Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In January 2025, the top-performing dividend-payers included telecom services firm Airtel Africa AAF, biotechnology firm Genus GNS, and advertising agency 4imprint FOUR.
To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar UK Index—which measures the performance of the UK’s broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.
The Best-Performing UK Dividend Stocks of January 2025
1. Airtel Africa PLC Ordinary Shares AAF
2. Genus GNS
3. 4imprint Group FOUR
4. Spectris SXS
5. Smiths Group SMIN
6. Fever-Tree FEVR
7. Spirax Group SPX
8. Endeavour Mining EDV
9. Hikma Pharmaceuticals HIK
10. Intermediate Capital Group ICG
How Have Dividend Stocks Performed?
The Morningstar UK Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying stocks listed in the UK, rose 4.8% over the past month and 13.3% over the past year.
The overall UK stock market, as measured by the Morningstar UK Index, has gained 5.7% on the month and 17.9% on the year.
Yields and Metrics for January’s Best-Performing Dividend Stocks
Airtel Africa PLC Ordinary Shares
Telecom services firm Airtel Africa rose 27.1% in January and gained 33.0% over the past 12 months. Trading at £1.44 per share, its stock has a forward dividend yield of 3.34%. Airtel Africa pays investors a trailing 12-month dividend of 5p per share. The stock has a quantitative Morningstar Rating of 5 stars.
Genus
Biotechnology firm Genus rose 25.4% in January and lost 13.9% over the past 12 months. At £19.44 per share, its stock has a forward dividend yield of 1.65% and a trailing 12-month dividend of 32p per share. It has a quantitative Morningstar Rating of 5 stars.
4imprint Group
Advertising agency 4imprint gained 24.2% in January and rose 13.5% over the past 12 months. The stock’s £60.30 price gives it a forward dividend yield of 2.98%. 4imprint pays investors a trailing 12-month dividend of £1.66 per share. The stock has a quantitative Morningstar Rating of 2 stars.
Spectris
Technical instruments company Spectris rose 21.1% in January and lost 15.8% over the past 12 months. Trading at £30.36 per share, Spectris stock has a forward dividend yield of 2.65% and a trailing 12-month dividend of 79p per share. It has a quantitative Morningstar Rating of 3 stars.
Smiths Group
Specialty industrial machinery firm Smiths gained 20.2% in January and rose 30.0% over the past 12 months. Trading at £20.66 per share, its forward dividend yield is 2.12%. Smiths pays investors a trailing 12-month dividend of 42p per share. The stock, which has a wide economic moat, is trading near its fair value estimate of £20.30 per share. It has a Morningstar Rating of 3 stars.
Fever-Tree
Non-alcoholic beverages company Fever-Tree gained 18.7% in January and fell 19.1% over the past 12 months. At £8 per share, Fever-Tree stock has a forward dividend yield of 2.09% and a trailing 12-month dividend of 17p per share. It has a quantitative Morningstar Rating of 3 stars.
Spirax Group
Specialty industrial machinery firm Spirax rose 18.1% in January and lost 17.5% over the past 12 months. Trading at £80.95 per share, Spirax stock has a forward dividend yield of 2% and a trailing 12-month dividend of £1.60 per share. The stock, which has a wide economic moat, is moderately undervalued, trading 16% below its fair value estimate of £96.50 per share. It has a Morningstar Rating of 4 stars.
Endeavour Mining
Gold company Endeavour Mining rose 15.3% in January and gained 20.9% over the past 12 months. Trading at £16.43 per share, Endeavour Mining stock has a forward dividend yield of 5.58% and pays investors a trailing 12-month dividend of 64p per share. The stock has a quantitative Morningstar Rating of 4 stars.
Hikma Pharmaceuticals
Drug manufacturer Hikma Pharmaceuticals gained 15.0% in January and rose 21.9% over the past 12 months. The stock’s £22.92 price gives it a forward dividend yield of 2.69%. Hikma pays investors a trailing 12-month dividend of 49p per share. The stock has a quantitative Morningstar Rating of 3 stars.
Intermediate Capital Group
Asset management firm Intermediate Capital Group rose 14.7% in January and gained 37.2% over the past 12 months. At £23.70 per share, ICG has a forward dividend yield of 3.35% and a trailing 12-month dividend of 79p per share. It has a quantitative Morningstar Rating of 3 stars.
What Is the Morningstar UK Index?
The Morningstar UK Index measures the performance of the UK’s broad regional markets, targeting the top 97% of stocks by market capitalisation. The index does not incorporate environmental, social, or governance criteria.
What Is the Morningstar UK Dividend Yield Focus Index?
The Morningstar UK Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.
It’s a subset of the Morningstar UK Index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.
The 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to uncover more top-performing or cheap dividend stocks to research further can do the following:
• Review the full list of Dividend stocks included in the Morningstar UK Dividend Yield Focus index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• Read our monthly analysis of the latest dividend moves among the top FTSE 100 dividend payers.
• Use our Morningstar Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures such as price/earnings, and more.
• Use Morningstar Portfolio Manager to build a watchlist of the best dividend stocks and create a view that allows you to easily follow the valuations, ratings, and dividend yields of the stocks in your list.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
