Key Highlights

  • Daniel Thwaites PLC (LSE:THW) offers a Dividend Yield of 3.75%, with its shares quoted on London's Aquis Stock Exchange Growth Market.
  • The total dividend for the year to 31 March 2026 rose to 3.75p per share from 3.50p.
  • Turnover grew 5% to £127.0 million and operating profit before property disposals rose 10% to £13.0 million.
  • An Interim Dividend of 0.95p was paid in January 2026, followed by a final of 2.8p paid on 31 July 2026.
  • The company sold six pubs and four surplus properties for £3.6 million during the year.

A Family Brewer With a Long History

Daniel Thwaites PLC (LSE:THW) is one of the UK's longest-established family brewers, founded in 1807 in Blackburn, Lancashire. Today the Business operates pubs, inns and hotels across the North of England, alongside its brewing heritage. Its properties are positioned towards experience and quality, an approach that the board says is resonating with customers.

The shares are quoted on the Aquis Stock Exchange Growth Market in London rather than the Main Market, which means they are thinly traded and less widely followed. With a dividend yield of 3.75%, Thwaites sits within the 2% to 4% range and has been delivering steady dividend growth.

FY26 Results: A Very Strong Year

On 17 June 2026, Thwaites reported results for the year ended 31 March 2026. Turnover grew 5% to £127.0 million from £120.6 million. Operating profit before property disposals rose 10% to £13.0 million. The Chairman described the performance as very strong in challenging conditions, noting that when conditions align, the company's properties trade very well.

The group was named AA Hotel Group of the Year, recognising the quality of its hotel and inn estate. Capital Expenditure for the year was £13.4 million, reflecting continued Investment in the property portfolio.

Dividend Increase

The board recommended a final dividend of 2.8p per share, up from 2.6p, which was paid on 31 July 2026 to shareholders who held shares before the ex-dividend date of 2 July. Together with the interim dividend of 0.95p paid in January, up from 0.9p, the total dividend for the year was 3.75p, compared with 3.50p in the previous year.

The board has said it will keep the level of dividend under review, continuing to assess the level of future dividends in light of company performance.

Dividend Track Record

Thwaites suspended its dividend during the Pandemic but has since rebuilt it steadily. The total dividend has risen steadily from 2.95p for the year to March 2023 to 3.50p for 2025 and 3.75p for 2026. Interim Earnings Per Share for the six months to September 2025 rose 9% to 11.3p, indicating that the dividend is well covered by earnings.

Cash Flow and Property Disposals

Thwaites has been actively managing its estate, selling properties that no longer meet its requirements. During the year, it sold six pubs and four surplus ancillary properties for total proceeds of £3.6 million, up from £2.1 million in the previous year. These disposals help fund investment in higher-quality sites and support the balance sheet.

The fall in Bank of England Base Rate from 4.5% to 3.75% over the financial year also eased financing costs, which is helpful for a property-intensive business.

Market Sentiment

Because of its listing on Aquis, Thwaites receives limited coverage from mainstream financial media. Discussion is concentrated among value investors on specialist forums and social platforms, who highlight the company's freehold property base, family control and long-term focus. Wide bid-offer spreads and low Liquidity mean the share price can move sharply on small trades.

Risks to the Dividend

Key risks include higher employment costs, including increases to National Insurance and minimum wage, weak consumer confidence, energy costs and weather-dependent trading. The hospitality sector faces ongoing tax and cost pressures. Limited liquidity in the shares is also an important consideration for investors.

What to Watch Next

The next update will be the interim results for the six months to 30 September 2026, typically published in November, when the board will set the interim dividend. Investors will look for another modest increase from 0.95p, in line with the steady progression since the pandemic. Trading over the summer, the performance of the hotel and inn estate and the outcome of further property disposals will shape the outlook for the final dividend in 2027. Cost pressures from the latest Budget will also be closely watched.

Verdict: Is the 3.75% Yield Sustainable?

Daniel Thwaites PLC (LSE:THW) offers a 3.75% dividend yield that appears sustainable, supported by growing operating profits, strong earnings cover and a valuable freehold property estate. Steady dividend increases since the pandemic signal confidence. However, its Aquis listing and low liquidity make it a niche holding. For patient investors seeking exposure to a quality northern hospitality business, Thwaites offers a modest but growing income.