With an average dividend yield of 3.5%, dividends have formed over half of the total return. It brought valuations down to very attractive levels, particularly in the unloved UK market. The UK market is leading other major markets in ‘all-in’ yield, which combines dividends and buybacks. Private equity and trade buyers recognise the opportunity, and the UK market has seen significant merger and acquisition activity. The company has a strong market position and it continues to build market share through new stores and formats.

Source: The Times April 14, 2025 09:00 UTC