These British dividends have been flying in 2026. I think there may be more to come!
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Many investors buy dividend stocks for income, either to supplement their income or to supplement their pension. However, prices for some of the UK’s most popular models have also been fluctuating since the start of the year.
Let’s look at three of the best examples FTSE 100 and may continue to do so until the end of 2026.
Turnaround dividend stock
Anyway Vodafone‘s (LSE: VOD) track record when it comes to distributing cash to its shareholders, investors have long been inclined to look to the social media behemoth for a dividend fix. But lately, this market juggernaut has been behaving almost like a growth stock! A 15% gain in 2026 compares favorably with the 9% index and adds to the momentum seen in 2025.
Of course, an increase in the share price lowers the dividend yield. Currently, this stands at 3.6% – modest with other stocks in the FTSE 100 yielding up to 8%. But it is more than the bog standard index tracker can currently earn (2.9%).
After a difficult few years, investors seem to be liking the company’s strategy of selling off its non-core businesses and focusing more on market growth. Indeed, the completion of its merger with Three UK last year seemed to mark a turning point.
My biggest concern is still the huge debt burden. Yes, it is lower than a few years ago. But continued and fierce competition may make major reductions impossible for now.
Future proof
The mining giant was also charged Rio Tinto (LSE: RIO). Its shares have done even better – up more than 20% since early January – helped by rising copper prices.
Despite this good performance, there were a few volatile days in the mix. In the past few weeks, Rio’s price has fallen as it posted lower annual earnings and missed analyst expectations due to weak iron ore prices. This highlights the rough ride that all commodity investors can expect.
Still, the potentially huge demand for the red metal in the coming years as the world moves to cleaner energy sources certainly bodes well for Rio as a long-term revenue and growth play.
Also, the dividend yield is not what it used to be. But 4.6% is not bad at all. And while that cash flow can never be guaranteed, it looks like it will be covered by expected profits.
Reliable income
Produces 3.5%, energy supplier National Grid (LSE: NG.) completes our top three income stocks. Up 20% year to date, this ‘boring business’ has now hit a record high.
Now, I’ve always looked at this as a potential asset for any dividend oriented portfolio. In addition to the usual if-if-modest increase in the amount of money returned, our continued demand for gas and electricity makes this one of the most defensible businesses.
It’s not a slam-dunk investment, though. Like Vodafone, Gridi is heavily in debt, mainly due to the cost of maintaining its infrastructure. A price-to-earnings (P/E) ratio of 18 also makes National Grid shares the most expensive of the three.
As more money seems to be flooding into the UK and European stocks from across the pond, however, I think the price may continue to rise.
