10 Stocks Paying Highest Dividends in the UK Stock Exchange
- Persimmon (PSN): A leading house-building company with a dividend yield of 15.80% for 2023, according to CMC Markets. Persimmon has a strong balance sheet and a robust cash generation, and has been paying special dividends to shareholders since 2012.
- Rio Tinto (RIO): A global mining giant with a dividend yield of 9.25% for 2023, according to CMC Markets. Rio Tinto has benefited from high commodity prices and strong demand from China, and has returned $9.1 billion to shareholders in 2022 through dividends and share buybacks.
- M&G (MNG): A financial services company with a dividend yield of 10.8% for 2023, according to MoneyWeek. M&G was spun off from Prudential in 2019 and offers asset management and insurance products. M&G has a low valuation and a high dividend cover, but faces challenges from low interest rates and regulatory pressures.
- Phoenix Group (PHNX): An insurance company with a dividend yield of 9.7% for 2023, according to MoneyWeek. Phoenix Group specialises in acquiring and managing closed life and pension funds, and has grown through acquisitions of Standard Life Assurance and ReAssure. Phoenix Group has a stable cash flow and a progressive dividend policy.
- British American Tobacco (BATS): A tobacco company with a dividend yield of 9.2% for 2023, according to MoneyWeek. British American Tobacco is one of the world's largest tobacco companies, with brands such as Dunhill, Lucky Strike and Pall Mall. British American Tobacco has diversified into new categories such as vaping and heated tobacco, and has increased its dividend for 21 consecutive years.
- Legal & General (LGEN): A financial services company with a dividend yield of 8.8% for 2023, according to MoneyWeek. Legal & General offers insurance, pensions, investments and annuities, and has a large exposure to the UK market. Legal & General has a strong capital position and a resilient business model, and has grown its dividend for 11 consecutive years.
- Glencore (GLEN): A mining and trading company with a dividend yield of 8.6% for 2023, according to MoneyWeek. Glencore is one of the world's largest producers and traders of commodities such as coal, copper, zinc and nickel. Glencore has recovered from a debt crisis in 2015 and resumed its dividend payments in 2017, and has also announced a $2.8 billion share buyback programme for 2022.
- Vodafone (VOD): A telecommunications company with a dividend yield of 8.4% for 2023, according to MoneyWeek. Vodafone is one of the world's largest mobile operators, with operations in Europe, Africa, Asia and Oceania. Vodafone has invested heavily in network infrastructure and spectrum licenses, and has also sold some of its non-core assets such as Vodafone Egypt and Vantage Towers. Vodafone cut its dividend by 40% in 2019 but has maintained it since then.
- Taylor Wimpey (TW): A house-building company with a dividend yield of 8.4% for 2023, according to MoneyWeek. Taylor Wimpey is one of the UK's largest house builders, with operations in England, Scotland and Wales. Taylor Wimpey has a healthy order book and a strong cash position, and has resumed its dividend payments in 2021 after suspending them in 2020 due to the pandemic.
- Aviva (AV): An insurance company with a dividend yield of 8.3% for 2023, according to MoneyWeek. Aviva offers life, general and health insurance, as well as savings and investments products. Aviva has undergone a strategic transformation under its new CEO Amanda Blanc, who has sold or agreed to sell several non-core businesses such as Aviva France, Aviva Italy and Aviva Singapore. Aviva has also restored its dividend to pre-pandemic levels in 2021.