The UK inventory market reveals no indicators of weakening because the FTSE 100 continues to climb increased, coming inside a number of proportion factors of 9,000. In the meantime, the pound has grown stronger towards the greenback, rising 2% prior to now month.

Sometimes, a rallying inventory market results in falling yields as the 2 elements transfer inversely.

Nonetheless, many top-performing FTSE dividend shares have maintained their excessive yields by growing dividends. The insurance coverage and property sectors are nonetheless two of one of the best locations to search for high-yield UK shares. Shares like Phoenix Group, M&G, and Taylor Wimpey all keep yields above 8%, regardless of having fun with 8% to 10% good points prior to now month.

However that’s not the one place the place buyers can discover one of the best UK dividend shares to purchase in 2025. I’m extra within the potential of two smaller FTSE 250 dividend shares that I personal. OSB Group (LSE: OSB) and Main Well being Properties (LSE: PHP) are two of my favorite UK passive revenue shares and I believe dividend-focused buyers could be sensible to contemplate them.

OSB Group

Barclays not too long ago lower its price goal for OSB Group to 635p from 650p. Nonetheless, it maintains an Chubby ranking on the inventory, with the goal representing roughly a 50% acquire.

The Kent-based challenger financial institution has a 7.7% yield, ramping up dividends at a fee of 16.4% over the previous 5 years. For 2023, complete dividends amounted to 32p per share, a determine that appears more likely to enhance for 2024.

Latest price exercise has been muted, with the shares down 1.12% prior to now yr. The subdued development displays weaker efficiency, with earnings per share (EPS) falling from £1 per share to 75p in 2023. EPS for 2024 is predicted to come back in at 82p when full-year outcomes are posted on 13 March 2025.

General, analysts stay optimistic concerning the inventory. 9 out of 11 have a Robust Purchase ranking with a mean 12-month price goal of 553p — a 30% acquire.

Main Well being Properties

Like OSB Group, Main Well being Properties has been buying and selling sideways, with the share price down 0.7% prior to now yr. The actual property funding belief (REIT) focuses on shopping for and letting healthcare premises like hospitals and docs’ places of work.

REITs are usually well-liked UK shares with these on the lookout for excessive yields as the foundations require them to return 90% of earnings to shareholders as dividends.

Please observe that tax therapy is determined by the person circumstances of every consumer and could also be topic to alter in future. The content material on this article is supplied for info functions solely. It isn’t meant to be, neither does it represent, any type of tax recommendation.

Labour’s sweeping price range reforms final October hit the REIT market onerous, with costs falling throughout the board. However after hitting a five-year low of 86p final month, Main Well being took a shock flip, gaining 7.3%. Nevertheless it nonetheless has an extended approach to go to regain its five-year excessive of 168p.

Rates of interest have been a key issue within the weakened efficiency, as the corporate depends on debt financing to fund property acquisitions. Latest fee cuts might have helped shore up the share price however it’s not within the clear but. If the Financial institution of England’s fee lower plans don’t work as hoped, issues might take a downward flip once more.

Nonetheless, I believe the FTSE 250 dividend inventory, with its 7.6% yield and 20+ years of stable dividend development, is among the finest for 2025.