October '25 dividend portfolio update: will this UK manufacturer be an AI winner?

Only two companies from my dividend portfolio published accounts in October. I think it's fair to say that both are facing headwinds at the moment; both reported small declines in revenue and profit last year. However, I believe they both have intriguing prospects that continue to justify a place in my portfolio.

One of these is a biotech company whose long-term prospects could be transformed by a new product. In the meantime, its existing portfolio looks likely to continue providing an attractive run-off income – although tougher competition is putting these previously reliable earnings under some pressure.

The second company is a leading UK manufacturer in its sector. These results suggest it has the potential to benefit from the accelerated global rollout of new AI data centres. While the business itself has nothing to do with computing, it does make a product that's widely used in facilities hosting high-end electronic equipment.

Management at this family firm have invested in upgrades over the last year to better target the AI opportunity. They are confident that trading headwinds elsewhere in its business can be managed and addressed.

With a 6.5% dividend yield and a very strong balance sheet, I'm happy to remain patient with this stock. It's also currently one of the highest-ranked stocks in my screen results.

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.

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