Best Dividend Stocks this January 2026 in the UK

Legal & General Group plc stands out as an appealing investment choice, boasting an impressive dividend yield of 8.32% and a solid one-year return of 20.40%. This insurance and investment firm is known for its strong recent dividend payments, making it a reliable option for investors seeking consistent income from financially healthy companies. Despite a slight decline of 2.70% over the past five years, its strong analyst rating of C+ indicates a positive outlook in the current market environment.

Phoenix Group Holdings plc stands out as a high-income investment option, boasting a substantial dividend yield of 7.97%. This life insurance provider has delivered impressive returns, with a 54.27% gain over the past year, reinforcing its reputation as a reliable choice for income-focused investors. While the analyst rating sits at C-, the company’s consistent payouts differentiate it from competitors like Legal & General, making it a noteworthy consideration for those seeking dependable returns.

Phoenix is considered a strong long-term investment due to its status as a reliable high-income stock, offering a forward dividend yield between 9.5% and 10.5%, one of the highest on the FTSE 100.

With a robust dividend yield of 7.16%, Land Securities Group plc stands out as a prime opportunity for yield-seeking investors. Recently, analysts have varied in their assessments, with Deutsche Bank upgrading it to a "Buy," suggesting a favorable outlook. Despite a 5-year return of -4.17%, the stock has delivered a notable 23.15% return over the past year, indicating potential for recovery and growth.

Analysts have a target price range for LSEG between 11,000.00 GBp and 14,550.00 GBp, with an average of 12,400.59 GBp, indicating a potential upside of 35.02% and making it an attractive investment.

WPP plc stands out as a leading advertising group, currently offering an attractive dividend yield of approximately 9.22%. However, the stock has experienced significant declines, with a 1-year return of -56.11% and a 5-year return of -59.21%, largely attributed to revenue growth failing to meet expectations. Analysts have downgraded their ratings, with Morgan Stanley assigning an Underweight rating, indicating a cautious outlook for the company amidst these challenges.

WPP PLC's stock is declining due to revenue growth that fell short of expectations, as noted in Hotchkis & Wiley's recent investor letter.

Analysts have set an average twelve-month price target of GBX 362.50 for WPP, indicating a potential upside of 13.53% from its current price of GBX 319.30.

M&G plc stands out as an attractive option for those seeking reliable income through its impressive dividend yield of 7.98%. With a solid dividend cover ratio of 1.51, this asset manager has delivered substantial returns, boasting a 49.36% gain over the past year and 56.41% over five years. Despite a D+ analyst rating, its focus on financially healthy companies provides a strong foundation for ongoing performance.

Magna (MGA) has a Zacks Rank of #2 (Buy) and a strong value rating with a P/E ratio of 8.47, significantly lower than the industry average of 18.18.

M&G's dividend has increased from 18.2p in 2020 to 20.1p per share in 2024, providing a trailing yield of 9.1%, making it an attractive income stock.