5 UK Stocks with the Highest Dividends

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.