Are these the best yielding dividend stocks in the UK?
Dividend—paying companies mean a reliable source of returns and often represent future growth prospects for investors. We list some of the UK’s top dividend stocks with high dividend yields and how you can buy them.
How to trade or invest in dividend stocks
- Learn more about dividend stocks
- Decide whether you want to invest or trade
- Open an account
- Search for your chosen dividend paying stock on our app or web platform
- Make your investment or trade
When you invest, you buy and hold stocks over an extended period of time with the view that they’ll increase in value. By holding dividend stocks and either reinvesting, or keeping the dividends, it pays out, you can build wealth overtime and earn both a growth and passive income.
Trading a more short-term view looks to take advantage of smaller market movements. It uses leverage which enables you to take a position much larger than your initial deposit.
For example, with 5:1 leverage, you could open a £5,000 position while only depositing £1,000 as ‘margin’. A 10% market movement could result in a 50% gain or loss on your deposited margin.
It’s worth noting however that market movements can be unpredictable and whilst negative balance protection prevents you from losing more than your initial deposit, you could still lose the full amount you put in.
Best UK dividend yielding shares to watch
What are some of the best dividend-yielding shares worth watching? Here are some of the shares we think are worth a closer look. Note that these stocks are among the highest yielding UK shares, some like Aviva (AV), British American Tobacco (BATS) and M&G (MNG) with a dividend cover ratio of 1 or higher. Past performance is not a guide to future performance. Always do your own research.
| Share | Ticker | Dividend yield (%) | Dividend cover |
| WPP | WPP | ~10.55% | 0.54 |
| Taylor Wimpey | TW | ~9.20% | Below 1 |
| Legal & General Group | LGEN | ~9.00% | 0.30 |
| Phoenix Group Holdings | PHNX | ~7.95% | Below 1 |
| M&G | MNG | ~7.50% | 1.51 |
| Aviva | AV | ~5.65% | 1.08 |
| British American Tobacco Company (BATS) | BTI | ~5.55% | 1.72 |
| BP | BP | ~5.40% | 1.72 |
WPP plc (WPP) — dividend yield: ~10.55%
Dividend cover ratio: 0.54
Most recent dividend: 7.50 pence
Latest dividend payment date: 3 November 2025
WPP PLC is one of the global largest advertising and communications services companies, helping major brands with marketing, media buying and digital transformation.
Its yield arises partly because of its growth and creative/advertising spend which are cyclical and linked to macro conditions.
The high dividend yield of over 10% is supported by its global footprint and cash generation but may face headwinds if marketing budgets tighten in economic downturns.
For income investors seeking yield, WPP offers global scale but with some cyclicality risk in the payout. Investors should therefore keep a close eye on the weak dividend cover ratio – since it is below 1 - and assess whether the company can maintain sufficient earnings cover amid ongoing macro and regulatory uncertainty.
According to TipRanks WPP has a Smart Score of ‘7 Neutral’ and a ‘hold’ rating (as of 26/11/2025).
WPP weekly candlestick chart
WPP TipRanks Smart Score chart
Taylor Wimpey plc (TW) — dividend yield: ~9.20%
Dividend cover ratio: Below 1
Most recent dividend: 4.67 pence
Latest dividend payment date: 14 November 2025
Taylor Wimpey PLC is a major UK house-builder operating across Britain, delivering new homes in a cyclical market influenced by interest rates, mortgage demand and regulation.
The high yield comes from our view of current house-building cycle and pressure on volumes — so the dividend carries higher risk relative to more resilient sectors.
While expansion or share-buyback flexibility may support the payout, a downturn in UK housing markets or cost inflation could threaten the dividend.
Investors should treat this as a higher-risk income play rather than a rock-solid yield pick.
TipRanks has a Smart Score of ‘6 Neutral’ and a ‘hold’ rating for Taylor Wimpey (as of 26/11/2025).
Taylor Wimpey weekly candlestick chart
Taylor Wimpey TipRanks Smart Score chart
Legal & General Group plc (LGEN) — dividend yield: ~9.00%
Dividend cover ratio: 0.30
Most recent dividend: 6.12 pence
Latest dividend payment date: 26 September 2025
Legal & General Group PLC is a major UK insurance and asset-management business, offering retirement solutions, investment funds and conventional insurance products.
Its high current yield stems in part from recent pressure on margins and market headwinds in the UK savings business. The payout remains generous but a very high yield suggests elevated risk if conditions deteriorate or investment returns weaken.
For its full-year earnings in December 2024, Legal & General had earnings per share (EPS) of 19.38 pence. Since its dividend cover ratio of 0.30 is below 1, it means the company earned less than it paid out in dividends which is unsustainable.
Investors should thus watch the payout ratio closely and the company’s ability to sustain earnings cover given macro and regulatory uncertainties.
TipRanks has a Smart Score of ‘8 Outperform’ and a ‘buy’ rating for Legal & General (as of 26/11/2025).
Legal & General weekly candlestick chart
Legal & General TipRanks Smart Score chart
Phoenix Group Holdings plc (PHNX) — dividend yield: ~7.95%
Dividend cover ratio: Below 1
Most recent dividend: 27.35 pence
Latest dividend payment date: 30 October 2025
Phoenix Group Holdings PLC specialises in life-and-pension consolidation and management of legacy life businesses in the UK and Europe, giving it a cash-generation focus.
Its yield is attractive, but earnings cover has been under strain and some recent payout ratios indicate caution is warranted.
The company’s business model offers steady cashflow but is sensitive to interest rates, regulatory capital and mortality & longevity assumptions. Given that, while the yield is high, the sustainability of future payouts may be less secure than for more diversified peers.
According to TipRanks Phoenix Group has a Smart Score of ‘8 Outperform’ and a ‘hold’ rating (as of 26/11/2025).
Phoenix Group weekly candlestick chart
Phoenix Group Holdings TipRanks Smart Score chart
M&G plc (MNG) — dividend yield: ~7.50%
Dividend cover ratio: 1.51
Most recent dividend: 6.70 pence
Latest dividend payment date: 17 October 2025
M&G PLC is an asset manager and insurer serving UK and international clients, with exposure to savings, investment funds and credit assets.
The yield looks attractive, but the firm is exposed to asset-markets, fund flows and interest-rate headwinds which might impact earnings and thus the dividend.
It has a decent history of returning cash but the payout is more vulnerable in stress periods than more defensive businesses.
So while the income is appealing, investors should monitor fund performance, outflows and investment returns carefully.
According to TipRanks M&G has a Smart Score of ‘7 Neutral’ but a ‘strong buy’ rating (as of 26/11/2025).
M&G weekly candlestick chart
M&G TipRanks Smart Score chart
Aviva plc (AV) — dividend yield: ~5.65%
Dividend cover ratio: 1.08
Most recent dividend: 13.10 pence
Last dividend payment date: 16 October 2025
Aviva PLC is a large UK-based insurer offering life, general insurance and asset-management services across multiple markets, with good diversification.
Its payout is more modest than some of the extreme yield names, which may offer somewhat less risk of a surprise cut. That said, insurance remains exposed to underwriting cycles, investment returns, regulatory capital and claims inflation — all of which can impact the dividend.
For income investors, Aviva delivers a credible yield with somewhat better downside cushion than smaller niche names, but still warrants monitoring.
TipRanks has a Smart Score of ‘10 Outperform’ and a ‘strong buy’ rating for Aviva (as of 26/11/2025).
Aviva weekly candlestick chart
Aviva TipRanks Smart Score chart
British American Tobacco plc (BATS) — dividend yield: ~5.55%
Dividend cover ratio: 1.72
Most recent dividend: 60.06 pence
Latest dividend payment date: 4 February 2025
British American Tobacco (BATS) PLC is a global tobacco business with brands, products and distribution across many markets, giving it size, cash-flow and dividend pedigree.
The high yield reflects both its strong cash-flow generation and some investor caution about regulation, litigation and shifting consumer trends.
Its high 1.72 dividend cover is more comfortable than that of many high-yielders, but investors still need to monitor regulatory risk and shifting product mixes (e-cigarettes, heated tobacco). Overall it’s one of the more stable high yield UK options but not without structural headwinds.
TipRanks has a Smart Score of ‘9 Outperform’ and a ‘buy’ rating for BATS (as of 26/11/2025).
BATS weekly candlestick chart
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BATS TipRanks Smart Score chart
BP plc (BP) — dividend yield: ~5.40%
Dividend cover ratio: 1.72
Most recent dividend: 8.32 pence
Latest dividend payment date: 19 December 2025
BP PLC is one of the major global integrated oil and gas companies, with upstream, downstream and low-carbon efforts, giving it diversified exposure and cash-flow potential.
The yield reflects current commodity and energy-cycle conditions, and while earnings are benefiting from oil/gas prices, volatility remains.
The dividend is more moderate compared with ultra-high yield names, which may give it somewhat greater stability, though the business remains exposed to regulatory, environmental and energy-transition risks.
For income-focused investors, BP offers a balance of yield and exposure but isn’t purely “safe” in a structural sense.
According to TipRanks BP has a Smart Score of ‘10 Outperform’ and a ‘buy’ rating (as of 26/11/2025).
BP weekly candlestick chart
BP TipRanks Smart Score chart
How to invest in best dividend stocks in the UK
You can invest in the UK’s top dividend stocks with us, from as little as £3 commission. Here’s how to get started with share dealing:
- Create an account with us: you’ll get access to over 13,000 stocks, 2000 ETFs, investment trusts and more
- Buy shares: once you’ve chosen your shares, purchase them on your share dealing account and monitor your investment
- You can also trade shares using spread bets or CFDs, which means you won’t own the underlying asset, but you can speculate on upward or downward share price movements
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Dividend stock investing strategy: what you need to know
Dividends are often viewed as a crucial element of a strategy, providing a regular stream of income, or used to buy more shares in a company (a process known as reinvesting). The difference in an investment’s return based on capital appreciation only can be drastically different from that including the returns from dividends.
However, dividends shouldn’t be the sole reason for investing in a company, but rather a bonus element to the key requirement of selecting a company with strong fundamentals and or a bullish price trend. It’s also important not to pick companies based on dividend yield alone, since dividends can be reduced or increased.
Usually, a well-managed company will look to pay dividends as a way of demonstrating its financial strength and attractiveness for investors, but there’s a risk that companies may pay out dividends from cash reserves rather than from profits.
A very high dividend yield, usually above 7%, could be a red flag for investors. Usually, dividend yields increase sharply when a share price drops, since the dividend yield is calculated as: (dividend per share divided by share price) x 100. Such drops prompt a sudden increase in the yield without increasing the amount paid out in dividends.
Companies that see sharp increases in yields are often tempted to cut the dividend as a result, since the yield can still be kept to an attractive level (2% to 3%), but money can be saved in terms of reduced dividend pay-outs.
Choosing dividend-paying companies for a potential investment thus requires an extra level of work beyond looking at the financial statements or examining the price chart. It’ll mean investors must look at the level of dividends, their growth (or otherwise) and how these are funded. In particular, the dividend coverage ratio is key.
This is calculated by dividing net profits by the dividend to produce a ratio. Above 1 signals that the dividend is at least covered fully by profits and that existing cash reserves aren’t being used to pay dividends. Below 1 is also a potential red flag, since it shows profits don’t cover the pay-out and thus cash reserves are employed to maintain the dividend. This runs the risk of a dividend cut or cancellation of the entire payout.
How to identify the UK’s best dividend stocks
There are a few steps you can follow to identify the UK’s best dividend stocks:
Use a market screener
You can use online resources such as a market screener to look for companies with a proven track record of delivering dividends. A screener also makes it easy to compare high-yield dividend stocks against each other. This way, you can choose the stocks that best suit your risk profile.
Analyse past dividend payments
By analysing past dividend payments, you can get a sense of how the company prioritises them. Some companies may be so committed that they dip into cash reserves to keep investors satisfied, while others do the opposite and use dividend funds to pay for day-to-day activities.
If past dividend payments were very high and earnings were low, it could be a red flag. That’s because a company that spends too much on dividends maybe harming future growth. You can use ratios such as the dividend coverage ratio to determine the health of a company’s dividends.
Learn more about the company
Dividends are affected by several factors, so it’s important to learn as much about the company as possible. This includes share price activity, fundamentals and all corporate actions. These factors will help you establish a company’s overall health, as well as the prospects for dividend payments.
Read more about fundamental analysis
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