In an environment where share prices have been volatile, focusing on dividends and those companies which can grow their dividend over time has real merit. The fact these businesses feel confident enough to increase their generosity to shareholders and, in the first place, have the financial strength and discipline needed to sustain a regular payout, are real ticks in the box from an investment perspective.

We ran the data on the biggest dividend increases from UK-listed companies – both for the most recently paid dividend and for the forecast payout for their current financial year. We included names which had an historic and forecast increase in the dividend of at least 6% and offered a forecast dividend yield of at least 2% (these increases encompassed special dividends). While the yield on offer from long-term gilts is above 4%, the coupon on government bonds doesn’t grow.

The advantage of investing in a dividend-paying company is it has the ability to increase the payout year after year, though this has to be balanced against the fact dividends are not guaranteed and can be cut or cancelled at a firm’s discretion. From our list of more than 70 names, of which you can see a selection in the table, the team has identified three dividend growth stars. Read on to discover more about them and why we think they can continue rewarding shareholders with generous returns well into the future.

Personal Group (PGH:AIM) 292p

Market cap: £91 million

Workplace benefits and health insurance provider Personal Group (PGH:AIM) may be small now, with a market cap of less than £100 million, but chief executive Paula Constant and chief financial officer Sarah Mace think big.

By 2030, the duo aim to take Personal Group to £100 million of revenue, more than twice what it made last year, and £30 million of EBITDA (earnings before interest, tax, depreciation and amortisation) or three times what it made in 2024.

As well as lifting revenue 13% and EBITDA 29%, the firm won multiple industry awards last year and strengthened its relationship with FTSE 100 accounting and financial software firm Sage (SGE), delivering the best ever months of leads in November and December.

That momentum has carried through into 2025, where the firm is ‘on a great organic trajectory,’ says Paula Constant, as its proposition resonates with customers.

‘We are completely focused on winning new partnerships, maximising the value of our Sage relationship and winning new insurance business,’ explains Constant.

Existing staff benefit partners include B&Q, British Airways, DHL, Mitie (MTO), Ocado Retail and Royal Mail, along with universities and museums.

The Sage Employee Benefit scheme for SME’s delivered a 10% increase in annual recurring revenue last year, while insurance sales rose 18% and an 80%-plus rate of customer retention points to customers valuing the service highly.

There has been plenty going on behind the scenes too, with a focus on recurring revenue streams and less seasonality together with strengthening the balance sheet.

While basic EPS (earnings per share) from operations of 17.7p were up 32%, the full-year dividend was raised by 41% to 16.5p and there is plenty of scope to increase shareholder returns as the firm had cash and bank deposits of more than £25 million and zero debt at the end of December.

Indeed, dividends take priority over M&A, which ‘would have to be absolutely right’ to justify the effort, the money and the headspace, says Constant, especially given the size of the existing addressable market and the significant potential to grow the business organically. [IC]

Ramsdens (RFX:AIM) 287.5p

Market cap: £93.7 million

Investors seeking a fast-growing small-cap with capacity to increase dividends long into the future should also consider pawnbroker-to-financial services provider Ramsdens (RFX:AIM). The Middlesbrough-headquartered concern is well-positioned for growth as the UK population continues to grapple with cost-of-living pressures. And while its dividend growth streak was briefly interrupted by Covid-19, Ramsdens’ progressive payouts are underpinned by the group’s strong cash generation and net cash balance sheet.

For the current year to September 2025, Panmure Liberum forecasts a 15% rise in the shareholder reward to 12.9p – implying a respectable 4.5% yield – ahead of a further advance to 13.3p in full-year 2026 with payouts more than twice-covered by earnings.

Guided by CEO Peter Kenyon, the £93.7 million cap has delivered consistent upgrades for the past four years and is benefiting from investments in growth initiatives, the high gold price and the robustness of a jewellery retail business which continues to win market share.

One of the UK’s largest retailers offering foreign exchange, pawnbroking, precious metals purchasing and jewellery retailing, Ramsdens benefits from a growing and high-repeat customer base. It currently operates mainly in the North of England and Wales, so there is a significant opportunity to expand its physical estate, wring more growth from existing stores and grow its online presence.

While the soaring gold price has driven chunky upgrades in the current financial year, diversified operator Ramsdens is much more than a play on the price of the yellow metal, since prior year upgrades have been stoked by both the pawnbroking and retail jewellery arms.

On 8 April, Ramsdens said pre-tax profit for the year to September 2025 was expected to be ‘at least £13 million’, ahead of previous expectations, having enjoyed ‘continued positive momentum’ in the half to March 2025.

Based on Panmure Liberum’s current year 29.7p earnings per share (EPS) estimate, Ramsdens trades on less than 10 times earnings, which looks too cheap given the scope for additional upwards earnings revisions and the inventory on the balance sheet.

The broker’s 340p price target implies almost 20% upside from these levels, while FirstCash’s (FCFS:NASDAQ) near-£300 million takeover offer for Ramsdens’ larger rival H&T (HAT:AIM) highlighted the attractions of the pawnbroking and jewellery retailing patch, so a future premium-priced bid for the smaller player shouldn’t be ruled out. [JC]

Tristel (TSTL:AIM) 360p

Market cap: £176.5 million

Infection prevention specialist Tristel (TSTL:AIM) has a dividend yield of just over 4%, which is unusual for a quality growth company. It comes about due to the combination of Tristel’s progressive dividend policy and a lacklustre share price.

Tristel’s dividend per share is forecast to grow by 8.5% per year over the next two years, and historically it has grown by high double-digits, reflecting strong growth in the business.

At the current growth rate, the dividend can double in just under nine years, providing investors with a growing income comfortably above the rate of inflation.

Meanwhile earnings per share are forecast to grow by around 15% a year, implying close to 20% annual shareholder returns. 

Growth at Tristel has been driven by increasing global penetration of the company’s proprietary chlorine dioxide technology, which is a proven, patented, high level disinfectant used to prevent infections in non-invasive medical procedures such as ultrasound scans.

The advantages of Tristel’s technology include its convenience, speed and safety.

Tristel earns a relatively high 82% gross margin on sales, reflecting the proprietary nature of its products, which translates into strong cash generation. The company is debt free with around £12 million of net cash on the balance sheet.

An important inflection point occurred in 2023 after the company entered the US market after many years of preparation. Tristel received  regulatory approval for the use of its high-level disinfectant in ultrasound scans and in May 2025 Tristel received US regulatory approval for ophthalmic procedures.

The US is the world’s largest market for ultrasound scans with around 50 million procedures annually. There are an estimated 16 million ophthalmic procedure performed each year in the US.

Tristel has an established manufacturing base in the US through its partnership with Parker Laboratories, the largest supplier of ultrasound transmission gels in the USA, with a nationwide footprint.

The company estimates the addressable market for the high-level disinfecting of ultrasound devices is $100 million a year. Tristel earns a 24% royalty on all of Parker’s US and Canadian sales. [MG]

Getting access to diversified dividends

For those hesitant about taking the risks associated with the dividends from an individual company there are lots of examples of funds and investment trusts which offer a diversified stream of income. Some of these have a specific remit of focusing on dividends, while others have a more balanced approach which still encompasses income.

In the latter category, Royal London Global Equity Select (BL6V111) has a remit of providing growth (through capital gains and income) of 4% a year above the consumer price index over a rolling five-year period. The income class of units in the fund pays out quarterly. The yield is modest at 2.2% but over five years the fund has delivered a total return on an annualised basis of 15.4%. Investment trusts which also have an income component as part of a balanced approach include BlackRock Income & Growth (BRIG).

Investment trusts are a particularly relevant vehicle here thanks to their ability to hold back some of the income they get from underlying holdings to act as a buffer for leaner times. That’s enabled several trusts to consistently increase their dividends for extended periods – some even running into multiple decades.

Examples of trusts which have increased their dividends for 20 years or more include popular one-stop shops Alliance Witan (ALW) and F&C Investment Trust (FCIT), which have increased their dividend for 58 and 54 consecutive years respectively, as well as Merchants Trust (MRCH), which has boosted its payout for 43 years in a row. Steered by Simon Gergel, Merchants yields more than 5% and has ongoing charges of 0.52%.

Examples of trusts which have increased their dividend for 10 years or more include CT UK High Income (CHI), which looks to beat the total return from the FTSE All-Share by investing in around 40 companies, and Chelverton UK Dividend Trust (SDV) which has a bias towards small and mid-cap listed in London.

Income and value-focused Temple Bar (TMPL) recently announced a change to its dividend policy. With many UK companies shifting at least some of their returns of capital into share buybacks, the company is getting less dividends from its portfolio holdings. In response the trust plans to draw on capital reserves to enhance its payouts.

An income driven trust with a global focus is Scottish American (SAIN) – sometimes known as SAINTS – the names in its portfolio largely drawn from the US and Europe (including the UK).

Fund investors, specifically in OEICs and unit trusts, can be faced with the choice between an ‘Inc’ or ‘Acc’ share class - standing for ‘Income’ or ‘Accumulation’.

Put simply, if you invest in the accumulation version of the fund then any income generated from the underlying investments will be automatically reinvested back into the fund, while the income version will see all of that money paid out to you.

Which one you pick depends on whether or not you’re relying on the fund to pay you out an income that you need to use now. For example, someone who is drawing their pension may want the fund’s income to help pay for their lifestyle.

However, someone who is still building up their pension pot and doesn’t need any additional income could buy the accumulation share class and see their income reinvested.

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