3 Income Stocks With 5% Yields and Room for Dividend Growth

With producer prices in the US pointing to cooling headline inflation but stubborn core pressures, cash in the bank can feel like a moving target. Reliable income from Dividend Powerhouses with yields above 5% offers a different kind of comfort. In this article you will see three stocks from the Dividend Powerhouses screener that combine higher income potential with an emphasis on well covered and growing payouts.

The stocks covered below are just a small sample, and the full Dividend Powerhouses screen surfaces 44 more companies with income profiles and payout stories that are not covered here. To go straight to the source and identify, filter, and analyze your own high-conviction income ideas, head into the Dividend Powerhouses (3%+ Yield) screener.

MONY Group (LSE:MONY)

Overview: MONY Group is a UK based price comparison and cashback company that helps households cut everyday bills by matching them with deals on insurance, money products, home services and travel across sites like MoneySuperMarket, MoneySavingExpert and Quidco.

Operations: MONY Group generates most of its £448.1 million revenue in the UK, led by Insurance at £236.9 million, followed by Money at £110.5 million, Cashback at £49.3 million and Home Services at £54.8 million.

Market Cap: £1.04b

Income focused investors may find MONY Group interesting because it mixes a high dividend yield of about 6.21% with a business built on recurring online traffic and strong brands such as MoneySavingExpert and Quidco. The company is investing heavily in digital platforms and member propositions like SuperSaveClub, which is aimed at lifting customer engagement and average revenue per user over time. At the same time, high forecast returns on equity in the high 30s% and a recent buyback of around 1.85% of shares highlight a focus on shareholder returns. The trade off is rising marketing spend, regulatory pressure in energy switching and a lengthening cash conversion cycle, which are all worth watching closely if you want to go deeper into MONY Group’s story.

MONY Group’s high yield, strong brands and buyback program hint at a story in which cash returns and growth ambitions are pulling in the same direction. See how that balance looks in the analysis report for MONY Group

Build your own high yield shortlist

MONY Group and the other stocks in this article came from a single screen, but the real edge is in shaping filters around what matters most to you. Use our flexible Screener to mix yield, quality, valuation and risks into your own watchlist, or jump straight into our curated Investing Ideas for ready made starting points.

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a London based asset manager that runs infrastructure, private equity, venture capital and listed funds, with a focus on renewable energy projects, real assets and smaller growth companies across the UK, Europe and Australia for institutional and retail investors.

Operations: Foresight Group Holdings generates most of its £164.9 million revenue from Real Assets at about £114.8 million and Private Equity at about £50.1 million, with the United Kingdom contributing the majority of fees alongside smaller contributions from Australia and several European markets.

Market Cap: £551.2 million

Income investors may be drawn to Foresight Group Holdings because it ties a higher yield to fee based exposure to themes like energy transition and real assets, where assets under management can materially change future earnings power. Recent results show revenue of £164.92 million and net income of £42.83 million, with a P/E below peer and industry averages and analyst targets well above the current share price. At the same time, the model depends heavily on performance fees, higher cost growth and policy support for UK and European infrastructure, so funding risk and regulation matter. If you want a yield story backed by an expanding asset base rather than just cost cutting, this is a business worth a closer look.

Foresight Group Holdings links a higher yield with fee income tied to real assets, yet its P/E sits below peers. Before that gap closes or widens, scan the full analysis report for Foresight Group Holdings for what might be missing.

3i Group (LSE:III)

Overview: 3i Group is a London based private equity and infrastructure investor that backs mature and mid market companies across sectors such as consumer, healthcare, industrials, software and services, as well as owning infrastructure assets in utilities, transport and social infrastructure.

Operations: 3i Group generates most of its value from Private Equity at about £5.3b, with smaller contributions from Infrastructure at £193 million and ferry operator Scandlines at £55 million, alongside £32 million of unallocated IFRS adjustments.

Market Cap: £28.2b

3i Group appears in the Dividend Powerhouses screener because it couples a roughly 3% yield with very high net profit margins and a long history in private equity and infrastructure investing. The core Action retail investment is an important contributor to the current business profile, with plans for hundreds of new stores and refinancing that management expects to support margins, debt reduction and future distributions. At the same time, currency swings, leverage at Action, and pressure in sectors such as autos and North American white collar recruitment mean results can be sensitive to macro and sector shocks. For income-focused investors who want exposure to a broad portfolio of private assets rather than a single operating company, this mix of high quality earnings, buybacks and dividends may warrant closer consideration.

3i Group’s mix of high margin earnings, buybacks and that core Action stake hints at a story investors may not have fully priced in yet. See how the growth narrative stacks up in the analyst forecasts for 3i Group and where the key pressure points could emerge next.

Seeking Fresh Alternatives Before Others?

Some stocks sit on the runway before a breakout while others quietly lose momentum. Use that window while it still matters and hunt for fresh ideas before the crowd arrives. Act now.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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