325 pence and a normal dividend of 0.5 pence. The REIT structure means that distinction matters for investors holding shares outside a tax wrapper: property income distributions and ordinary dividends are taxed differently. Inside a Stocks and Shares ISA, that distinction disappears.

How the two sit together in a diversified ISA

These are genuinely different businesses. MEGP is an operationally intensive, consumer-facing equipment operator navigating a second profit warning and governance questions. PHP is an income-focused property trust with NHS dependency, a long dividend record, and a NAV discount that suggests the market is not convinced the rate-cycle headwinds are fully resolved.

Held together, they represent different risk vectors on the income spectrum. The setup for MEGP is binary in the near term: the next trading update either confirms the June guidance as a one-off reset or indicates further deterioration. For PHP, the test is whether the 30th consecutive dividend rise, expected in 2026, arrives without a cut to guidance on rental income growth.