Are these the best UK shares to watch in March 2026?

In focus for March

2026 has started well for UK shares. Indeed, it has started well for stock markets outside of the US, which is suffering its worst performance relative to the rest of the world in over two decades. The FTSE 100 has been on a strong run, clearing 10,000 for the first time and making further gains. As we look into the final month of the first quarter, UK shares remain cheaper than their US counterparts at the index level, providing a haven for investors from the regular outbreaks of concern about high US valuations.

Best UK shares to watch

Considering this theme, here are five shares that stand out in March. These dividend, growth and value shares have been selected from recent market developments. Always do your own research. Past performance is not a guide to future performance.

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1. HSBC
2. Shell
3. BAE Systems
4. Next
5. Fresnillo

Top dividend stocks

HSBC (LON:HSBA)

HSBC remains one of the UK market’s core income names, supported by strong capital ratios and exposure to higher interest margins in Asia and the US. The bank has continued to generate robust returns and has combined dividends with periodic share buybacks, underlining management’s focus on shareholder distributions.

While net interest income may moderate as rates gradually fall, HSBC’s geographic diversification and disciplined cost control provide resilience. For income-focused investors, the combination of yield and capital strength remains central to the appeal.

Dividend yield: 6.4%

Dividend cover ratio: 1.4

HSBC weekly candlestick chart

Shell (LON:SHEL)

Shell continues to offer a compelling dividend profile backed by strong free cash flow generation. Elevated energy prices in recent years have strengthened the balance sheet and enabled consistent shareholder returns through dividends and buybacks.

Although oil prices remain volatile, Shell’s integrated model across upstream, LNG and trading provides diversification. For investors seeking income with exposure to global energy markets, Shell remains a key FTSE 100 option.

Dividend yield: 3.5%

Dividend cover ratio: 2.2

Shell weekly candlestick chart

Top growth stocks

BAE Systems (LON:BA)

BAE Systems continues to benefit from sustained increases in global defence spending. Rising geopolitical tensions and long-term procurement programmes support strong order books and multi-year revenue visibility.

With exposure to submarines, combat air, cyber and advanced weapons systems, BAE is positioned in structurally supported markets. Earnings momentum and cash generation underpin the investment case for continued growth.

Dividend yield: 1.7%

Dividend cover ratio: 1.9

BAE Systems weekly candlestick chart

Next (LON:NXT)

Next has emerged as one of the UK retail sector’s most consistent performers. Through disciplined stock management, strong online execution and careful cost control, the company has repeatedly upgraded profit guidance.

Its capital-light Total Platform model, which provides services to third-party brands, offers an additional structural growth driver beyond core retail sales. For investors seeking exposure to a well-managed UK consumer name, Next remains notable.

Dividend yield: 1.9%

Dividend cover ratio: 2.74

Next weekly candlestick chart

Top value stocks

Fresnillo (LON:FRES)

Fresnillo offers exposure to precious metals at a time when gold and silver prices remain elevated amid geopolitical uncertainty and shifting interest rate expectations. Its categorisation as a 'value’ stock might surprise, but the company still trades well below its five-year average PE ratio. 

While operational performance in mining can be volatile, higher bullion prices have supported cash flow and improved sentiment towards the sector. For investors seeking cyclical exposure with defensive characteristics during periods of market stress, Fresnillo may offer value if metal prices remain firm.

Dividend yield: 0.9%

Dividend cover ratio: 1.3

Fresnillo weekly candlestick chart

How to invest or trade in UK shares with us

1. Learn more about UK shares
2. Decide whether you want to trade or invest
3. Open an account with us or practise on a demo
4. Search for your chosen share on our web platform or app
5. Make your investment or trade

You can gain exposure to UK shares either by investing directly in the underlying stock or by trading price movements using derivatives such as CFDs or spread bets. Investors typically focus on long-term fundamentals and dividends, while traders may seek to profit from shorter-term volatility.

Before investing, consider your financial objectives, risk tolerance and time horizon.

Top shares to watch summed up

March 2026 presents a backdrop of modest UK growth, gradual rate cuts and elevated geopolitical uncertainty. In this environment, a blend of reliable dividend payers, structurally supported growth companies and selective value opportunities may help balance risk and return.

HSBC and Shell offer income strength, BAE Systems and Next provide earnings momentum, while Fresnillo offers exposure to precious metals during uncertain times.