Best High Yield Dividend Stocks this January 2026 in the UK

Pagegroup is a recruitment and staffing services firm offering a dividend yield of approximately 7.13%, appealing to income-focused investors. Despite facing challenges, reflected in a 1-year return of -34.99% and a 5-year decline of -54.48%, it remains a top-rated option for those seeking reliable income from financially healthy companies. Analysts have rated it a B-, indicating potential for recovery in a sector known for its consistent payouts.

Legal & General Group plc stands out as an attractive option for income-seeking investors, offering a notable dividend yield of 8.32%. Despite its recent 1-year return of 20.40%, the company has faced challenges over a 5-year span with a slight downturn of 2.70%. With a recent dividend payment of 6.12 pence, this insurance and asset management firm highlights its commitment to providing reliable income to shareholders.

WPP plc stands out among UK dividend stocks with a notable dividend yield of approximately 9.22%. However, it has faced significant challenges, evidenced by a staggering one-year return of -56.11% and a five-year return of -59.21%. Analysts have taken a cautious stance, with recent downgrades from firms like Morgan Stanley, highlighting concerns about revenue growth falling short of expectations.

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 the current price of GBX 319.30.

With a robust dividend yield of 7.16%, Land Securities Group stands out as a compelling choice for income-focused investors. Scheduled to pay 19 pence per share on January 9, this property and real estate company is recognized for its consistent payouts, making it an appealing option for those seeking reliable income streams. Analysts show a mixed outlook, with Jefferies downgrading to a Hold while Deutsche Bank upgraded to a Buy, reflecting a nuanced market sentiment around its prospects.

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

M&G plc stands out as an attractive option for investors seeking reliable income, boasting a notable dividend yield of approximately 7.98%. The asset manager and insurer has delivered impressive returns, with a 49.36% gain over the past year and a 56.41% increase over the last five years. Despite a D+ analyst rating, its robust dividend strategy serves UK and international clients, making it a noteworthy consideration for those focused on dividend growth.

Magna (MGA) has a Zacks Rank of #2 (Buy) and an A grade for Value, with a P/E ratio of 8.47 compared to the industry average of 18.18.

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

Ithaca Energy stands out in the FTSE 250 with an impressive dividend yield of 12.71%, making it an attractive option for investors seeking reliable income. Despite a challenging five-year return of -26%, the stock has shown resilience with a 26.07% gain over the past year. Analysts maintain a consensus rating of Hold, indicating a balanced view on its growth prospects as earnings are expected to increase significantly, even as revenue faces a slight decline.

Ithaca Energy PLC has a consensus rating of Hold, based on 1 buy, 1 hold, and 1 sell rating.

ITH has medium volatility, with daily price movements averaging 3.24% and weekly volatility around 3.85%.

Ithaca Energy's revenue is expected to decline by 2.1% annually, while earnings are projected to grow by 18% per year, with EPS growth at 23.7%.

The consensus rating for Ithaca Energy is 'Buy,' according to insights from 6 analysts.

Victrex stands out as a materials and specialty chemicals company, boasting a notable dividend yield of approximately 9.38%. Despite a challenging year with a return of -32.27% and a significant decline of -73.97% over five years, its strong dividend payouts indicate a commitment to returning value to shareholders. Analysts have recognized the stock with an A- rating, making it a potential option for investors seeking reliable income amidst market volatility.

Victoria's Secret has a consensus rating of 'Buy' based on 31 buy ratings, 20 hold ratings, and 18 sell ratings.

Investing in Victrex involves foreign currency risk, as the company exports most of its products from the UK while maintaining significant costs in Sterling, leading to potential profit volatility due to exchange rate fluctuations.

Teck Resources has a consensus rating of 'Hold' from 23 Wall Street analysts, with 14 hold ratings, 7 buy ratings, and 2 strong buy ratings.

Sequoia Economic Infrastructure stands out as an appealing investment option, with a compelling dividend yield of 8.91%. This infrastructure investment company supports essential public services and is characterized by low correlation to equities, providing a buffer against inflation. Analysts maintain a positive outlook, reflected in a B+ rating, indicating a Moderate Buy consensus based on multiple buy and hold recommendations.

SEQI funds essential public services and has low correlation to equities, making it a stable investment with tangible security.

The Sequoia Fund has a consensus rating of Moderate Buy, with 21 buy ratings and an average price target of $242.64.

SEQI has received two buy ratings and one hold rating, indicating a positive outlook from analysts.

SEQI operates as an investment trust managed by specialists in private infrastructure debt.

With a robust dividend yield of nearly 9.9%, Ashmore Group stands out as an attractive option for income-focused investors. The company has recently reported solid growth in assets under management, driven by significant net inflows across both fixed income and equities. Analysts rate Ashmore as A-, reflecting confidence in its future prospects, bolstered by an average price target suggesting further upside potential.

Ashmore has shown strong asset under management (AuM) growth and net inflows in both fixed income and equities, along with solid investment performance for clients.

Analysts have set an average twelve-month price target of GBX 150 for Ashmore Group, indicating a potential downside of -36.07% from the current price of GBX 234.63.

Ashmore's stock has been more volatile than the UK market, with a stable weekly volatility of 8% over the past year, higher than 75% of UK stocks.

Revenue is expected to grow at an average rate of 5.4% per year over the next three years, outpacing the 2.0% growth forecast for the UK Capital Markets industry.