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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 a number of the longest dividend monitor information.
That makes them two of probably the most engaging mid-cap earnings shares on the London Inventory Trade proper now.
However previous efficiency is rarely indicative of future returns and a shifting financial surroundings might spell hassle within the coming years. So how ought to present shareholders put together, and do they nonetheless current a possibility for brand new traders?
A restoration gem
OSB Group kicked-off the yr closely undervalued, buying and selling at simply 0.7 occasions tangible ebook worth and 5.3 occasions ahead earnings. Because the yr progressed, the market repriced mortgage lending threat and reassessed rate-cut implications, resulting in a major enhance 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% yr on yr 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 seems like a compelling earnings possibility to contemplate in 2026.
Nevertheless, it’s value noting that OSB Group’s earnings rely closely on rate of interest margins and the buy-to-let mortgage market. Each are beneath stress 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 prospects 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 no less than £300m, suggesting renewed confidence. With a P/B ratio of solely 0.74, it’s much more undervalued than OSB Group — so 2026 may very well be its yr.
And though it hasn’t raised dividends for a number of years, the continuing progress might make {that a} risk quickly. It has skinny however adequate 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 reduce 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 ebook.
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 well, the well-positioned are inclined to fly and the mixed dividend and progress returns make them profitable picks.
As all the time, any concerns must be made as a part of a well-diversified portfolio, together with some defensive and progress picks within the combine.
