FTSE 100 Stocks with the Highest Dividend Yield in 2026

Important: This article is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy, sell, or hold any security. Dividend yields are not guaranteed — companies can cut or cancel dividends at any time. Investing involves risk and you may get back less than you invest. Please consult a qualified financial adviser authorised by the FCA before making any investment decisions.

The FTSE 100 has a long-standing reputation as an income index. With an average dividend yield roughly double that of the S&P 500, it gives investors access to some of the most cash-generative businesses in the world.

However, a high dividend yield does not automatically indicate a sound investment. It can sometimes reflect a falling share price — itself a signal that the market expects the dividend to be cut. This article examines some of the highest-yielding FTSE 100 stocks in 2026 and the key factors investors typically research when evaluating dividend sustainability.

What Investors Look for in Dividend Stocks

Investors focused on dividend income typically research three areas:

1. Coverage — whether earnings or free cash flow comfortably exceed the dividend payment 2. Trend — whether the dividend has been maintained, grown, or cut over recent years 3. Business durability — whether the underlying business is structurally sound or in decline

Openbook's risk scores assess balance sheet strength and financial stability, which can complement dividend coverage analysis. A high yield combined with a high risk score warrants careful scrutiny. Use the Openbook stock screener to filter and compare.

High-Yielding FTSE 100 Stocks: Key Considerations

Legal & General (LGEN.L) — yield approximately 9%

Openbook Risk Score: 38 / 100

Legal & General is a large UK insurance and asset management group. Its annuity business generates predictable long-term cash flows from the pension de-risking market, and management has historically been clear about its dividend commitment.

Key factors to research: sensitivity to long-term interest rates; regulatory capital requirements; the outlook for bulk annuity demand from UK pension schemes.

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Imperial Brands (IMB.L) — yield approximately 8.5%

Openbook Risk Score: 52 / 100

Imperial Brands manufactures and sells tobacco and next-generation products (vaping, heated tobacco). Free cash flow conversion is high and the dividend was rebased and has been growing again.

Key factors to research: regulatory risk across key markets; the pace of combustible volume decline; whether next-generation product revenues can offset that decline over time.

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HSBC (HSBA.L) — yield approximately 7%

Openbook Risk Score: 45 / 100

HSBC is one of the world's largest banks, with significant operations in Hong Kong, mainland China, and Southeast Asia. It has been returning substantial capital via both dividends and buybacks following its strategic restructuring.

Key factors to research: exposure to China commercial real estate; the sustainability of net interest margins as rates normalise; geopolitical risk in Asia-Pacific.

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Vodafone (VOD.L) — yield approximately 6%

Openbook Risk Score: 68 / 100

Vodafone is a global telecommunications group currently undergoing significant restructuring. The dividend was cut in 2024 as management prioritised balance sheet repair.

Key factors to research: the pace of debt reduction; whether free cash flow improves sufficiently to support the current dividend level; the outcome of ongoing portfolio disposals.

Note: Vodafone's relatively higher risk score and recent dividend cut history make this a stock where dividend sustainability warrants particularly careful independent research.

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M&G (MNG.L) — yield approximately 9.5%

Openbook Risk Score: 44 / 100

M&G is a savings and investment business spun out of Prudential in 2019. It generates capital from its heritage life insurance book and asset management operations, and has maintained its dividend consistently since listing.

Key factors to research: the sensitivity of asset management revenues to market conditions; net fund flows; the runoff profile of the heritage book.

View M&G on Openbook →

Important Considerations for Dividend Investors

Yields change daily. The yields quoted above are approximate and will fluctuate as share prices move. Always verify current yield data before making any decisions.

Past dividends are not guaranteed. A company that has paid dividends for many years can still cut or suspend them — as demonstrated by many FTSE companies during 2020.

High yield can be a warning signal. When a yield is significantly above the market average, it is often because the share price has fallen — which may reflect investor concern about the business or the dividend itself.

Tax treatment varies. The tax treatment of dividend income depends on individual circumstances, the account type used (ISA, SIPP, GIA), and may change. Seek independent tax advice if relevant.

Use Openbook's stock screener to explore dividend data and risk scores across the FTSE 100 — and always conduct your own research or consult a professional adviser before investing.

This article is produced for educational purposes only and does not constitute a financial promotion, investment advice, or a personal recommendation. Past performance and past dividend payments are not reliable indicators of future results. The value of investments can fall as well as rise and you may get back less than you invest. Dividend yields shown are approximate and subject to change. Openbook Analytics is not authorised by the Financial Conduct Authority to provide investment advice.