The London Stock Exchange is teeming with dividend stocks that pay attractive levels of passive income. And though blue chips like Lloyds and Legal & General often hog the limelight, there are some cracking little income stocks outside the FTSE 100.
Here are three that City analysts expect to be trading at least 41% above their current share prices by this time next year. And while such forecasts and individual dividends can’t be relied upon, these stocks do offer decent passive income potential.
4imprint
4imprint (LSE:FOUR) is a direct marketer of promotional products, helping businesses and organisations put their logo on items like T-shirts, pens, mugs, and water bottles.
While a niche market, 4imprint is a leader in North America, which helped drive strong growth for years. However, the FTSE 250 firm has recently been hit by slowing orders due to macroeconomic challenges and tariff uncertainty.
Revenue and pre-tax profit both fell 2% last year, to $1.35bn and $151m respectively. And management has warned that margins may take a slight hit in 2026, sending the stock down nearly 10% year to date.
However, this is still a very well-run company, with a highly cash-generative business model. It ended 2025 with cash and bank deposits of $132.8m, while maintaining the dividend at the same level as 2024.
Currently, the stock offers a 5.16% dividend yield and is trading 41% below an average broker price target of 4,930p. It’s currently out of favour due to macroeconomic uncertainty, but it could snap back sharply if and when conditions improve.
Keystone Law
Keystone Law (LSE:KEYS) is a tech-enabled law firm that uses a platform model rather than a traditional partnership structure. It allows lawyers to work for themselves, and last year added 61 new senior lawyers, taking the group’s total number of fee earners to 654.
In February, the £160m company issued a trading update for the fiscal year ending 31 January. It expects to report revenue of roughly £109m, up 11% year on year, and adjusted pre-tax profits of £14.4m (up 20%).
The biggest risk I see here is a sudden downturn in the UK economy, which remains fragile and badly exposed to a spike in global energy prices. This could see lawyer billings drop.
Longer term though, I’m bullish on Keystone Law, as it operates quite a disruptive model in the legal industry and is attracting top talent. The stock currently sports a forecast dividend yield of 4.6%, while trading 79% below analysts’ price target of 906p.
Ramsdens
Finally, Ramsdens (LSE:RFX) is a £117m high street retailer offering foreign currency exchange and pawnbroking services. The share price has performed very strongly, surging 71% higher over the past year.
This is due to the rocketing gold price, which is encouraging more people to cash in their jewellery. Elevated precious metal prices are expected to help drive pre-tax profits nearly 30% higher to £21m in the year to 30 September 2026.
Of course, it’s worth pointing out that the share price has recently been responding to the gold price, so a fall in the yellow metal is a risk. However, Ramsdens plans to open between eight and 12 new stores this year, so it’s very much in growth mode right now.
The forward yield here is 4.4%, with a 550p share price target (52% higher).
