6 Best Dividend Stocks UK in 2024

British American Tobacco (BAT) is a leading global tobacco company. Despite the regulatory challenges and declining smoking rates in developed markets, BAT has maintained strong financial performance through product innovation and expansion into new categories, such as vaping products.

HSBC Holdings is one of the largest banking and financial services organizations in the world. The bank has a substantial presence in Asia, which is a significant driver of its growth. HSBCs strong capital position and diversified revenue streams support its consistent dividend payments.

In the past year, HSBC saw solid growth in the markets, which has helped support an increase in the dividend payout. The bank‘s stock is trading on the LSE under the HSBA ticker symbol and under HSBC on the NYSE. HSBC’s robust dividend yield and strategic focus on high-growth regions make it an attractive investment for income-focused investors.

• Sector: Finance

• Market Capitalization: 126.65 billion GBP

• Dividend Yield (TTM): 7.20%

• 1-Year Performance: 13.12%

3. Rio Tinto

Rio Tinto is a leading global mining group, focusing on the extraction and production of minerals such as nickel, iron ore, aluminum, copper, and diamonds. The companys strong balance sheet and operational efficiency enable it to deliver substantial dividends to its shareholders.

The company‘s stock is trading on the NYSE and LSE under the same ticker, RIO. Rio Tinto’s commitment to returning value to shareholders through dividends, combined with its diversified mineral portfolio, makes it a solid pick for dividend investors.

• Sector: Non-Energy Minerals

• Market Capitalization: 89.38 billion GBP

• Dividend Yield (TTM): 6.50%

• 1-Year Performance: 2.77%

4. National Grid

National Grid is a major player in the UK‘s energy sector and is responsible for the transmission and distribution of electricity and gas. The company’s regulated business model ensures stable cash flows, which support its strong dividend payouts.

Earlier this year, the company announced a 60 billion GBP project that will start in 2024 and run through 2029 to fund green energy transition in the UK. The company‘s stock is trading on the NYSE under the NGG symbol. The National Grid’s reliable dividend payments and critical role in the UKs energy infrastructure make it a dependable choice for income investors.

• Sector: Utilities

• Market Capitalization: 41.47 billion GBP

• Dividend Yield (TTM): 6.07%

• 1-Year Performance: -7.48%

5. NatWest Group

NatWest Group, formerly known as Royal Bank of Scotland, is a major UK banking group offering a wide range of financial services. The bank has undergone significant restructuring in recent years, improving its financial stability and capacity to pay dividends.

As part of its modernization efforts, NatWest released Cora+ last year. Cora is a virtual chatbot that helps customers with various tasks. Just one year after its launch, the bot handled 10.8M queries, double the number of queries it handled in 2023. NatWests stock is trading on the NYSE under the NWG symbol and under NG on the LSE.

• Sector: Finance

• Market Capitalization: 25.27 billion GBP

• Dividend Yield (TTM): 5.60%

• 1-Year Performance: 18.21%

6. Lloyds Banking Group

Lloyds Banking Group is one of the largest retail and private banks in the UK. The banks focus on digital transformation and customer service has enhanced its operational efficiency and financial performance, supporting its ability to pay consistent dividends.

Despite Lloyds impressive dividend yield and robust market performance of the LYG stock in the past year, Lloyds is considering cutting its workforce by 2,500 due to poorer-than-expected mortgage results. At the same time, the bank invested a considerable amount of funds in fintech and green initiatives, which could pay dividends (no pun intended) in the future.

• Sector: Finance

• Market Capitalization: 38.2 billion GBP

• Dividend Yield (TTM): 5.48%

• 1-Year Performance: 16.90%

The bottom line

The companies listed above are among the best dividend stocks in the UK for 2024, offering a combination of high yields, financial stability, and growth potential. When selecting dividend stocks, it is essential to consider factors such as dividend sustainability, payout ratios, and the overall financial health of the company to ensure a reliable income stream.