Highest Dividend Yield UK Stocks

What you're looking at

Dividend yield is one of the most watched numbers in UK equity investing — and one of the most misread. The formula is simple: annual dividend per share divided by the current share price, expressed as a percentage. But what that number means for a particular company is almost never simple.

A 9% yield can mean one of two things. Either the company is a genuine cash-generation machine with a rock-solid balance sheet, capable of sustaining a chunky payout through a downturn — the kind of thing you might find in mature utilities or incumbent banks. Or, more often, the yield is high because the share price has fallen sharply, and the market is quietly telling you the dividend is at risk. This second type is what analysts call a yield trap, and the LSE has plenty of them at any given moment.

The screen below shows the 30 LSE-listed companies with the highest trailing dividend yield by market cap above £100m. Before acting on any number here, two checks are worth doing: first, dividend cover — does the company earn enough to pay the dividend comfortably? A cover ratio below 1.5x is a yellow flag. Second, the trend — is the dividend growing, flat, or recently cut? A yield that looks attractive today can look very different after a profit warning. Use our dividend yield calculator to model the income from any holding.

Not financial advice. Yields are derived from trailing data and change daily with share prices. Always read the company's latest results and do your own research before making any investment decision.