In this article, we will take a look at some of the best FTSE dividend stocks.
UK stocks have delivered a strong performance recently, with the FTSE 100 crossing the 9,000 mark for the first time and hitting record highs several times this year. The index posted a 7.2% return in the first half of the year, which was its best start since 2021 when it gained 8.9%.
So far this year, an FTSE 100 tracker fund delivered a total return of 14.2%, including dividends but before fees. This is quite appealing given that the year is only halfway through.
The FTSE 100 tends to attract investors during times of global uncertainty because it has many defensive stocks. Sectors such as tobacco, utilities, and telecoms are known for their reliable earnings as they provide essential services that people and businesses continue to need regardless of economic conditions.
Banks and insurers have also remained popular choices because of their attractive dividends. While share prices in these areas may fluctuate, income-focused investors value the stability dividends provide, especially during periods of economic weakness or employment concerns, since dividends can offer a consistent source of cash. Given this, we will take a look at some of the best FTSE dividend stocks to invest in.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this article, we scanned Insider Monkey’s database of 1,000 hedge funds as of Q1 2025 to find FTSE stocks that are also traded on US exchanges. Our focus was on companies that have strong dividend policies and consistently distribute dividends to their shareholders. The stocks are ranked in ascending order of hedge funds’ sentiment toward them.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Smith & Nephew plc (NYSE:SNN)
Number of Hedge Fund Holders: 10
Smith & Nephew plc (NYSE:SNN), a global medical technology company based in the UK, provides a broad selection of products and services in the medical equipment sector to meet the needs of its customers.
In its Q1 2025 earnings, Smith & Nephew plc (NYSE:SNN) reported a strong start to the year, attributing growth across its portfolio to progress made under its 12-Point Plan for operational improvements. Core platforms, including CORI, EVOS, REGENETEN, and the company’s Negative Pressure Wound Therapy offerings, saw robust double-digit growth during the quarter. The company also continued its rapid pace of innovation, with additional product launches planned for the year. While challenges from the Chinese market persisted, management believes the worst of their impact has likely passed.
Smith & Nephew plc (NYSE:SNN) has a progressive dividend policy and has paid regular dividends to shareholders since 1937. The company currently offers a semi-annual dividend of $0.288 per share for a dividend yield of 2.37%, as of July 25. It is one of the best FTSE dividend stocks to invest in.
9. NatWest Group plc (NYSE:NWG)
Number of Hedge Fund Holders: 17
NatWest Group plc (NYSE:NWG) is an Edinburgh-based company that offers mortgages, loans, credit cards, and related services. The company recently announced its results for the first half of the year, highlighting a £4.2 billion increase in net loans to customers, bringing the total to £336.2 billion. This figure includes £2.2 billion in personal loans and credit card balances acquired from Sainsbury’s Bank as of June 30, 2025.
Within Retail Banking, NatWest Group plc (NYSE:NWG)’s mortgage balances grew by £4.1 billion, while Commercial & Institutional balances rose by £2.0 billion, mainly due to increased lending activity in the Commercial Mid-market segment, particularly to housebuilders and housing associations, as well as within the Corporate & Institutions division.
NatWest Group plc (NYSE:NWG) reported an operating cash flow of £2.5 billion. The company also returned £1.4 billion to shareholders through dividends during this period. Its semi-annual dividend comes in at $0.1543 per share for a dividend yield of 3.92%, as of July 25.
