I’m always keeping an eye on which FTSE stocks have recently hit 52-week lows. After all, there might be a few diamonds in the rough that could bounce back to form in time. As it happens, I think I’ve found a couple that also have excellent records when it comes to dividend growth.

Tricky trading

I doubt a heat treatment and thermal processing services provider is on many income investors’ radars. However, FTSE 250-listed Bodycote (LSE: BOY) has a fantastic history of raising its total dividend year after year. Even a global pandemic couldn’t stop this rich run of form!

Despite this, the shares have lost all of the gains picked up from earlier in the year and now sit just below where they stood in January. A good portion of this can probably be attributed to “challenging” market conditions for its Automotive and General Industrial (AGI) division.

There’s no guarantee this won’t continue. I’m not about to say that those prized dividends are completely safe either. Indeed, cash distributions can be the first thing to be shelved (or reduced) by a company in tough times.

Ready to recover?

On a more optimistic note, broker RBC recently upgraded the company to Outperform based on its belief that growth in the engine aftermarket should help to offset issues in the supply chain. It also thinks that general industrial demand will bottom-out in the next six months or so. Should this be the case, I think existing holders can rest easy.

Out of interest, Bodycote shares currently change hands on a price-to-earnings (P/E) ratio of just 10 for FY25 (beginning in January). That’s low for the sector and the UK market as a whole.

I’m going to wait for next trading update before deciding whether to act. If last year is anything to go by, this should arrive in November.

Slowing sales

A second mid-cap hitting a 52-week low recently has been IT services specialist Computacenter (LSE: CCC).

Like Bodycote, Computacenter’s fall from grace — down 13% in 2024 — seems to be related to a dip in trading.

Revenue and adjusted pre-tax profit have been falling in 2024. So far, the company has attributed this to the “expected normalisation of Technology Sourcing volumes” following some seriously good numbers last year.

Whether things will improve markedly in the short term is open to debate. But management did say that it expects stronger momentum in the second half of FY24.

Great record

Again, I fancy this company remains unknown to most people investing for passive income. That’s despite cash returns being lifted consistently over the years.

There was one wobble in 2020 when the company resisted paying a final dividend. But I’m not about to judge Computacenter too harshly on this. At the time, many businesses were simply being cautious.

As I type, this business is expected to yield 3% in FY24. That’s pretty average for a UK stock. But at least it’s expected to be safely covered by profit.

Similar to its index peer, I’m holding back until the next trading update before deciding whether to make a move.

Fortunately, my patience won’t be tested all that much. The next statement is due on 30 October.