3 dividend gems tipped to outpace Rolls-Royce on the UK stock market in 2026


There’s no denying that Rolls-Royce had one of the most spectacular runs on the UK stock market the past two years. But now with an eye-wateringly high price, analyst’s expect little-to-no growth from the shares in the coming 12 months.

So here are three other stocks to consider with far higher growth forecasts. And not only that – they each pay a meaty dividend to boot!

Number three written on white chat bubble on blue background

Image source: Getty Images

ICG

ICG‘s (LSE: ICG) a specialist lender and asset manager, helping big investors put money into private credit and infrastructure deals. That means it earns steady fees, plus extra income when investments do well. With a near-5% yield backed by growing profits and assets under management, it looks appealing for both income and capital growth.

The best part? It boasts a huge (31-year-long) track record of uninterrupted dividend payments.

A key growth driver is that pension funds and insurers are still shifting money from bonds into private credit, which suits ICG’s operations. On the flip side, a nasty recession or credit crunch could hit deal-making and increase defaults, putting pressure on earnings and dividends.

Still, for patient investors comfortable with potential market volatility, I think it’s worth a serious look.

Barratt Redrow

Barratt Redrow‘s (LSE: BTRW) a housebuilding giant formed from the Barratt Developments and Redrow amalgamation, giving it huge coverage across the UK. It has an attractive 4.5% yield and stands to benefit if mortgage rates keep easing and buyer confidence continues to recover.

The long-term demand for family homes coupled with government pressure to increase housing supply supports the growth narrative.

Still, property’s a cyclical business. If the UK slips back into a downturn, sales and profits (along with dividends) could suffer. Build-cost inflation, planning delays, and any change to housing policy are extra headaches.

For investors ready to hold through a cycle with a fews ups and downs, it could be an opportunity to harness a gradual housing recovery with income on top.

DCC

DCC‘s (LSE: DCC) a diversified distributor, mainly in energy (like LPG and fuel), but also healthcare and technology products. Think of it as the middleman keeping lots of everyday services running, which helps smooth profits over time.

Like ICG, it boasts a 31-year payment history, with many years of steady increases and a 4% yield that’s well-covered by cash flow. There’s moderate growth potential from acquisitions and the shift into cleaner energy solutions, such as renewables-linked services.

On the risk front, demand for traditional fuels will slowly fall as the world decarbonises, so management has to keep up with innovative new business ideas. If you like dependable, boring-in-a-good-way companies and can live with some acquisition risk, DCC looks a sensible candidate to consider for a long-term UK income portfolio.

Looking beyond headlines

ICG, Barrett Redrow and DCC are three lesser-known FTSE 100 stocks that seldom make headlines. But they’re just the kind of dull companies that can quietly compound inside a retirement-focused ISA.

Spectacular comeback stories like Rolls-Royce might dominate headlines for short periods, but in the long-run, the tortoise here wins the race. For investors with a 20-30-year outlook, reliable (and reinvested) dividends can make all the difference.



Source link

Anthropologie Spring Shoe Sale Has Ballet Sneakers & Sandals for 30% Off

Jaidyn Alexis Reacts To Blueface & Nevaeh Akira Pregnancy (Vid)

Leave a Reply

Your email address will not be published. Required fields are marked *