3 UK Dividend Stocks Yielding Above 5% With Steady Income Potential

With global bond yields climbing as investors reassess long term borrowing costs, steady income from equities is back in focus. Reliable dividend cheques can feel more valuable when bond markets look choppy and cash rates may not keep up with inflation. This article looks at the Dividend Powerhouses screener and highlights three stocks with yields above 5% that combine income potential with an emphasis on dividend stability.

The three high yield stocks below are just a starting sample, and the full Dividend Powerhouses screen surfaced 43 more companies with equally compelling narratives that are not covered here. To identify, filter and analyze those higher conviction income ideas directly, go straight to the Dividend Powerhouses (3%+ Yield) screener.

MONY Group (LSE:MONY)

Overview: MONY Group runs well known UK comparison and cashback platforms such as MoneySuperMarket, MoneySavingExpert and Quidco. It earns mainly advertising and lead generation fees when customers switch products or complete purchases. These recurring cash flows from insurance and money comparison services are a key reason the company supports a higher yield dividend profile within the Dividend Powerhouses theme.

Operations: MONY Group generated £448.1 million of revenue in the UK, led by Insurance at £236.9 million and Money at £110.5 million, with smaller contributions from Home Services at £54.8 million and Cashback at £49.3 million.

Market Cap: £1.0b

Investors looking at dividend income may find MONY Group interesting because its 6.17% yield is backed by recurring cash generation from comparison and cashback platforms that millions of UK consumers use to manage everyday bills. Recent half year results show revenue of £227.1 million and net income of £46.5 million. There was also an interim dividend increase and a completed share buyback of 9.7 million shares, which together indicate a focus on returning cash to shareholders. At the same time, rising marketing costs, margin pressure from lower margin contracts and regulatory limits in areas like energy switching are real headwinds. The balance between those strengths and risks is where the story becomes more nuanced for dividend focused investors.

MONY Group’s 6.17% yield and steady comparison cash flows can look attractive; however, the real focus is on how sustainable that payout might be. Get the MONY Group financial health report

Build your own high yield dividend shortlist

MONY Group and the two other stocks in this list all surfaced from a single Simply Wall St screen, but the real opportunity is tailoring filters to what matters most to you. Use our flexible Screener to combine dividend strength, balance sheet quality and risks, or tap into any of our curated Investing Ideas for ready made starting points.

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a UK based asset manager that runs funds investing in income generating infrastructure such as renewable energy, social and transport projects, alongside private equity and venture capital strategies. Its Real Assets arm manages long term infrastructure portfolios that aim to deliver recurring cash returns, which helps underpin the dividend focus that places Foresight in the Dividend Powerhouses screen.

Operations: Foresight Group Holdings generated £114.8 million of revenue from Real Assets and £50.1 million from Private Equity, with most income coming from the United Kingdom at £126.4 million and a smaller but meaningful contribution from Australia at £25.7 million.

Market Cap: £551 million

Income focused investors may find Foresight Group Holdings interesting because its dividend is tied to fee income from infrastructure funds that target long term, cash paying assets. Recent results show higher sales and net income, while share buybacks since 2025 indicate a clear capital return framework. The other side of the story is reliance on performance fees, external borrowing and policy support for UK and European renewables, which could affect payouts if fundraising or asset performance changes. Understanding how Foresight manages those trade offs is important when assessing the strength and resilience of its dividend profile.

Foresight Group Holdings sits at the crossroads of long term infrastructure income and market skepticism about fees and borrowing. Get the full picture from the analysis report for Foresight Group Holdings to see what the dividend story may be hiding.

3i Group (LSE:III)

Overview: 3i Group is a London based private equity and infrastructure investor that backs mature, cash generative companies and income producing assets, then returns part of those cash flows to shareholders through dividends. Its Dividend Powerhouses fit comes from the recurring income it receives from infrastructure holdings such as 3i Infrastructure plc and portfolio company dividends, which help support a well covered payout rather than relying purely on one off asset sales.

Operations: 3i Group generates most of its revenue from Private Equity at £5.3b, with additional contributions from Infrastructure at £193 million, Scandlines at £55 million and £32 million from unallocated IFRS adjustments.

Market Cap: £28.0b

Income investors may want to look closely at 3i Group because its 3.03% dividend is supported by high quality earnings and recurring cash flows from infrastructure and private equity holdings, not just short term trading gains. The company is increasing its stake in Action and focusing on resilient sectors such as private label and healthcare, which ties into the screen’s preference for dividends that can be kept stable and well covered. At the same time, there are real risks from currency swings, higher leverage after refinancings and exposure to weaker areas like automotive and North American recruitment. Recent buybacks and a higher final dividend indicate management confidence in future cash generation. However, the full balance of strengths and vulnerabilities needs closer inspection.

3i Group’s combination of recurring infrastructure income and private equity gains can obscure what really drives that 3.03% dividend. See how the analyst forecasts for 3i Group compares with the risks that may not be reflected in the headline yield.

Seeking Fresh Alternatives Before Others Do

Fresh opportunities move quickly. By the time most investors react, the early momentum, breakout potential and best entry points can be gone. Scan these under the radar ideas now and consider them before they become widely followed.

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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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