August '25 dividend portfolio update: is the dry spell about to end?

Welcome to my monthly portfolio update for August. I hope readers have enjoyed a relaxing end to a warm summer.

Here in North Yorkshire, water levels in the region's reservoirs are worryingly low and moorland fires have been burning in the local area for the last three weeks. So I'm hoping for a wet autumn.

However, with luck, any weather-related dampness won't spill over to the stock market. Valuations certainly don't seem too demanding in my view, outside a pocket of highly-rated larger companies.

The FTSE 250 currently offers a forecast yield over 4%, while average forecast yield on the Small Cap index (ex-ITs) is over 4.5%. I reckon there should be scope for growth, unless we're about to see broad-based cuts to earnings forecasts.

Many of the companies in my model dividend portfolio certainly seem attractively valued to me, despite question marks over near-term growth prospects in some sectors.

Uncertainty is a necessary part of investing and I plan to put some of the portfolio's cash pile to work later this year. More on that to follow.

In the mean time, three of the larger companies in my model dividend portfolio found time to issue half-year results during the summer lull:

• A market-leading FTSE 250 firm with a 170-year history, whose CEO earns more than many FTSE 100 bosses;
• A FTSE 100 financial stock with an 8%+ dividend yield, where I suspect the newish CEO may be dialling up risk slightly in an attempt to stimulate growth;
• A FTSE 100 industrial with an impressive record of compound growth, but which may be seeing some weakness from changing market conditions in the US.

I've reviewed each of these below and shared my thoughts on their progress and on any potential concerns I might have.

As a quick reminder, my model dividend portfolio broadly mirrors the shares in my main personal portfolio, although position sizing and cost will vary for practical reasons.

Please note that my comments reflect my personal views and are not investment advice or recommendations. Please do your own research and seek professional advice if needed. Full disclaimer here.

In this month's report

Here is a list of the topics covered in this month's report, together with a short summary of the longer sections below.

Please scroll down for the full report, or click on the links to go directly to a specific section.