Down 47% and 29%! Here are the 2 worst-performing FTSE 100 dividend stocks of 2025

The FTSE 100 has been in fine double-digit form this year. According to my data provider, 71 stocks are up, and that figure would be slightly more if we included dividend payments.

However, there are a pair of FTSE 100 shares that are rooted to the bottom of the performance table. Here, I’ll look at both to see if there looks to be big turnaround potential in either of them.

WPP

Let’s start with the blue chip index’s worst-performer: WPP (LSE:WPP). Shares of the struggling ad group are down 47.8% year to date, and at their lowest level since 2009!

Investors are concerned that generative AI is in the process of disrupting parts of the advertising industry. Platforms like Facebook and TikTok are giving brands powerful tools to create, run, and optimise campaigns, potentially reducing demand for agencies.

Outgoing CEO Mark Reid has been honest about the threat, admitting that AI is “totally disrupting” the industry. This explains why the stock is trading on a forward price-to-earnings (P/E) ratio of just six, while offering a 9.2% dividend yield.

Of course, creative quality still matters, and formulating brand strategies will likely always need humans. Starting in September, WPP has a new CEO in the shape of Cindy Rose. She has experience with senior leadership positions at Microsoft. Perhaps she can turn the ship around.

Bunzl

The second-worst performing Footsie stock is Bunzl (LSE: BNZL). It’s down 29.8% so far this year.

The company supplies essential non-food items like packaging, safety equipment, and cleaning products to businesses across various sectors. Until recently, Bunzl had a reputation for being a steady compounder (often the best investments).

But in Q1, the firm’s North American business, which accounts for over half of revenue, was weak. It suffered from pricing pressure and a failed push into its own-brand products. As a result, margins weakened and management now sees underlying revenue ending broadly flat for the year.

The key risk here is that the tough US macroeconomic backdrop could worsen. Also, a planned £200m share buyback was paused after only £115m was spent.

I find this disappointing because the shares are currently trading at 2016 levels. In other words, this would be the perfect time to be putting the foot on the buyback accelerator rather than hitting the breaks.

My pick here

Given the severe challenges and uncertainty facing WPP, I don’t think the stock looks particularly attractive. It may well be a falling knife, and those can keep heading in the wrong direction for some time.

In contrast, Bunzl appears to be struggling for growth due to a soft market and macroeconomic uncertainty. I don’t think there’s fundamentally anything wrong with the business.

Importantly, Bunzl’s CEO Frank van Zanten remains confident about the medium term: “My confidence in the Group’s compounding growth strategy and resilient business model remains unchanged…the Group continues to be very well placed to navigate periods of macroeconomic uncertainty.”

After this year’s sell-off, the valuation looks cheap, with a forward P/E ratio of 13 and a 3.2% dividend yield. I think Bunzl stock is worth considering for its turnaround potential.

The post Down 47% and 29%! Here are the 2 worst-performing FTSE 100 dividend stocks of 2025 appeared first on The Motley Fool UK.

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Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Bunzl Plc and Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.