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What is Dividend Stocks UK

The Dividend stocks UK are stocks issued by companies that provide dividends to their shareholders on a regular basis. In addition to increasing the value of the stock, dividend stocks can provide a stream of income. There are many companies in the UK and other countries that pay dividends to their shareholders. They can be large, well-established companies or smaller, new ones. Some investors focus specifically on dividend stocks as a way to generate a steady income from their investments, while others may consider dividends as a secondary factor when choosing stocks to buy.

UK Dividends Stocks to Buy and Hold for Forever

Tritax Big Box REIT

A UK logistics real estate investment trust that owns, manages, and develops prime logistics buildings.

A torrid 2022 has been experienced by holders of real estate investment trust Tritax Big Box (LSE: BBOX). However, now is probably a good time to start building a position in a dividend stock I have long admired.

The rise in online shopping has enabled Tritax to build a stellar list of blue-chip clients, including Amazon and Tesco. While the cost-of-living crisis may indirectly (and temporarily) put the brakes on earnings growth, the continued need for warehouse space makes the FTSE 250 constituent a great defensive option. If either of the above clients were unable to pay their rent, then things would have to get really bad.

In 2023, there will be far worse places to look for passive income than the near-5% forecast dividend yield.

Tritax Big Box REIT is not owned by Paul Summers.

Foresight Solar Fund 

Solar photovoltaics and batteries are owned by Foresight Solar, an investment trust based both in the northern hemisphere (UK, Spain) and southern hemisphere (Australia). 

Over the past 12 months, Foresight Solar Fund (LSE: FSFL) has paid out a dividend of 7.05p. With a share price of 114.6p, that’s 6.15% trailing yield. The analyst consensus forecasts 7.26p in 2023, so the forward yield is 6.3%. Annually, dividend payouts have increased by 2.6% 

As the company operates in a growing industry, expansion should be possible. As a result, the dividend is covered at least twice over by forecasted earnings. Despite the high set-up costs for solar panels and batteries, they usually generate steady income.

While equity raises (without debt) have funded asset purchases, it is important to point out that the Dividend stocks UK count has doubled over the last five years, which may dilute shareholder returns. 

Foresight Solar Fund shares are not owned by James J. McCombie

Rio Tinto

The company sells iron ore to its largest customer, China, which makes up the bulk of its revenue. Rio Tinto is the second largest metals and mining company in the world.

Since China’s manufacturing activity has been in flux and property prices have fallen, Rio Tinto’s (LSE: RIO) shares have been volatile.

The commodity’s price, however, has risen sharply as China attempts to reopen and end its zero-covid policy. Since the country’s largest lender has approved projects for the time being, fears of a property market crash have also been abated for now. Therefore, Rio’s share price is expected to rise as iron demand spikes.

Rio Tinto’s monster dividend yield is now a little more secure than it had previously been, since cash is expected to flow in. Regardless, the giant has a strong balance sheet that can cover its current 9.4% dividend yield up to 1.7 times. For those reasons, I intend to add shares in this dividend stock to my portfolio in the near future.


The Aviva Group is the UK’s leading insurance, wealth, and retirement company. 

The company has been transformed by chief executive Amanda Blanc since her appointment in 2020. Since then, she has divested non-core international businesses, strengthened its finances, and returned value to shareholders. 

Now, she is committed to capitalizing on Aviva’s core markets of the UK, Ireland, and Canada to deliver ongoing attractive returns. 

As a result of our strong liquidity and capital position, we are declaring an interim dividend of 10.3p in line with our full-year dividend guidance of c.31p in the last half-year results. We are increasingly confident in Aviva’s prospects and anticipate commencing additional return

Ms Blanc’s guiding principle, “Delivering for our shareholders is at the core of our strategy,” is evident in the 31p dividend guidance. Dividends are never guaranteed, but she exudes conviction in her statement. 

G A Chester does not own shares in Aviva. 

Direct Line Insurance Group

Direct Line provides motor, business, home, and breakdown insurance, and is known for its motor cover.

A dividend yield of 10% is forecast for Direct Line Insurance (LSE: DLG) this year. Despite such a high yield, I believe that this payout will remain the same.

Several one-off pressures have affected Direct Line this year, mainly due to cost inflation and supply chain problems. Most other motor insurers have experienced similar problems as well, so it’s not just Direct Line.

Related: Facility Management Companies UK

In 2023, earnings are expected to return to more normal levels, so CEO Penny James believes the dividend can be funded with surplus capital.

Although this guidance was confirmed in November, new problems might emerge – or the recovery could be weaker than expected next year.

I think Direct Line Insurance (LSE: DLG)’s dividend payout will remain unchanged despite the company’s forecast dividend yield of 10%.

Several one-off pressures have affected Direct Line this year, mainly due to cost inflation and supply chain problems. Most other motor insurers have experienced similar problems as well, so it’s not just Direct Line.

As earnings aren’t expected to cover this year’s dividend, CEO Penny James says the payout can be covered by surplus capital. Earnings will then return to normal levels in 2023.

While this guidance was confirmed in November, it’s still possible that new problems will emerge – or that the recovery next year will be weaker than anticipated.

Although there are risks, I think this 10% yield makes this Dividend stocks UK a top buy in January.

Direct Line Insurance Group is owned by Roland Head.

Games Workshop Group 

A tabletop gaming company, Games Workshop creates and sells fantasy-related models and products.

With the global economy struggling and corporate profits under pressure, finding decent dividend growth stocks is more difficult than usual. 

I would like to buy Games Workshop Group (LSE:GAW) shares before the company’s half-year report is released on 10 January, since I’m looking for payout growth. 

Despite a recession, demand for miniature wargaming remains stable, so I expect another encouraging release to lift its share price. 

Analysts predict a 244p dividend for this fiscal year (ending May 2023), up from 235p last time around. An even bigger 257p dividend is expected for fiscal 2024. 

As noted, these forecasts yield 3.3% and 3.5%, which are both higher than the average FTSE 250 reading of 3.1%. 

The Games Workshop Group is owned by Royston Wild.

Hargreaves Lansdown

Currently, Hargreaves Lansdown has assets under administration totaling about £120 billion.

I am recommending Hargreaves Lansdown (LSE: HL) as my top Dividend stocks UK for January. It paid out 39.7p a share last year, equivalent to a 4.5% yield at the moment.

The company benefits from rising interest rates. Higher rates generate more interest on customer deposits, so I am bullish on Hargreaves Lansdown.

Currently, the stock has a P/E ratio of around 16. As a company with a strong growth track record and a high level of profitability (one of the most profitable companies in the FTSE 100 index), I think that is a very attractive valuation.

Co-operation at risk

We should consider the possibility of a new CEO coming in soon. He could potentially change the dividend policy.

The risk-reward proposition, however, is appealing to me at the moment.

Shares of Hargreaves Lansdown are owned by Edward Sheldon.


Investors from a variety of industries trust M&G to manage their investments.

Despite the current price, I would be happy to add more shares to my portfolio if I had spare funds to invest in M&G (LSE: MNG).

At the moment, M&G offers a 10% dividend yield. It even raised its interim payout by 2% this year, and it has also completed a half billion pound share buyback program, which is expected to boost future dividends. By doing so, the firm will be able to pay a higher dividend without increasing its total expenses.

The business itself must remain in rude health for this to happen. There are risks as well, such as investors withdrawing money from their holdings during the recession. This could negatively affect sales and profitability.

M&G, however, has a bright future ahead that bodes well for its dividend. Long-term financial services demand is resilient and a trusted brand contributes to its success.

M&G shares are owned by Christopher Ruane.

Smith & Nephew

As a designer and manufacturer of orthopaedic, wound care, and sports medicine devices, Smith & Nephew specializes in orthopaedics.

According to Zaven Boyrazian, many income stocks are hurting their dividends because of the ongoing crisis in living costs. However, Smith & Nephew (LSE:SN) seems to be able to keep its dividends intact.

Hospitals and clinics rely on the firm for orthopaedics, wound care, and sports medicine products. Healthcare is crucial no matter what the economy does. Covid-19 products are in high demand now that elective surgeries have loosened their grip on medical institutions.

Since 1937, Smith & Nephew has paid a dividend every year. That’s not the most exciting yield, but it’s proved remarkably resilient over the years.

This high-risk business looks like an excellent buy-and-hold investment for my portfolio despite its highly regulated industry.

Smith & Nephew shares are not owned by Zaven Boyrazian.

This top growth pick is perfect for the ‘cost of living crisis’

The stock has quietly grown 880%, while Google and Amazon have been in the news.

  • An increase in margins of more than 20X
  • Over the past five years, revenue has grown by nearly 60% – more than Apple, Amazon or Google!
  • An earnings explosion of 3,00%

There is no guarantee that past performance will translate to future results, but we believe it’s stronger than ever before. It’s amazing that you may not have heard of this company before.

The company offers 250 brands, and you’re likely to have used at least one of them. Many are household names with millions of monthly web visitors, so consumers are able to compare items, shop around, and save money.

As the ‘cost of living crisis’ bites, we believe its influence could soar. That could mean immediate new gains for investors who are in position today. Don’t miss your FREE report, ‘One Top Growth Stock.’

Source Rewrite From: https://www.fool.co.uk/2023/01/08/top-british-dividend-stocks-to-buy-for-january/