10 Safest Dividend Stocks in the UK

2. Pentair plc (NYSE:PNR)

Number of Hedge Fund Holders: 47

Pentair plc (NYSE:PNR) is an American company specializing in water treatment. Although headquartered in the United States, it is legally incorporated in Ireland and maintains its tax residency in the United Kingdom. In the fourth quarter of 2024, it reported revenue of $973 million, reflecting a 1% decline from the previous year. Despite this, the figure exceeded analysts’ expectations by $2.05 million. The company’s Move, Improve, and Enjoy Water segments continued their strong performance, achieving record margins for another consecutive year following the nVent separation in 2018. Within the Flow segment, the Commercial division experienced further expansion, while adjustments were made to enhance the go-to-market strategy in the Industrial division. Meanwhile, Water Solutions saw continued growth in filtration sales, and the Pool segment returned to sales growth, driven by robust aftermarket demand.

Analysts see potential for growth in Pentair plc (NYSE:PNR)’s residential and industrial water technology solutions, as well as its residential pool products, particularly as lower interest rates drive higher consumer spending. This is especially relevant for pool products, where discretionary purchases are closely linked to housing market trends. In the past 12 months, the stock has surged by over 30%.

Pentair plc (NYSE:PNR) delivered solid cash flow performance, generating $767 million in operating cash flow and $693 million in free cash flow. The company currently distributes a quarterly dividend of $0.23 per share, following an 8.7% increase in December 2024. This latest hike extended its record of consecutive annual dividend increases to 49 years, which makes it one of the best FTSE dividend stocks on our list. On February 10, the stock’s dividend yield came in at 1.01%.