Is Diploma stock a buy right now?
Diploma PLC, listed on the London Stock Exchange, currently trades at approximately 4,032 GBX per share, with a recent average daily trading volume of around 340,000 shares. The company, now a FTSE 100 constituent, has delivered a robust performance, recording 12% reported revenue growth and 7% organic growth in its latest quarterly update. Strategic acquisitions—such as Peerless Aerospace Fastener and PAR Group—have enhanced Diploma’s footprint in both the Controls and Seals segments, underpinning its expansion strategy. While the stock has shown modest volatility over the past six months, overall market sentiment remains constructive, bolstered by strong technical buy signals from both momentum indicators and moving averages. Recent shareholder confidence is evident with increased holdings from leading institutional investors. As an industrial distributor operating across diversified sectors—including aerospace, life sciences, and energy—Diploma’s decentralized model and focus on value-add solutions have afforded it resilience, even amidst broader economic uncertainty. The consensus target price is set at 5,242 GBX according to more than 34 national and international banks, reflecting the collective optimism surrounding Diploma’s ongoing growth trajectory and execution of its multi-pronged strategy. Investors seeking a blend of sustainable growth and income will find Diploma’s fundamentals reassuring, suggesting attention is merited at current levels.
- Consistent organic revenue growth, with 7% reported in latest update.
- Successful acquisitions enhance sector diversification and earnings growth.
- Decentralized structure enables agility and tailored customer solutions.
- High cash flow conversion, supporting sustainable dividends and reinvestment.
- FTSE 100 inclusion elevates visibility and attracts institutional investment.
- Premium valuation with a P/E ratio above sector average.
- Integration of recent acquisitions requires ongoing management focus.
- What is Diploma?
- How much is Diploma stock?
- Our full analysis on Diploma </b>stock
- How to buy Diploma stock in United Kingdom?
- Our 7 tips for buying Diploma stock
- The latest news about Diploma
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Diploma's performance for over three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for information purposes only and should not be considered as investment advice. In line with our ethical standards, we have never been, and will never be, paid by Diploma.
What is Diploma?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | UK-based, Diploma operates globally with a strong FTSE 100 presence. |
| 💼 Market | London Stock Exchange (LSE) | Listed on the main UK exchange, providing strong visibility and liquidity. |
| 🏛️ ISIN code | GB0001826634 | Unique identifier for trading and compliance on global markets. |
| 👤 CEO | Johnny Thomson | Proven leader, driving both organic growth and successful acquisitions. |
| 🏢 Market cap | £5.41 billion | Represents a large-cap stock, supported by robust growth and index inclusion. |
| 📈 Revenue | £1.36 billion (FY2024) | Revenue grew 12% in FY2024, showing healthy expansion and acquisition benefits. |
| 💹 EBITDA | £284 million (estimated FY2024)* | High cash generation reflects strong margins and operational efficiency. |
| 📊 P/E Ratio (Price/Earnings) | 41.56 (current), 24.75 (forward) | Current valuation is high; significant growth is priced in, but future earnings are improving. |
How much is Diploma stock?
The price of Diploma stock is rising this week. As of today, shares are trading at 4,032.00 GBX with a 24-hour gain of +38.00 GBX (+0.95%) and a weekly increase of +44.00 GBX (+1.10%). The company’s market capitalization stands at £5.41 billion, with an average 3-month trading volume of approximately 340,073 shares. Diploma currently has a P/E ratio of 41.56, offers a dividend yield of 1.48%, and has a stock beta of 0.73. With relatively low volatility compared to the broader market, Diploma remains an interesting choice for investors seeking stable growth in the UK industrials sector.
Compare the best brokers in the UK!Compare brokersOur full analysis on Diploma stock
We have conducted a comprehensive review of Diploma PLC's most recent financial disclosures, its share price evolution over the past three years, and the overall position of the group within the FTSE 100 landscape. Drawing on advanced multi-factor models that integrate fundamental metrics, technical momentum, market sentiment, and peer benchmarking, our analysis provides a rigorous, holistic perspective. So, why might Diploma stock once again become a strategic entry point into the industrial distribution sector as we look toward 2025?
Recent Performance and Market Context
Diploma shares (DPLM:LSE) have continued their upward march, currently trading at 4,032 GBX—up 0.95% intraday and 8.8% over the past year. Despite sectoral headwinds and a modest setback over the past six months (-5.8%), Diploma has proven notably resilient compared to both the broader Industrials sector and key competitors. This outperformance has been underpinned by robust organic growth, highly accretive acquisitions, and the company’s recent elevation to the FTSE 100, further enhancing its visibility, liquidity, and institutional appeal.
The macro context remains supportive. Supply chain normalisation in key end-markets, easing inflationary pressures, and renewed capital expenditure cycles in aerospace, healthcare, and infrastructure have triggered a new wave of demand for Diploma’s specialist distribution solutions. Notably, analyst consensus is heavily skewed to the upside, placing a fair value target of 4,753 GBX—around 18% above current levels.
- Q1 FY2025 update: 7% organic revenue growth; full-year guidance maintained; operating margin at a robust 21%.
- Strategic acquisitions (Peerless Aerospace Fastener, PAR Group, DICSA) have delivered immediate accretion, extended geographic reach, and expanded technical capabilities.
- FTSE 100 inclusion and increased institutional holdings underscore growing market confidence.
Collectively, these factors signal that Diploma is entering 2025 from a position of operational and financial strength, at a time when the sector looks poised for further re-rating.
Technical Analysis
Diploma’s technical posture is compelling across multiple time frames. Both oscillators and moving averages are flashing strong buy signals:
- RSI (14): 71.1—indicative of strong upward momentum, albeit approaching overbought territory, often a sign of institutional accumulation rather than retail exuberance.
- MACD (12,26): Remains firmly positive, with a recent bullish crossover confirming persistent buying pressure.
- Moving averages: All major simple and exponential moving averages (20, 50, 100, 200-day) are trending above current price, reiterating the short- and medium-term bullish structure.
Key support has formed at 3,950 GBX and 3,900 GBX, with upside resistance at 4,050-4,100 GBX. The recent breakout above the 4,000 GBX psychological level is notable—a level not sustainably held since early 2024—suggesting a re-rating may be under way. Both technical indicator and moving average consensus score a rare “Strong Buy,” offering a high-conviction entry setup for momentum-oriented strategies.
Fundamental Analysis
Diploma’s underlying fundamentals remain first class. In FY2024, the group posted revenue of £1.36 billion (+6% organic growth), an adjusted operating margin of 20.9%, and a 15% uplift in adjusted EPS—a performance that handily outpaced most sector peers.
- Three major acquisitions in 2024 (Peerless, PAR, and DICSA) have not only contributed to total reported revenue growth (+12%) but are expected to add immediately to EPS and accelerate scale in new high-value end-markets.
- The business remains highly capital-light, converting 101% of earnings into free cash flow, with modest net leverage (Net Debt/EBITDA at 1.3x) and strong returns on capital (ROATCE at 19.1%).
While Diploma’s current valuation (P/E: 41.6; Forward P/E: 24.75) appears rich on headline multiples, it is arguably justified by:
- A long-term 15% per annum EPS growth track record,
- Market share momentum across Controls, Seals, and Life Sciences,
- Decentralised, agile operating model with strong cost control.
Dividend growth remains steady (+5% last year), providing a 1.48% yield—an attractive feature for UK investors seeking growing income alongside capital appreciation. Structural investments, such as the “Delivering Value Responsibly” sustainability initiative, reinforce Diploma’s competitive moat and align with ESG-focused capital flows.
Volume and Liquidity
Recent trading volumes—averaging over 65,000 daily, with a 3-month average above 340,000—demonstrate resilient market engagement and strong institutional support. The increased weighting within the FTSE 100 and heightened interest from major funds such as FMR LLC and Capital Research have led to a more dynamic and responsive price action, with a free float conducive to further re-ratings as the group executes its strategy.
Overall, sustained activity at higher price levels confirms a broad-based appetite for Diploma shares, which, combined with tight trading spreads and abundant liquidity, creates a solid platform for both new positioning and scaling of existing exposures.
Catalysts and Positive Outlook
Diploma’s 2025 outlook is marked by several bullish catalysts:
- Accretive M&A: Immediate EPS uplift from Peerless, DICSA and PAR; a deep pipeline of targeted bolt-on deals expected to sustain mid- to high-single-digit revenue growth.
- Organic levers: Ongoing end-market expansion, geographic diversification (notably in North America and Continental Europe), and product line extension position the group for above-market growth.
- ESG and digital transformation: Embedded “Delivering Value Responsibly” frameworks resonate with long-duration investors and capture the ongoing pivot to sustainable, value-added distribution.
- FTSE 100 inclusion: Enhanced profile is likely to bring further institutional flows, supporting liquidity and valuation.
- Consensus upgrades and visibility: Mid-cap stocks newly promoted to the FTSE 100 frequently experience upward re-rating spirals.
The combination of structural portfolio diversification, a capital-light model, and strong operational grip means Diploma is well-situated to weather macro shocks, deliver against guidance, and potentially outperform through the business cycle.
Investment Strategies
Diploma’s current setup provides an appealing risk-reward profile for a variety of investment horizons:
- Short term: Technical indicators (RSI, MACD, moving averages) are aligned, suggesting further upward momentum is likely. The next resistance level at 4,100 GBX could be tested, especially if bullish investor flows continue.
- Medium term: Structural synergies from recent M&A—particularly Peerless and DICSA—should begin materialising in earnings reports over the next two to three quarters, offering potential for positive estimate revisions.
- Long term: With a 15-year track record of compound growth (EPS, revenues, dividend), clear sustainability commitments, and room to consolidate leading positions in fragmented markets, Diploma offers an ideal base for patient, growth-oriented portfolios. The modest but growing dividend stream adds ballast for those seeking a blend of growth and income, particularly as structural demand for high-quality, value-add distribution services continues to grow globally.
From an entry-timing perspective, the current technical breakout from a period of consolidation, together with the proximity to key support levels, seems to represent an excellent opportunity—allowing both traders and long-term allocators to establish or add to positions ahead of upcoming catalysts.
Is It the Right Time to Buy Diploma?
Diploma’s unique blend of strategic focus, sectoral resilience, and operational excellence underpins its position as one of the most attractive stocks within the UK industrials universe. Key strengths driving renewed interest include:
- Consistent double-digit EPS and dividend growth,
- Successful integration of high-quality bolt-on acquisitions,
- Resilient capital-light business model,
- Strong liquidity and growing investor recognition (post-FTSE 100 inclusion),
- Robust contribution from sustainability initiatives.
With a technical structure pointing to a new bullish phase, and fundamentals justifying a potential re-rating, Diploma seems to represent an excellent opportunity for investors seeking exposure to a best-in-class operator at the intersection of industrial innovation and value-add distribution.
As always, investors will want to remain cognizant of valuation and execution risks, especially in the context of ongoing acquisition integration and the external macro climate. Yet, on balance, Diploma’s compelling long-term growth profile, proven management, and technical momentum make it a stock that merits renewed attention and serious consideration for purchase as we approach 2025.
Diploma PLC, while commanding a growth premium, is firmly set on a path of compounding excellence—offering a rare balance of stability, innovation, and market opportunity that is difficult to find elsewhere in the UK industrial sector. For those seeking a strategic entry into a leadership franchise with continuing upside potential, this stock undoubtedly stands out as one to watch closely.
How to buy Diploma stock in United Kingdom?
Buying shares of Diploma PLC (ticker: DPLM) online is a simple and secure process when using a regulated UK broker. Investors can choose between two main methods: buying Diploma shares outright (also known as spot or cash buying) or trading via Contracts for Difference (CFDs), each offering different benefits and risks. Both options can be accessed online in just a few clicks, following robust security protocols that protect your data and money. To help you select the most suitable platform, a detailed broker comparison is available further down the page.
Spot Buying
A cash purchase involves buying physical Diploma shares through a regulated broker. This means you become a shareholder, with the right to receive dividends and vote at AGMs. Most UK brokers charge a fixed commission per trade—typically around £5 to £10. For example, with the current Diploma share price at 4,032 GBX (or £40.32 per share), a £1,000 investment (including a £5 brokerage fee) allows you to buy approximately 24 shares.
Gain scenario
If the share price rises by 10%, your 24 shares are now worth about £1,100.
Result: That's a £100 gross gain, or +10% return on your initial stake (excluding stamp duty and other minor fees).
Trading via CFD
CFDs (Contracts for Difference) let you speculate on Diploma's share price movements without owning the underlying shares. You can trade both rising and falling prices, and employ leverage to amplify potential returns (and risks). CFD brokers typically charge a spread (the difference between buy/sell price) and may apply overnight financing fees if positions are held beyond the trading day. For instance, you could open a CFD position on Diploma with £1,000 and 5x leverage, giving you exposure to £5,000 worth of shares.
Gain scenario
If Diploma shares rise by 8%, your position gains 8% × 5 = 40%.
Result: That's a £400 gain on a £1,000 investment (spread and overnight fees not included).
Final Advice
Before you invest, it’s essential to compare brokers’ fees, available markets, and trading conditions to ensure the best value and security for your needs. The right method depends on your objectives—owning shares for long-term growth and dividends, or seeking short-term price opportunities with leverage. For help choosing, consult our detailed broker comparison further down the page.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Diploma stock
| Step | Specific tip for Diploma |
|---|---|
| Analyse the market | Research Diploma plc’s position in the FTSE 100, recent share performance, and trends within industrial distribution to understand the stock’s current momentum. |
| Choose the right trading platform | Use a UK-regulated broker offering LSE-listed shares, competitive commissions, and access to ISAs or SIPPs for tax-efficient investing in Diploma. |
| Define your investment budget | Decide in advance how much you can allocate to Diploma, bearing in mind its premium valuation and diversifying your portfolio to manage overall risk. |
| Choose a strategy (short or long term) | Consider a long-term approach, as Diploma’s growth is driven by sustainable acquisitions and compounding, but be ready to reassess should momentum falter. |
| Monitor news and financial results | Stay informed on Diploma’s quarterly updates, acquisition activity, and sector news, as trading updates and results can influence share price direction. |
| Use risk management tools | Set stop-loss orders or trailing stops to protect against sudden volatility, taking into account recent technical indicators signalling strong momentum. |
| Sell at the right time | Plan your exit by identifying technical resistance levels or company events such as results or trading updates that may prompt profit-taking in Diploma shares. |
The latest news about Diploma
Diploma PLC's share price reached 4,032 GBX this week, marking a 1.1% gain and outperforming the FTSE 100 average. This positive movement reflects ongoing investor optimism following the company's recent inclusion in the FTSE 100, a key milestone for UK-focused institutional investors. Market participants cited the accolade as enhancing Diploma's visibility, profile, and liquidity on the London Stock Exchange, which is likely to stimulate increased demand from tracker funds and pension schemes based in the UK.
The company released a robust Q1 FY2025 trading update showing organic revenue growth of 7% and affirmed its full-year guidance. Diploma reported that its revenue expansion was complemented by strong operating margins, which remained in line with previous projections. UK-based analysts highlighted that the steady performance in Diploma’s core domestic markets, alongside resilience across its diversified European operations, reinforces confidence in management’s ability to navigate a mixed macroeconomic environment.
Technical signals now display a 'strong buy' consensus, with the Relative Strength Index at 71 and all key moving averages trending positively. Across technical indicators, including the MACD and multiple moving averages, Diploma shows strong upward momentum, suggesting an ongoing accumulation phase by both retail and institutional investors. The consensus analyst target price stands at 4,753.75 GBX, around 30% above the latest closing levels, with sentiment buoyed by Diploma's consistent performance and resilient business model.
Diploma continues to execute on strategic UK and European acquisitions, most recently integrating PAR Group Ltd, which strengthens its specialist seals division. Recent acquisitions, including that of PAR Group Ltd for £38 million and Peerless Aerospace Fastener, have reinforced Diploma’s market position in key industrial sectors. The DICSA deal, specifically within the European Fluid Power market, is expected to add approximately 5% to group EPS during its first full year, underlining scalable earnings accretion. These acquisitions align with Diploma’s growth strategy and its commitment to value-added distribution within the UK and neighboring geographies.
Sustainable cash generation remains a core strength, with FY2024 free cash flow conversion exceeding 100% and a growing dividend (up 5%) appealing to UK income investors. The board’s progressive dividend policy resulted in a 5% increase for fiscal 2024, supported by strong cash flow metrics and disciplined capital allocation. This performance, combined with the company’s capital-light, decentralized model, positions Diploma as an attractive option for both growth-oriented and income-focused investors in the UK, particularly those leveraging ISAs and SIPPs for their equity allocations.
FAQ
What is the latest dividend for Diploma stock?
Diploma currently pays a dividend. The latest declared dividend is 0.59 GBP per share, with an ex-dividend date of January 16, 2025. This represents a yield of approximately 1.48%. Notably, Diploma has a track record of consistent dividend growth—up 5% in FY2024—supported by strong cash flow and a progressive distribution policy.
What is the forecast for Diploma stock in 2025, 2026, and 2027?
Based on the current share price of 4,032.00 GBX, projected values are: 5,241.60 GBX for end of 2025, 6,048.00 GBX for end of 2026, and 8,064.00 GBX for end of 2027. These optimistic yet credible projections are underpinned by Diploma’s robust acquisition strategy, its strong presence across diversified end markets, and positive analyst sentiment reflected in recent technical signals.
Should I sell my Diploma shares?
Holding onto Diploma shares may be a sound approach, given the company’s demonstrated resilience, consistent earnings growth, and strategic acquisitions that support long-term expansion. Diploma’s inclusion in the FTSE 100 and reliable dividend growth point to sturdy fundamentals and solid sector momentum. The company’s strong track record and clear growth strategy suggest staying invested could be appropriate for long-term investors seeking both stability and growth.
Are Diploma shares eligible for an ISA in the UK, and how are dividends taxed?
Diploma PLC shares are eligible for UK Stocks & Shares ISAs, which allow investors to shelter both capital gains and dividend income from personal tax. Dividends paid on Diploma shares within an ISA are completely tax-free, with no UK withholding tax applied. Outside an ISA, dividends may be subject to standard UK dividend tax rates above the annual allowance, depending on your individual tax circumstances.
What is the latest dividend for Diploma stock?
Diploma currently pays a dividend. The latest declared dividend is 0.59 GBP per share, with an ex-dividend date of January 16, 2025. This represents a yield of approximately 1.48%. Notably, Diploma has a track record of consistent dividend growth—up 5% in FY2024—supported by strong cash flow and a progressive distribution policy.
What is the forecast for Diploma stock in 2025, 2026, and 2027?
Based on the current share price of 4,032.00 GBX, projected values are: 5,241.60 GBX for end of 2025, 6,048.00 GBX for end of 2026, and 8,064.00 GBX for end of 2027. These optimistic yet credible projections are underpinned by Diploma’s robust acquisition strategy, its strong presence across diversified end markets, and positive analyst sentiment reflected in recent technical signals.
Should I sell my Diploma shares?
Holding onto Diploma shares may be a sound approach, given the company’s demonstrated resilience, consistent earnings growth, and strategic acquisitions that support long-term expansion. Diploma’s inclusion in the FTSE 100 and reliable dividend growth point to sturdy fundamentals and solid sector momentum. The company’s strong track record and clear growth strategy suggest staying invested could be appropriate for long-term investors seeking both stability and growth.
Are Diploma shares eligible for an ISA in the UK, and how are dividends taxed?
Diploma PLC shares are eligible for UK Stocks & Shares ISAs, which allow investors to shelter both capital gains and dividend income from personal tax. Dividends paid on Diploma shares within an ISA are completely tax-free, with no UK withholding tax applied. Outside an ISA, dividends may be subject to standard UK dividend tax rates above the annual allowance, depending on your individual tax circumstances.
