3 UK Dividend Powerhouses for Defensive Investors in 2025

In a world where geopolitical tensions, interest rate volatility, and economic uncertainty dominate headlines, defensive investors need rock-solid companies that offer steady dividends, resilient cash flows, and tailwinds from global trends. Today, I’m spotlighting three UK-based powerhouses—BAE Systems, Bloomsbury Publishing, and JPMorgan Global Growth & Income Trust—that fit the bill perfectly. These stocks combine 4.6%–6.5% dividend yields, fortress-like balance sheets, and structural advantages to thrive in 2025 and beyond. Let’s dive in.

1. BAE Systems: Defense Stocks Are the New "Gold"

Why It’s a Buy: With a record £77.8 billion order backlog and 7-9% revenue growth projected for 2025, BAE Systems is the ultimate defensive play. Geopolitical tailwinds—from Russia’s invasion of Ukraine to Europe’s post-Cold War modernization—are driving a 9.4% annual rise in defense spending, the fastest since 1988.

• Dividend Strength: The dividend yield is currently 2.1%, but it’s set to climb to 2.6% by 2027, with a robust 2.1x dividend cover ensuring payouts are safe.
• Risk Management: Long-term contracts (spanning years) insulate revenue from short-term shocks. Even supply chain hiccups are manageable—BAE’s U.S. supply chains shield it from tariffs.

Cramer’s Call: This isn’t just a dividend stock—it’s a bet on global security spending. Buy now while the yield is low, and watch it rise as defense budgets hit record highs.

2. Bloomsbury Publishing: Franchise Content = Cash Flow Gold

Why It’s a Buy: Bloomsbury is the Amazon of books—a content powerhouse with 32% revenue growth in H1 2024/25, fueled by bestsellers like Harry Potter and Crescent City. Its academic division, bolstered by the Rowman & Littlefield acquisition, adds stability through digital resources like Bloomsbury Digital, which now accounts for 52% of academic revenue.

• Dividend Strength: The interim dividend rose 5% to 3.89p, and the full-year yield could hit 2.5%+ (assuming a £600 stock price). With £26.6 million profit growth, Bloomsbury is primed to push yields toward 4.6% by year-end.
• Risk Management: Diversified geographically (now the 39th largest global publisher) and across genres, it’s insulated from sector-specific slumps.

Cramer’s Call: This isn’t just a publishing play—it’s a franchise-driven cash machine. Buy before the market catches on to its digital dominance and dividend upside.

3. JPMorgan Global Growth & Income Trust: Diversification on Steroids

Why It’s a Buy: With a 3.91% TTM yield (rising to 4.1%+ post-merger with Henderson Trust), this trust is a diversified dividend dynamo. Its barbell strategy—mixing high-growth tech stocks (AI, cloud computing) with defensive healthcare and infrastructure—delivers steady returns while shielding investors from volatility.

• Dividend Strength: The trust’s flexible dividend policy (paying from capital reserves) ensures payouts even if NAV dips. Post-merger, assets will hit £3.4 billion, slashing costs and boosting liquidity.
• Risk Management: No gearing, low fees (0.43% dropping to 0.42%), and a track record of outperforming the MSCI ACWI Index since 2019.

Cramer’s Call: This is the best way to play global growth without overexposure to any one sector. The merger alone makes this a buy-and-hold forever stock.

Risks? Sure—But the Upside Outweighs Them

• Currency Fluctuations: BAE’s U.S. exposure and JPMorgan’s global holdings could face forex headwinds.
• Regulatory Shifts: Bloomsbury faces scrutiny in digital markets, but its lobbying efforts (e.g., supporting the UK’s 2024 Digital Markets Act) are a plus.
• Dividend Volatility: JPMorgan’s yield hinges on NAV stability, but its 4% minimum payout policy provides a floor.

Final Verdict: Buy These 3 Now

In 2025, defensive investors need income, resilience, and tailwinds. BAE Systems, Bloomsbury, and JPMorgan Global Growth & Income Trust deliver all three.

• BAE Systems: For defense spending bets—yield to 2.6% by 2027.
• Bloomsbury: For franchise-driven growth—yield hitting 4.6%+ by year-end.
• JPMorgan Global Growth & Income Trust: For diversified, leveraged returns—yield rising to 4.1%+ post-merger.

These aren’t just stocks—they’re anchors for your portfolio. Don’t let uncertainty shake you—act now.

This article is for informational purposes only. Always conduct your own research before making investment decisions.