Top 10 UK Dividend Stocks To Watch In April 2025

Highlights 

• Fresnillo (LON:FRES), Airtel Africa (LON:AAF), and Ithaca Energy (LON:ITH) recorded the strongest Q1 performances among dividend payers. 
• Screening criteria included a minimum forward dividend yield of 1.5%, excluding REITs. 
• Several companies demonstrated strong share price momentum and robust dividend yields above 4%. 

Dividend-paying stocks in the UK equity market showcased significant strength during the first quarter of 2025, with a notable surge among companies involved in mining, telecommunications, and energy. These income-generating shares not only provided consistent cash flow through dividends but also delivered strong capital appreciation. 

The top 10 dividend stocks were identified by applying a screening filter across UK-listed companies with a forward dividend yield of at least 1.5%, while real estate investment trusts were deliberately excluded. The selection focused on large- and mid-cap companies that reflect approximately 97% of the total market capitalisation in the UK. 

Fresnillo (LON:FRES) 

Fresnillo, a prominent precious metals miner, posted a substantial 50.6% share price increase in Q1 2025. Over the past 12 months, its total gain has reached 101.0%. With a forward dividend yield of 2.75%, it pays a trailing 12-month dividend of 4p per share. This mining company remains a standout in terms of both yield and price momentum. 

Airtel Africa (LON:AAF) 

Airtel Africa, a key player in telecom services across the African continent, experienced a 45.8% increase in share price during the first quarter and has gained 61.1% over the past year. Its forward dividend yield stands at 2.91%, with a trailing 12-month dividend payment of 5p per share. 

Ithaca Energy (LON:ITH) 

Ithaca Energy, engaged in oil and gas exploration and production, delivered a 44.6% return in Q1 2025, and a 32.8% gain over the past 12 months. Its forward dividend yield is notably high at 17.16%, driven by a trailing 12-month dividend of 18p per share, which is among the highest in the list. 

BAE Systems (LON:BA) 

BAE Systems, a major aerospace and defense contractor, achieved a 35.8% rise in the first quarter and a 17.9% gain over the past 12 months. Its current price of £15.60 offers a forward dividend yield of 2.12%, with a trailing dividend of 31p per share. The company operates with a wide economic moat and maintains pricing power across its core defense platforms. 

TBC Bank Group (LON:TBCG) 

TBC Bank Group recorded a 32.4% increase in Q1, and a 34.7% improvement over the last 12 months. Trading at £41.30 per share, it offers a forward dividend yield of 5.6% and pays out £2.11 per share over the trailing 12-month period. The bank continues to attract attention for its dividend strength relative to peers in the financial sector. 

Prudential UK (LON:PRU) 

Prudential UK, a life insurance provider, climbed 31.7% in Q1 2025 and advanced 13.6% over the past year. Its stock, trading at £8.26, has a forward dividend yield of 2.15% with a 17p per share payout. The share price is currently trading well below intrinsic value estimates, suggesting further room for valuation recovery. 

Endeavour Mining (LON:EDV) 

Endeavour Mining, focused on gold production, advanced 30.7% during the quarter and has gained 17.7% over the past year. Shares are priced at £18.19, providing a forward dividend yield of 4.84%. The company returns 65p per share to shareholders annually and remains closely watched in the gold sector. 

Coca-Cola HBC (LON:CCH) 

Coca-Cola HBC, a major bottler of non-alcoholic beverages, rose 28.3% in Q1 and delivered a 43.2% gain over the past 12 months. With shares trading at £35.04, the forward dividend yield is 2.24%, and the trailing dividend sits at 77p per share. The valuation indicates a 35% premium relative to estimates, suggesting strong investor demand for defensive consumer stocks. 

Bakkavor Group (LON:BAKK) 

Bakkavor Group, a leading packaged food company, registered a 21.9% rise in Q1 and a 71.8% surge over the last 12 months. With a share price of £1.78, the company’s forward dividend yield is 4.49%, supported by a trailing dividend of 8p per share. Strong growth has positioned it as a key performer in the consumer staples sector. 

Genus (LON:GNS) 

Genus, a biotechnology firm specialising in animal genetics, delivered a 20.9% gain in the first quarter and a 7.4% increase over the past year. Its share price of £18.64 yields 1.72%, with a trailing dividend of 32p per share. Despite being among the lower-yielding names on this list, it has shown stability and resilience. 

Broader Index Context 

The broader universe of dividend-paying equities was assessed using the UK equity benchmark, which covers approximately 97% of market capitalisation across large- and mid-cap segments. The selection methodology focused on forward yield and financial strength while excluding real estate investment trusts. 

A supplementary index, the UK Dividend Yield Focus Index, provides deeper insights into high-quality dividend-paying stocks. This index selects 25 companies with the strongest combination of dividend yield, financial durability, and sector-relative strength, weighted by the total dollar value of dividends paid. This index does not integrate environmental, social, or governance criteria in its screening process. 

Sectoral Observations 

Among the top performers in Q1 2025, the mining, energy, and telecom sectors were dominant contributors. Gold and precious metals producers capitalised on favourable commodity prices, while oil and gas companies benefited from sustained demand and attractive upstream economics. Telecommunications firms leveraged consistent cash flows and subscriber growth across emerging markets to maintain dividend payouts. 

Consumer staples companies also showed robust performance, highlighting the defensive appeal of essential goods producers. The combination of moderate yield and earnings predictability contributed to rising share prices in this segment. 

Conclusion 

The first quarter of 2025 demonstrated the resilience and potential of income-generating stocks in the UK market. High-yielding companies in sectors such as energy, telecom, defense, and consumer goods led the charge, supported by strong financials and favourable market dynamics. These businesses not only provided steady income through dividends but also contributed to capital appreciation, reaffirming their appeal in a diversified equity portfolio.