Which Under The Radar UK Stock At All Time Highs Pays Out More Than 3% Dividend?

It is not too often that you find a company that has share price appreciation, a healthy dividend, and has been busy taking out both 52 week and all time highs. Well this is one of those that has gone under our radar for a while, and might warrant a closer look.

The share price of Law Debenture Corporation plc. (LON:LWDB) achieved a noteworthy milestone during Tuesday's session, as its stock value soared to a new 52-week high of 892 pence (GBX) before settling down for a close at 884 GBX. Whilst 8.33% growth in 12 months is not setting any records, the trajectory of the firm has been very steadily climbing. For a certain type of investor interested in the UK market, that is something noteworthy.

So what does the company do? The Law Debenture Corporation is a UK-based investment trust that provides both investment portfolio management and independent professional services. Having been established way back in 1889, it offers a diverse range of investments, primarily in publicly listed equities, aiming to provide long-term capital growth and steadily increasing income for its shareholders.

The company also operates a professional services division, which includes services such as corporate trust, pension trusteeship, and governance services. For the year ending December 31, 2023, the company's net asset value (NAV) grew by 12%, driven by strong performance in its equity investments and steady revenue from its professional services.

In recent times, the firm has been noted as the best performer in the FTSE 250 for women in Leadership, with 59.1% of leadership roles filled by women. This has moved the firm from second position in the previous year, to first in 2024.

The firm's ascent is complemented by a substantial market capitalisation of £1.16 billion and a price-to-earnings (PE) ratio of 15.27 (below UK market average of 16.9). Shareholders recently benefited from the company's financial success through a dividend of 7.99 pence per share, which represents a yield of 3.62%. This dividend payout is an important consideration as it offers a tangible return, in addition to potential capital gains.

The recent performance of Law Debenture’s shares highlights operational successes, and steady growth, but it is always necessary to do your own due diligence on any stock you are considering. There is a lack of visible coverage from the analyst community on LWDB as far as price targets and forecasts, so it is not a huge surprise that outside of certain circles that the firm may have been under the radar.