Are these the best FTSE 100 dividend stocks to watch in April 2026?

Best FTSE 100 dividend shares to watch

2025 was a banner year for the FTSE 100, as the index outperformed the S&P 500 for the first time in almost a decade. 2026 began well as the UK blue chip index rose above 10,000 for the first time and hit a record high close to 11,000 during February.

The strength in metals prices, and particularly in precious metals, has been a major contributor to the move, driving the heavyweight mining sector high. Merger activity initially helped too, as mining giants Rio Tinto and Glencore renewed discussions about a tie up. In the end the two companies abandoned talks in early February after failing to reach an agreement on valuation and governance.

These shares are strong yield plays, and have shown the strongest five-year dividend growth, with a dividend cover ratio of 1 or higher as of April 2026. Remember: they may not be the best investments, and the dividends and capital itself are not guaranteed.

NatWest Group (NWG)

NatWest Group PLC is positioned as a domestically focused UK bank offering a balance between income generation and strong dividend growth. Earnings have been supported by higher interest rates, which lifted net interest income, while a relatively simple business model has helped keep costs and risk contained.

Capital ratios remain strong, allowing the bank to maintain dividends alongside buybacks. At 5.5%, NatWest offers the highest yield on this list. Its high dividend cover of 2.13, the highest on this list, indicates a reasonable buffer against earnings volatility, and a sign of financial strength.

Over time, interest rate cuts could reduce margins, placing more emphasis on volume growth and cost discipline. Because of the war in Iran, oil prices are expected to remain elevated, though, which in turn is expected to lead to higher UK inflation and quashed Bank of England (BoE) rate cut hopes for 2026. Credit quality and the health of the UK economy also remain important variables, given NatWest's concentration in retail and commercial banking.

The gradual reduction of government ownership has improved flexibility but does not materially change the underlying investment case. Overall, NatWest fits a yield-plus-growth approach through stable cash generation rather than rapid expansion.

NatWest Group weekly candlestick chart

British American Tobacco (BATS)

British American Tobacco is a global tobacco company with established brands, extensive distribution and a broad international footprint, providing it with scale, resilient cash generation and a long-standing reputation as a reliable dividend payer. As a result, it is widely viewed as a classic income or dividend stock, often favoured by investors seeking steady yield rather than rapid capital growth.

With dividend of 5.5% and cover of around 1.45 times, the payout appears more comfortable than many other high-yield stocks, suggesting the dividend is currently well supported by earnings. Even so, investors should keep an eye on regulatory developments and the company’s transition towards next-generation products such as vapes and heated tobacco, which will be key to sustaining long-term revenue streams.

Overall, British American Tobacco remains one of the more established high-yield dividend plays in the UK market, appealing to income-focused investors, although the sector’s structural headwinds mean it should be viewed as a stable cash generator rather than a high-growth opportunity.

TipRanks has a Smart Score of ‘8 Outperform’ and a ‘buy’ rating for BATS (as of 11/03/2026).

BATS weekly candlestick chart

BATS TipRanks Smart Score chart

DCC (DCC)

DCC is a leading Irish diversified international sales, marketing and support services group operating across sectors such as energy, healthcare and technology, with a broad geographic footprint spanning Europe and North America. Its scale, resilient business model and steady cash generation have helped the company build a reputation as a dependable UK dividend payer, currently offering a yield of around 4.4%, which places it among the more attractive income opportunities in the FTSE 100.

The dividend yield partly reflects the group’s mature, cash-generative operations, particularly in its energy distribution segment, which provides relatively predictable earnings through long-term customer relationships and essential fuel supply. This dependable revenue base allows DCC to return a significant portion of profits to shareholders, while still reinvesting in acquisitions and operational expansion.

However, the company’s dividend cover of roughly 1.02 times suggests that a large share of earnings is already being paid out, leaving a narrower buffer than some income-focused investors might prefer. While this does not necessarily signal immediate dividend risk, it does mean the sustainability of payouts depends on maintaining stable earnings and disciplined capital allocation.

DCC’s long-term strategy of acquisitive growth and operational efficiency has historically supported both earnings and dividend progression, and the company has a track record of gradually increasing shareholder returns. Even so, investors should monitor factors such as energy market dynamics, margin pressures and integration risks from acquisitions, which could influence future cash flow.

DCC has a TipRanks Smart Score of ‘6 Neutral’ and a ‘buy’ rating (as of 11/03/2026).

DCC weekly candlestick chart

DCC TipRanks Smart Score chart

Rio Tinto (RIO) 

Rio Tinto is one of the world’s largest mining companies, producing key commodities such as iron ore, copper and aluminium that underpin global industrial activity. Its scale, strong margins and ability to generate substantial free cash flow during commodity upcycles have made it a long-standing high-yield dividend stock within the FTSE 100. At present, the shares offer a dividend yield of around 4.2%, making them attractive for investors seeking income from the resources sector.

A key strength supporting this yield is Rio Tinto’s dividend cover of roughly 1.53 times, which suggests the payout is reasonably well supported by earnings compared with many high-yield shares. The company’s iron ore operations in Australia remain particularly profitable, providing a significant cash engine that allows Rio to distribute large dividends while still investing in future projects such as copper and lithium.

However, Rio Tinto’s five-year dividend per share growth of around –3.3% may initially appear disappointing. This decline largely reflects the cyclical nature of the mining sector and the fact that the company paid exceptionally large dividends during the commodity boom following the pandemic. As commodity prices have normalised, dividend levels have also moderated.

Another important factor is the strong performance of Rio Tinto’s share price over recent years, which has reduced the apparent pace of dividend growth when viewed over a longer period. A rising share price can make dividend growth appear weaker on a percentage basis even when payouts remain substantial in absolute terms.

Overall, Rio Tinto remains a compelling UK income stock, combining a solid yield with relatively comfortable dividend cover and strong cash generation. While dividend growth may fluctuate alongside commodity cycles, the company’s scale, high-quality assets and disciplined capital returns policy help support its reputation as a dependable dividend payer in the FTSE 100.

TipRanks gives Rio Tinto a Smart Score of ‘5 Neutral’ and a ‘hold’ rating (as of 11/03/2026).

Rio Tinto weekly candlestick chart

Rio Tinto TipRanks Smart Score chart

Whitbread (WTB)

Whitbread offers a blend of income and cyclical growth potential through its Premier Inn hotel business. Performance has strengthened as travel demand has normalised, enabling the company to reinstate dividends and gradually rebuild payouts following the reductions made during the pandemic.

The current 3.9% dividend yield places the shares in the upper half of comparable UK income stocks, reflecting a balance between dependable income and longer-term growth prospects. Dividend cover of around 1.48 times provides scope for gradual dividend increases while still allowing the company to invest in the continued expansion of Premier Inn, particularly in the German market.

In the UK, Whitbread benefits from strong brand recognition and significant scale, though its earnings remain tied to the economic cycle. Consumer spending trends and rising operating costs, especially labour expenses, can influence profitability, meaning a prolonged economic slowdown could weigh on both leisure and corporate travel demand.

Over the longer term, improving efficiency and easing cost pressures could help support further dividend progression. However, shareholder returns are likely to move in line with broader economic conditions, meaning Whitbread can add useful diversification to an income-focused portfolio by providing exposure to the leisure and hospitality sector.

According to TipRanks Whitbread has a Smart Score of ‘4 Neutral’ but a ‘buy’ rating (as of 11/03/2026).

Whitbread weekly candlestick chart

Whitbread TipRanks Smart Score chart

How to invest or trade in FTSE 100 dividend stocks

1. Learn more about FTSE 100 dividend stocks
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4. Search for your chosen stock on our web platform or app
5. Make your investment or trade

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Trading takes a more short-term view where you look to take advantage of smaller market movements. It involves leverage, which allows you to take a position that’s larger than your initial deposit. This means market movements are magnified, and you could gain or lose money faster than expected.

For example, if you trade with 5:1 leverage, you could place a £1000 deposit and manage a £5000 position. A 10% increase or decrease in the market could result in 50% profit or loss on your initial margin.

Negative balance protection will prevent you from losing more than your initial deposit, but market movements can be fast and unpredictable, and you could lose your full deposit.