In this article, we will discuss the 10 UK Stocks with the Highest Dividends.
United Kingdom equities have shown wild swings in 2026 on the Iran war, pushing inflation high and rattling investors over the prospects of low interest rates. The overall equity market has underperformed its US counterparts, as political uncertainty in the UK has also weighed on investor sentiment.
The country’s main stock index, the FTSE 100 index, is up by about 5% year to date, underperforming the 9% gain for the S&P 500. Amid the underperformance, the UK equity market has seen a surge in merger and acquisition activity as private equity and corporate buyers take advantage of discounted valuations to acquire British companies.
Likewise, the underperformance has resulted in low valuations that investors are also taking advantage of. UK equities also stand out for their attractive dividend yields. With overall earnings projected to increase by 11% annually in the coming years, UK dividend stocks stand to offer reliable passive income on the side.
While the UK inflation has risen significantly to about 3.5%, the highest level in over a year, higher energy costs, water bills, and council tax have come into play. Likewise, investors are having to contend with an environment marked by global economic uncertainties. This all makes investing in dividend stocks an important way to generate income.
Some of the best UK Stocks with the highest dividends offer high payout ratios and trade at a discount relative to their fair value.
Copyright: jirsak / 123RF Stock Photo
Our Methodology
To compile a list of 10 UK stocks with the highest dividends, we used a Finviz screener to identify UK stocks listed in the US. Then we trimmed the list using Google Finance to select stocks with dividend yields above 4% as of June 16, 2026. We also detailed the number of hedge funds that hold stakes in them in Q1 2026. Finally, we ranked the stocks in ascending order based on their dividend yield.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
UK Stocks with the Highest Dividends
10. National Grid plc (NYSE:NGG)
Dividend Yield: 4.01%
Number of Hedge Fund Holders: 30
National Grid plc (NYSE:NGG) is one of the UK’s highest-dividend stocks. The company has paid dividends for over two decades and pays twice a year. The stock boasts of a quarterly dividend of $0.81 a share and a dividend yield of 4.01%.
On June 4, National Grid plc (NYSE:NGG) announced the scrip dividend reference price for its 2025/26 final dividend. The reference price for ordinary shareholders was set at 1,197.70 pence, while American Depositary Receipt holders received a scrip ADR reference price of $80.5453.
The company had earlier declared a final dividend of 32.14 pence per ordinary share and $2.1738 per ADR, with a record date of May 29. Shareholders must make their scrip election by June 18, while ADR holders have until June 15. The final dividend payment date is scheduled for July 23.
National Grid noted that a $0.02 per ADR fee applies to cash distributions but not to ADRs received through the scrip dividend. The scheme allows investors to opt for new shares instead of cash, with full terms available via the company’s website and Equiniti.
National Grid plc (NYSE:NGG) is an investor-owned energy company that owns and operates the high-voltage electricity transmission systems and local gas/electricity distribution networks across parts of the United States (primarily New York and Massachusetts) and the United Kingdom (specifically England and Wales).
9. HSBC Holdings plc (NYSE:HSBC)
Dividend Yield: 4.08%
Number of Hedge Fund Holders: 18
HSBC Holdings plc (NYSE:HSBC) is one of the UK’s highest-dividend stocks. The company has successfully paid dividends for 27 consecutive years. While the stock pays a quarterly dividend of $0.94 a share, it offers a dividend yield of 4.08%.
On May 5, the company’s board approved an interim dividend payment of $0.10 per ordinary share. The dividend is to be paid on June 26 to shareholders of record as of May 15, 2026.
Amid its push for dividend payments, HSBC Holdings plc (NYSE:HSBC) on June 17 announced a multi‑year partnership with Alphabet’s Google Cloud, aimed at strengthening the British bank’s artificial intelligence capabilities, Reuters reported. The financial services company is looking to integrate AI across its products and services globally. The company plans to enable more than 200 new AI HSBC use cases.
The integration will also help accelerate innovation across areas of hyper-personalized advice and financial crime risk management. HSBC is to work with Google Cloud and Google DeepMind engineering teams on new AI-powered tools and programs. It will also gain access to the latest agentic AI capabilities, including Gemini models.
HSBC Holdings plc (NYSE:HSBC) is one of the world’s largest global banking and financial services organizations, serving over 40 million personal, wealth, and corporate customers across 50+ countries and territories. It operates as a universal bank, providing a wide array of financial products and services from day-to-day retail banking to international trade finance.
8. Diageo plc (NYSE:DEO)
Dividend Yield: 4.13%
Number of Hedge Fund Holders: 35
Diageo PLC (NYSE:DEO) is one of the UK’s highest-dividend stocks. The company has maintained a long-standing track record of paying dividends for over three decades, with a quarterly dividend of $0.83 a share and a dividend yield of about 4.13%.
On June 5, Diageo PLC’s Indian business unit, United Spirits, announced plans to close a manufacturing unit in Venkateshwara Nagara, India, by the end of August. It builds on United Spirits’ shutdown of the Hyderabad manufacturing unit in Nacharam last year.
The facility the company is closing generated $63.1 million in revenues in the financial year 2025 to 2026, accounting for 2% of the company’s revenue. The shutdown is part of a broader multiyear supply chain agility program approved in 2023. It is also in response to rising operational costs and changing market dynamics.
Similarly, United Spirits has reached an agreement to sell a production site in the eastern state of Odisha to local business Cupid Breweries & Distilleries. The sale comes as the Diageo unit continues to reshape its manufacturing network in India.
Diageo plc (NYSE:DEO) is a British multinational company that manufactures, distributes, and markets a massive global portfolio of premium alcoholic beverages, including spirits, beer, and non-alcoholic alternatives. The company’s operations encompass global distilling, brewing, and packaging to serve markets in over 180 countries.
7. BP p.l.c. (NYSE:BP)
Dividend Yield: 4.81%
Number of Hedge Fund Holders: 49
BP p.l.c. (NYSE:BP) It is one of the UK’s highest-dividend stocks, having paid dividends for over 50 years. The company currently pays a quarterly dividend of $0.4992/ADS and has a dividend yield of 4.81%, as of June 16.
On June 11, RBC Capital reiterated an Outperform rating on BP Plc. (NYSE:BP). The research firm remains confident about the company’s long-term outlook, citing a more supportive macro environment. The firm expects the stock to outperform its peers, even as investors seek clarity on the medium-term growth ambitions and the balance-sheet end goal.
Meanwhile, Reuters reports that BP Plc has opened talks about a potential sale of stakes in two of its Gulf of Mexico projects. The company has been eyeing the sale of minority stakes in the Kaskida and Tiber projects for more than a year, transactions expected to unlock billions of dollars for the company. It joins a string of oil and gas companies that are increasingly selling minority stakes to free up capital invested in them.
BP p.l.c. (NYSE:BP) is a global integrated energy company. It operates across the entire energy value chain, from exploring for and producing oil and gas to trading energy and delivering finished products like fuels, lubricants, and convenience items to consumers worldwide.
6. NatWest Group plc (NYSE:NWG)
Dividend Yield: 5.22%
Number of Hedge Fund Holders: 21
NatWest Group plc (NYSE:NWG) is one of the UK’s highest-dividend stocks. The company pays a quarterly dividend of about $0.22 a share, translating to a dividend yield of 5.22%. Over the past five years, its dividend payout has increased by about 58%.
Earlier on May 27, NatWest Group entered into a strategic partnership with Cleareye.ai, a specialist in artificial intelligence solutions. The company is looking to modernize its trade operations and enhance its financial crisis management capabilities. The partnership also aligns with a wider transformation strategy focused on delivering superior customer service.
Consequently, Natwest Group is poised to implement ClearTrade, an AI-powered platform to automate the extraction and classification of critical data from complex trade documents. The solution will also streamline document workflows while enabling the company to perform robust compliance and Trade-Based Money Laundering checks.
According to Michael Gilham, Trade Product Lead, Commercial and Institutional at NatWest, the partnership will help customers trade in foreign markets more quickly and with greater certainty. It will also help the company deliver personalized and productive service.
NatWest Group plc (NYSE:NWG) is a UK-focused banking and financial services company that serves over 20 million customers. Operating through brands like NatWest, Royal Bank of Scotland (RBS), Ulster Bank NI, and Coutts, the group provides retail banking, commercial and institutional services, and wealth management.
5. WPP Plc (NYSE:WPP)
Dividend Yield: 5.30%
Number of Hedge Fund Holders: 9
WPP Plc (NYSE:WPP) is one of the UK stocks with the highest dividends. The company has been paying dividends for over three decades. Currently, it pays a quarterly dividend of about $0.25 a share, translating to a dividend yield of about 5.57%.
On June 9, Berenberg initiated coverage of WPP Plc with a Buy rating and a £405 price target. The research firm remains bullish on the stock despite the company losing ground in advertising to companies that pushed harder into data technology and other centralized models. Consequently, the company has experienced sales declines, pressured profitability, and a lower market cap.
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Nevertheless, Berenberg expects the new management team to turn around WPP Plc’s fortunes by delivering on a simplification process. Wells Fargo expects WPP Plc to return to positive organic sales growth and margin expansion from 2028.
The bounce back would come as the company boasts of global scale, heritage, blue-chip clients, and the ability to deliver integrated brands. Wells Fargo also expects WPP Plc to achieve dividend yields of between 7% and 10% on the back of free cash flow yields of between 12% and 22% between 2027 and 2028.
WPP Plc is a global creative transformation company. It acts as the parent organization for a vast network of advertising, media, public relations, and data-driven marketing agencies. The company helps massive global brands design advertising campaigns, buy ad space, and manage their public image across 110,000+ employees globally.
4. British American Tobacco plc (NYSE:BTI)
Dividend Yield: 5.37%
Number of Hedge Fund Holders: 41
British American Tobacco plc (NYSE:BTI) is one of the UK’s highest-dividend stocks. British American Tobacco plc (NYSE:BTI) has paid dividends for over two decades and currently pays a quarterly dividend of about $0.82 a share with a forward dividend yield of 5.67%. Early in the year, it increased its quarterly dividend by 2% to 245.04p. The company has also affirmed its commitment to delivering sustainable shareholder value through robust cash returns.
Earlier on June 2, Chief Executive Officer Tadeu Marrocco reiterated that British American Tobacco is on course to deliver its full-year guidance, driven by US delivery and new category momentum. The company is projecting 3% to 5% revenue growth and 4% to 6% adjusted profit from operations growth. Adjusted earnings per share are expected to grow by between 5% and 8%.
British American Tobacco is also optimistic about delivering operating cash flow conversion in excess of 95% in 2026. The impressive financial position would be driven by accelerating new-category performance, underpinned by global share gains for Velo and Vuse.
British American Tobacco plc (NYSE:BTI) is a leading, multi-category consumer goods business that operates internationally. Their core business ranges from agricultural activities like growing tobacco leaf to the manufacturing, distribution, and global sale of traditional cigarettes and potentially reduced-risk smokeless nicotine products.
3. Nomad Foods Limited (NYSE:NOMD)
Dividend Yield: 6.59%
Number of Hedge Fund Holders: 37
Nomad Foods Limited (NYSE:NOMD) is one of the UK’s highest-dividend stocks. The company has consistently paid dividends for the past three years, with a quarterly dividend of about $0.17 a share, translating to a dividend yield of about 6.59%.
On June 2, Nomad Foods announced a £2.2m investment in a new potato waffle production line. The investment at the company’s Lowestoft factory in the UK aligns with the company’s broader long-term productivity program announced last year. The program seeks to increase efficiency and scale across the entire manufacturing network.
The £2.2 million investment will increase total waffle capacity to about 18,250 tonnes annually, equivalent to about 45 million potato waffles. Nomad Foods is also eyeing a £12 million outlay in chicken processing and development of an on-site wind turbine to secure long-term, predictable energy.
The investments underscore Nomad Foods’ commitment to expanding access to frozen food categories, such as fish, vegetables, chicken, and potatoes, amid increasing pressure on global food systems.
Nomad Foods Limited is Europe’s largest frozen food company. It manufactures, markets, and distributes a diverse portfolio of branded frozen foods—including fish, vegetables, ready meals, poultry, and pizza—across 22 European markets.
2. LyondellBasell Industries (NYSE:LYB)
Dividend Yield: 6.86%
Number of Hedge Fund Holders: 59
LyondellBasell Industries (NYSE:LYB) is one of the UK’s highest-dividend stocks. The company pays a quarterly dividend of $0.69 per share, translating to a dividend yield of about 6.86%. On May 22, LyondellBasell Industries declared a $0.69-per-share dividend, paid on June 8.
On May 28, Wells Fargo upgraded the stock to Overweight from Equal Weight and raised the price target to $98 from $80. The stock is currently trading at $58.25. The upgrade and price target hike are in response to expectations that the company is well-positioned to benefit from higher polyethylene prices. The prices have increased by $0.30 a pound since the US-Iran war started.
Wells Fargo expects the higher Polyethylene prices to trigger another round of upward earnings revisions as the company continues to capitalize on exports. Over the past few years, LyondellBasell has exported 30% to 40% of its US Gulf Coast supply. The research firm expects the company to maximize exports and capitalize on higher export margins.
LyondellBasell Industries is a major multinational chemical and refining company. It specializes in producing polymers (plastics), petrochemicals, and refined fuels. Its materials serve as the essential raw building blocks for a vast array of everyday consumer and industrial goods, including food packaging, automotive components, and medical devices.
1. Brightstar Lottery PLC (NYSE:BRSL)
Dividend Yield: 7.95%
Number of Hedge Fund Holders: 29
Brightstar Lottery PLC (NYSE:BRSL) is one of the UK’s highest dividend stocks. While Brightstar Lottery PLC has paid dividends for over 10 years, it boasts a quarterly dividend of $0.23 a share with a dividend yield of about 8.24%.
Meanwhile, on June 11, Brightstar Lottery PLC announced leadership changes, with CEO Renato Ascoli stepping down from his role as head of Global Lottery effective June 30, 2026. After two decades in senior positions across global markets, Ascoli leaves behind a legacy of innovation and growth in the lottery industry.
Effective July 1, Marco Tasso will be promoted to Executive Vice President and Chief Operating Officer of Global Lottery. Tasso, currently COO of International and Italy Operations, brings over 20 years of experience in both B2C and B2B segments. In his new role, he will oversee global lottery operations, including technology, product development, marketing, sales, supply chain, and customer support, reporting directly to CEO Vince Sadusky.
Brightstar’s board praised Ascoli’s contributions, while highlighting Tasso’s track record at Northstar Lottery Group and leadership roles at Lottomatica. With nearly 90 lottery customers across six continents and technology services supporting major U.S. and global lotteries, Brightstar remains a leading player in the industry.
Brightstar Lottery PLC is a global, pure-play lottery company. It operates and provides secure technology, retail systems, and digital iLottery platforms to governments and regulators across six continents.
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