In this article, we will take a look at some of the best FTSE dividend stocks to invest in.
On October 28, the UK’s FTSE 100 index climbed throughout the session to reach a record high, surpassing 9,700 points before closing up 0.4%.
One of the main attractions of the UK stock market is its strong dividend culture. Many British companies have a long record of returning substantial amounts of cash to shareholders, which makes the market an appealing choice for income investors.
As of September 2025, the FTSE 100 has performed well, reaching new highs. Investors who consider total returns, which include both capital gains and dividends, have seen a 16% gain in the year through September 18, 2025, a result that would satisfy most market watchers.
However, a report by AJ Bell pointed out that the FTSE 100 remains highly concentrated. Ten companies are expected to contribute 53% of the forecasted total dividends for 2025, amounting to £42.2 billion, while the top 20 companies are projected to make up around 70% of the total payout.
Given this, we will take a look at some of the best FTSE dividend stocks to invest in.
Our Methodology
For this article, we scanned through the list of FTSE stocks and picked dividend stocks from the list. From the resultant dataset, we picked the 11 dividend stocks that have strong dividend histories and are traded on US exchanges. The stocks are ranked according to their dividend yields as of October 29.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Smith & Nephew plc (NYSE:SNN)
Dividend Yield as of October 29: 2.11%
Smith & Nephew plc (NYSE:SNN), a global medical technology company based in the UK, offers a wide range of products and services within the medical equipment industry to serve its customers’ needs.
On October 20, RBC Capital raised its price target on Smith & Nephew plc (NYSE:SNN) to GBP1,700 from GBP 1,400, while maintaining an Outperform rating on the medical technology company.
The price target revision was made ahead of the company’s Capital Markets Day (CMD) in December, where RBC expects the company to outline guidance of 5–6% revenue compound annual growth rate (CAGR) and 2–3 percentage points of EBIT margin expansion through 2028.
RBC noted that such guidance would likely be viewed favorably by investors, as it suggests modest upside to current consensus estimates at the midpoint. The firm remains “cautiously optimistic” about Smith & Nephew plc (NYSE:SNN)’s upcoming third-quarter results, which are expected to be released in the first week of November. The higher price target reflects RBC’s updated valuation model, while the firm continues to maintain its Outperform rating on SNN.
Smith & Nephew plc (NYSE:SNN) maintains a progressive dividend policy and has consistently paid dividends to shareholders since 1937, which makes it one of the best FTSE dividend stocks. The stock has a dividend yield of 2.11%, as of October 29.
10. Pearson plc (NYSE:PSO)
Dividend Yield as of October 29: 2.28%
Pearson plc (NYSE:PSO) is a British multinational company specializing in publishing and education, offering a range of products and services within the sector.
On October 20, JPMorgan analyst Daniel Kerven increased the firm’s price target on Pearson plc (NYSE:PSO) to 1,330 GBp from 1,310 GBp, while maintaining an Overweight rating on the stock.
Pearson plc (NYSE:PSO) delivered strong third-quarter 2025 results, with underlying group sales rising 4% in the quarter and 2% over the first nine months of the year. Virtual Learning sales surged 17% during the period, supported by a 13% increase in 2025/26 academic year enrollments. Management expects full-year group sales growth and adjusted operating profit to align with market expectations, with stronger momentum anticipated in the fourth quarter.
Pearson plc (NYSE:PSO) has also demonstrated consistency in shareholder returns, having paid regular dividends for 34 consecutive years. As of October 29, the stock has a dividend yield of 2.28%.
9. GSK plc (NYSE:GSK)
Dividend Yield as of October 29: 3.56%
GSK plc (NYSE:GSK) is among the best FTSE dividend stocks to invest in. It is a major global healthcare company with operations in multiple therapeutic fields, including vaccines, respiratory, and oncology.
On October 27, Jefferies initiated coverage on GSK plc (NYSE:GSK) with a Buy rating and a price target of 2,000 GBp. The firm noted that, at a 30% discount, GSK “offers significant upside skew,” adding that the new CEO mainly needs to gain some time through an efficiency program, as there are early signs of progress in the company’s pipeline and potential for further business development, according to the analyst.
GSK plc (NYSE:GSK) recently posted its earnings for the third quarter of 2025. Total Q3 2025 sales reached £8.5 billion, marking a 5% increase from the same quarter last year. Its cash position remained solid, with cash generated from operations at £2.5 billion and free cash flow standing at £1.2 billion. This strong liquidity enabled the company to pay dividends of £1.9 billion to shareholders.
GSK plc (NYSE:GSK) is also a strong dividend payer, offering a dividend yield of 3.56% as of October 29.
8. Shell plc (NYSE:SHEL)
Dividend Yield as of October 29: 3.73%
Shell plc (NYSE:SHEL) is a global integrated energy company focused on meeting the world’s rising energy needs. Its operations span from exploring and producing hydrocarbons to refining crude oil, marketing fuels, and providing a wide range of products and services to industries such as aviation and power generation.
On October 17, Wells Fargo began coverage of Shell plc (NYSE:SHEL) with an Equal Weight rating and a $76 price target. The firm launched coverage on the global integrated oil, Canadian majors, and refiners group, noting that “everyone is bearish” on oil and energy stocks, which it believes opens up opportunities.
According to the analyst, Wells is selecting companies based on their return on capital strategy. While demand indicators remain weak, US onshore activity trends offer a supply-side balance, the firm said in its research note. It also emphasized that the direction of capital returns largely determines relative performance within the sector. The firm also named some other energy companies as dividend leaders in the industry.
Shell plc (NYSE:SHEL) has been a consistent dividend payer, distributing regular dividends to its shareholders since 1985. The company currently offers an interim dividend of $0.358 per share and has a dividend yield of 3.73%, as of October 28.
7. Lloyds Banking Group plc (NYSE:LYG)
Dividend Yield as of October 29: 3.77%
Lloyds Banking Group plc (NYSE:LYG) is a UK-based financial services firm that caters to both retail and commercial clients.
On October 28, RBC Capital analyst Benjamin Toms lifted the firm’s price target on Lloyds Banking Group plc (NYSE:LYG) from 100 GBp to 110 GBp while maintaining an Outperform rating on the stock.
Lloyds Banking Group plc (NYSE:LYG) recently reported its earnings for the third quarter of 2025, highlighting continued strong performance and steady strategic progress. This includes the recent acquisition of Schroders Personal Wealth. During the first nine months of 2025, customer deposits rose by £14.0 billion (3%) to reach £496.7 billion, driven by £4.0 billion growth in Retail and £10.0 billion in Commercial Banking. In the third quarter alone, deposits increased by £2.8 billion, primarily within the Commercial Banking segment.
Lloyds Banking Group plc (NYSE:LYG) is a strong dividend company, offering an interim dividend of 1.22 pence, which amounts to amounts to £731 million, excluding the impact of any additional share cancellations under the company’s ongoing buyback program. The stock has a dividend yield of 3.77%, as of October 29.
6. NatWest Group plc (NYSE:NWG)
Dividend Yield as of October 29: 4.16%
NatWest Group plc (NYSE:NWG) is an Edinburgh-based financial institution that provides a range of services, including mortgages, loans, and credit cards.
On October 28, RBC Capital raised its price target on NatWest Group plc (NYSE:NWG) from 650 GBp to 725 GBp while maintaining a Sector Perform rating on the stock.
The company recently released its third-quarter 2025 results, reporting a profit of £126 million. This marks a notable improvement from £30 million in the previous quarter and £20 million in the same period last year. NatWest Group plc (NYSE:NWG) also maintained a strong capital and liquidity position during the quarter. As of September 30, 2025, total assets and liabilities stood at £189.3 billion and £182.4 billion, respectively, representing increases of £6.1 billion and £6.2 billion compared with December 31, 2024.
NatWest Group plc (NYSE:NWG) also offers dividends to shareholders, with a dividend yield of 4.16%, as of October 29.
5. HSBC Holdings plc (NYSE:HSBC)
Dividend Yield as of October 29: 4.66%
HSBC Holdings plc (NYSE:HSBC) is a London-based global banking and financial services institution with longstanding connections to East Asia and an extensive international network.
On October 29, Citigroup raised its price target on HSBC Holdings plc (NYSE:HSBC) from 1,160 GBp to 1,240 GBp while maintaining a Buy rating on the stock.
The company recently reported its third-quarter 2025 results, posting a 5% year-over-year revenue increase of $0.8 billion to $17.8 billion compared with Q3 2024. The rise was driven by higher fees and other income in the Wealth division, particularly within the International Wealth and Premier Banking (IWPB) and Hong Kong segments. Net interest income (NII) climbed by $1.1 billion, or 15%, to $8.8 billion from the same period last year.
The Board approved a third interim dividend of $0.10 per share for 2025 and reaffirmed its target dividend payout ratio of 50% for the year, excluding material notable items and related effects. HSBC Holdings plc (NYSE:HSBC) offers a dividend yield of 4.66%, as of October 29.
4. Rio Tinto Group (NYSE:RIO)
Dividend Yield as of October 29: 5.11%
Rio Tinto Group (NYSE:RIO) is a leading global mining company engaged in the exploration, extraction, and processing of key metals and minerals vital to modern industries, including iron ore, aluminum, copper, and lithium.
On October 16, JPMorgan analyst Dominic O’Kane trimmed the firm’s price target on Rio Tinto Group (NYSE:RIO) from 6,170 GBp to 6,100 GBp while maintaining an Overweight rating on the stock.
Earlier in the month, Rio Tinto Group (NYSE:RIO) reported a 6% quarter-over-quarter increase in third-quarter iron ore shipments, despite scheduled maintenance work. Its operations in Australia’s Pilbara region recorded the second-highest Q3 shipment levels since 2019. Copper production for the quarter reached 204,000 tons, up 10% year over year, keeping the company on track to meet the upper end of its full-year guidance of 780,000–850,000 tons. The improvement reflects strong output growth at the Oyu Tolgoi mine in Mongolia.
Rio Tinto Group (NYSE:RIO) also remains recognized for its consistent dividend payments. It currently pays a semi-annual dividend of $1.48 per share and has a dividend yield of 5.11%, as of October 29.
3. Prudential Financial, Inc. (NYSE:PRU)
Dividend Yield as of October 29: 5.35%
Prudential Financial, Inc. (NYSE:PRU) is a global insurance company offering life and health insurance, along with asset management services.
On October 13, BofA raised its price target on Prudential Financial, Inc. (NYSE:PRU) from $112 to $118 while maintaining a Neutral rating on the stock. The firm noted that it is revising price targets for US insurance companies within its coverage. According to the analyst, the third quarter was a “relatively calm” period, as no hurricanes made landfall in the US, and although the first half of the year experienced heightened macroeconomic uncertainties, these did not result in any significant negative impact on earnings.
Prudential Financial, Inc. (NYSE:PRU) is also known for its consistent shareholder returns, having paid regular dividends for 16 consecutive years. The company offers a quarterly dividend of $1.35 per share and has a dividend yield of 5.35%, as of October 29.
2. BP p.l.c. (NYSE:BP)
Dividend Yield as of October 29: 5.53%
BP p.l.c. (NYSE:BP) is a British multinational energy company known globally for its high-quality gasoline, transport fuels, chemicals, and its growing focus on alternative energy sources such as wind and biofuels.
On October 16, Jefferies increased its price target on BP p.l.c. (NYSE:BP) from 400 GBp to 420 GBp while maintaining a Hold rating on the stock, following the company’s Q3 trading update and ahead of its upcoming earnings report. The firm pointed out that BP has the “highest leverage in the sector,” adding that the company “could struggle to achieve leverage reduction in a weaker oil price environment.” Jefferies further commented that although media reports have suggested BP as a possible M&A target, the firm believes the company’s “valuation discount is wide enough.”
Earlier, on August 5, BP p.l.c. (NYSE:BP) declared a quarterly dividend of $0.0832 per share, or $0.4992 per ADS, representing a 4% increase from the previous dividend of $0.08 per share and $0.48 per ADS. The stock has a dividend yield of 5.53%, as of October 29.
1. British American Tobacco p.l.c. (NYSE:BTI)
Dividend Yield as of October 29: 5.97%
British American Tobacco p.l.c. (NYSE:BTI) is one of the best FTSE dividend stocks to invest in.
On October 28, British American Tobacco p.l.c. (NYSE:BTI) announced that it has halted a pilot program to introduce an unlicensed disposable vape in the US, following the Food and Drug Administration’s (FDA) increased efforts to curb unregulated products and accelerate the licensing process.
The move, which had not been previously disclosed, highlights the challenges major tobacco companies face as they compete against a surge of unregulated products, mostly imported from China, that have eroded profits in the $22 billion U.S. market for smoking alternatives.
A spokesperson told Reuters that BAT’s US arm, Reynolds American, has decided to pause the pilot launch of Vuse One, a product it acquired in April, after earlier laying out plans to introduce it without FDA authorization.
Although it was only a pilot, the initiative represented a bold change in how big tobacco engages with FDA regulations and drew considerable attention from investors, competitors, and regulators alike.
British American Tobacco p.l.c. (NYSE:BTI) is a British multinational company that produces cigarettes, tobacco, and related products.
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