Are these the best FTSE 100 dividend stocks to watch in April 2025?

The FTSE 100 may be continuing to underperform international indices, but the index nevertheless has risen by an impressive 11% year to date — and this excludes dividends. Having smashed through the symbolic 8,000— point barrier, the index currently rests on 8702 points.

FTSE 100 macroeconomics

After meeting the Bank of England’s (BOE) CPI inflation target rate of 2.0% on 2 August 2024, interest rates have gradually been reduced by 0.50 basis points and currently stand at 4.50%.

Recent figures released by the ONS showed that wage growth remains high which could help contribute to rising inflation. This was however largely expected and the BOE claim they remain on track for further rate cuts later this year.

At its most recent meeting on the 20 March, the BOE decided to hold interest rated at 4.50%. This is largely due to uncertainties around potential US tariffs and the impact this could have on inflation.

Whilst the UK economy has now entered into a phase where interest rate cuts are likely, inflation remains above the BOE’s target of 2% and with high service inflation and price increases within the private sector inflation could creep up. If this happens, further rate cuts are likely to be more gradual.

Then there’s the AI—fuelled surge of the US tech stocks to consider. This may be a sustainable rise given the tech advances at hand or it may be a bubble that eventually bursts. If the latter, this excess capital may find itself within FTSE 100 dividend stocks until the storm blows over.

This all makes investing in FTSE 100 dividend stocks complex. In particular, the highest dividend yields can be hostage to economic policy — where individual investment cases and changing financial landscapes can create value traps or payout irregularities.

Open an account and start trading some of the top UK dividend stocks in 2025.

Best FTSE 100 dividend shares to watch

These shares are the highest yielding on the index with a dividend cover ratio of 1 or higher as of 17 March 2025. They may not be the best investments and the dividends and capital itself are not guaranteed.

M&G (Dividend yield: 12.2%)

Savings and investment company M&G reported strong H1 results with assets under administration reaching £346 billion, up from £333 billion the year before. This was driven by positive market movements. Underlying operating profit was down 4% to £375 million, but still exceeded expectations.

Going forward, the company aim to grow its Asset Management and Wealth side of the business, so its profits account for 50% of the overall business, whilst beginning to phase out its annuity portfolio and legacy products.

In September last year the company announced an interim dividend of 6.60p which was paid out to shareholders in October. M&G has a cover ratio of 3.8, which indicates that if its strong performance continues, the company is well positioned to continue with dividend payments.

B&M (Dividend yield: 11.3%)

B&M is a retail company that has 707 stores which are situated in retail parks, shopping areas and town centers across France and the UK. Its stores offer a variety of items which include food, homeware, clothing and pet products.

The company’s Q3 results showed consistent growth with its overall revenue growing by 3.5%, and its UK revenue up 3.7%. In France, the holiday season proved particularly successful where seasonal items helped drive a 12.5% revenue surge.

Looking forward, the retailer is looking to grow and plans to open 73 new stores in the next two—year period.

Its strong financial performance has enabled the company to reward shareholders with a special dividend of 15.0p. Although future dividend payments aren’t guaranteed, the company’s healthy cover ratio of 4.7 positions it well for future payouts.

Our analysts view B&M in a buy position and anticipate its share price could increase by 62% over the next 12 months.

Vodafone (Dividend yield: 7.7%)

In Q3, telecommunications company Vodafone reported robust results with revenue reaching €9.6 billion, up 5% year— on— year. This was mostly due to growth in Turkey, Africa and Other Europe, which helped offset weaker sales in Germany.

Although performance remains strong, like others in the telecom sector, Vodafone faces challenges such as low sales growth relative to spending. The company has restructured by cutting jobs and started merging its UK business with Three. Whilst these business moves are positive, investor sentiment remains cautious and is likely to continue to do so if its performance in Germany doesn’t improve

On 7 February the company distributed a dividend of 2.25¢ per share to shareholders. This dividend payment was reduced from 4.50¢ the previous year after the sale of its Italian and Spanish operations. Vodafone has a dividend cover ratio of 6.90, which indicates that the company has enough cash to continue paying dividends over the next year.

British American Tobacco (Dividend yield: 7.6%)

In 2024 British American Tobacco saw sales increase by 1.3% and revenues for New Category products reached 8.9%.

However, the FTSE 100 tobacco company will have to pivot fast, as sales from traditional smoking products continue to decline across the US. The company are working hard to move its customers onto its next generation vaping products, but this isn’t without risk. The UK recently announced a ban on disposable vapes and is looking to impose a specific vaping tax. This could hit BATS’ long—term ambitions in non—combustible categories and negatively impact margins if similar legislation is adopted more broadly.

On 7 February the company paid out a dividend of 60.60p per share to shareholders. This is up from 58.8795p the year before.

Our analysts have given the stock a buy rating, with an average price target of 3256p.

Smurfit Westrock (Dividend yield: 6.8%)

Smurfit WestRock provides sustainable packaging solutions to companies worldwide. The company was formed through a merger of two packing companies Smurfit Kappa and WestRock which was completed in 2024.

The company reported strong Q4 results, with net income reaching $146 million and its adjusted EBITDA reaching almost $1.2 million. Its full year combined EBITDA reached $4.7 billion, which was in line with its full year guidance.

In its first 6 months as a merged company, Smurfit Westrock has put in place a $400 million cost saving program which is proving successful and further growth opportunities are likely. With its diverse product offering and global presence, the company is well positioned for long—term success.

On 18 March this year the company decided to pay out a dividend payment of 43.08¢ and with a cover ratio of 2.3, it’s likely the company is in a strong position to continue dividend payments into FY26.

How to invest or trade in FTSE 100 stocks with us

1. Learn more about FTSE 100 dividend stocks
2. Decide whether you want to trade or invest
3. Open an account 
4. Search for your chosen stock on our web platform or app
5. Make your investment or trade

When you invest in a share you buy it outright with the view that it’ll increase in value over time.

Trading takes a more short—term view where you look to take advantage of smaller market movements. It involves leverage which allows you to take a position that’s larger than your initial deposit. This means market movements are magnified, and you could gain or lose money faster than expected.

For example, if you trade with 5:1 leverage, you could place a £1000 deposit and manage a £5000 position. A 10% increase or decrease in the market could result in 50% profit or loss on your initial margin.

Negative balance protection will prevent you from losing more than your initial deposit, but market movements can be fast and unpredictable and you could lose your full deposit.