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Two promising FTSE 250 dividend shares, OSB Group (LSE: OSB) and Aberdeen Group (LSE: ABDN), have each made features of 40%-50% in 2025. Whereas they aren’t the top-performers on the index, they each have excessive yields and among the longest dividend monitor data.
That makes them two of essentially the most enticing mid-cap earnings shares on the London Inventory Trade proper now.
However previous efficiency isn’t indicative of future returns and a shifting financial atmosphere might spell hassle within the coming years. So how ought to current shareholders put together, and do they nonetheless current a possibility for brand new traders?
A restoration gem
OSB Group kicked-off the 12 months closely undervalued, buying and selling at simply 0.7 instances tangible e book worth and 5.3 instances ahead earnings. Because the 12 months progressed, the market repriced mortgage lending threat and reassessed rate-cut implications, resulting in a major increase for the area of interest mortgage and mortgage supplier.
Now, it’s at a extra reasonable valuation, with a price-to-book (P/B) ratio of 1.1 and ahead price-to-earnings (P/E) ratio of seven.8. This displays its progress but additionally signifies potential room for additional features.
To solidify its earnings credentials, the group boosted dividend 5% 12 months on 12 months to 34p per share and maintains robust protection, with a payout ratio of 48.4%. Backed by 11 years of uninterrupted funds, and it nonetheless appears like a compelling earnings possibility to think about in 2026.
Nevertheless, it’s value noting that OSB Group’s income rely closely on rate of interest margins and the buy-to-let mortgage market. Each are below strain as charges fall and rules tighten, doubtlessly squeezing earnings and the dividend sooner than anticipated.
Coming again strongly
After a tumultuous few years mired by a rebranding disaster, Aberdeen Group has bounced again, as soon as once more with its authentic title. The restoration was largely pushed by the explosive progress of its on-line buying and selling platform, which now boasts nearly 500,000 clients and is without doubt one of the UK’s main direct-to-consumer wealth managers.
Its cost-cutting initiatives are forward of schedule, and administration has raised 2026 revenue steering to a minimum of £300m, suggesting renewed confidence. With a P/B ratio of solely 0.74, it’s much more undervalued than OSB Group — so 2026 could possibly be its 12 months.
And though it hasn’t raised dividends for a number of years, the continued progress might make {that a} risk quickly. It has skinny however enough money protection and earnings about 20% greater than dividends per share. Earnings have elevated 3.7% year-on-year regardless of a 7% drop in income, revealing robust operational effectivity.
Nonetheless, the skinny protection does threat a dividend lower if earnings miss. Plus, the Core Investments division continues to underperform, with solely one-third of funds beating benchmarks.
However with an bettering outlook paired with a 7.5% yield, it’s a dividend inventory value contemplating in my e book.
Mid-cap promise
Naturally, there are stronger and extra well-established dividend shares on the FTSE 100. However what I like about mid-cap’s is their untapped potential. When markets really get better, the well-positioned are inclined to fly and the mixed dividend and progress returns make them profitable picks.
As all the time, any issues ought to be made as a part of a well-diversified portfolio, together with some defensive and progress picks within the combine.
