Best Dividend Stocks this February 2026 in the UK

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.

Taylor Wimpey plc stands out as a major UK house-builder, appealing to investors with its attractive dividend yield of approximately 8.56%. Despite a recent 1-year return of 2.48% and a challenging 5-year performance of -32.99%, the company's commitment to delivering new homes across Britain remains strong, supported by a solid dividend payout of 4.67 pence as of November 2025. With a "B" rating from analysts, it continues to be a noteworthy option for income-focused investors seeking reliable returns.

WPP plc stands out as a high-yielding option in the UK market, currently offering a dividend yield of approximately 9.22%. However, investors should note the stock has faced significant challenges, reflected in a 1-year return of -56.11% and a 5-year return of -59.21%. Recent downgrades from analysts, including Morgan Stanley and Exane BNP Paribas, indicate concerns over the company's revenue growth, which has fallen 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 its current price of GBX 319.30.

British American Tobacco plc stands out with an impressive dividend yield of approximately 5.76%, making it a compelling choice for investors seeking reliable income from a financially sound company. Recently, the stock has delivered notable returns, with a 37.71% increase over the past year and a striking 55.85% over five years. Analysts have mixed views, with JP Morgan upgrading its rating to Overweight, suggesting potential for further growth despite a recent downgrade from Argus Research to Hold.

BAT offers a dividend yield of 5.55%, indicating it is an attractive option for income-seeking investors, supported by moderate profitability with an EPS of 1.39 and a return on equity of 6.27%.

With a robust dividend yield of 7.98%, M&G stands out as a solid choice for investors seeking reliable income from a consistent dividend payer since 2020. The company has achieved impressive returns of 49.36% over the past year and 56.41% over five years, reinforcing its position as a financially healthy option in the FTSE 100. However, it's important to note that it currently holds a D+ analyst rating, suggesting that investors should exercise caution.

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