3 UK Dividend Stocks With Yields Above 5% For Higher For Longer Rates

Central banks keep warning that inflation risks remain stubborn, and policy makers talk about interest rates staying higher for longer. That backdrop keeps a spotlight on cash returns that land in your account today instead of relying only on share price moves. This article looks at the Dividend Powerhouses screener and highlights three stocks with yields above 5% and a focus on covered, growing payouts.

The three stocks in this article are just a sample, and the full Dividend Powerhouses screen surfaces around 40 more companies with equally detailed dividend stories that are not covered here. To analyze, compare and identify your own highest conviction ideas, head straight into the Dividend Powerhouses (3%+ Yield) screener.

MONY Group (LSE:MONY)

Overview: MONY Group is a UK based price comparison and cashback company, best known for brands like MoneySuperMarket, Quidco and TravelSupermarket that help households find cheaper deals on insurance, money products, utilities and travel. Its established dividend policy is backed by these cash generative platforms, which supports its place in a high yield, well covered Dividend Powerhouses screen.

Operations: MONY Group generates most of its £448.1 million UK revenue from Insurance at £236.9 million, with additional contributions from Money at £110.5 million, Cashback at £49.3 million and Home Services at £54.8 million.

Market Cap: £1.0b

For dividend focused investors, MONY Group offers an interesting mix of a high 6.2% yield, a long running policy of cash returns and a business model built on recurring traffic to its comparison and cashback brands. Recent half year results showed modest revenue and earnings progress alongside an increased interim dividend and ongoing buybacks, which together indicate confidence in cash generation. At the same time, reliance on higher risk external borrowing and recent pressure on margins, including from marketing spend and lower margin contracts, create genuine questions about how resilient those payouts might be if conditions tighten. The full picture of how MONY Group manages generous distributions alongside these funding and earnings pressures is where the main opportunity and the key risks start to emerge for dividend investors.

MONY Group’s rich 6.2% yield and active buybacks could be masking a more complex trade off between funding, margins and long term dividend headroom. Get the fuller picture in the MONY Group financial health report

4imprint Group (LSE:FOUR)

Overview: 4imprint Group is a direct marketer of promotional products such as branded apparel, drinkware, office items and awards, selling mainly to corporate, government, educational and nonprofit customers across North America, the UK and Ireland. This repeat order, promotional merchandise focus is what supports 4imprint’s role in a Dividend Powerhouses screen, as its established cash flows fund consistent and growing dividend payments.

Operations: 4imprint generates the bulk of its revenue in North America at about US$1.33b, with a smaller contribution of roughly US$26 million from the UK and Ireland.

Market Cap: £1.3b

Income focused investors may want to watch 4imprint Group because it combines a roughly 4% yield with cash flows from a long established promotional products business that sells to a broad mix of organisations. Recent half year results showed sales of US$666.4 million and net income of US$43.5 million, which kept the interim dividend flat at 80 cents per share and underlined the importance of earnings quality and cash conversion. Forecasts for modest growth and management’s guidance for revenue and earnings above current expectations describe a company aiming for steady rather than spectacular progress. The real question is how comfortably future cash flows cover that dividend if margins remain under pressure.

4imprint Group’s steady 4% yield and repeat order model hint at a story that is still unfolding. See how cash conversion, dividend cover and earnings quality connect in the analysis report for 4imprint Group

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a London based asset manager that runs income focused infrastructure funds, particularly in renewable energy projects like solar, wind and biomass, alongside private equity and venture strategies. These long term, contracted assets are designed to generate relatively steady cash flows that can support regular dividends, which is why Foresight Group features in a Dividend Powerhouses screen.

Operations: Foresight Group earns about £114.8 million from Real Assets and £50.1 million from Private Equity, with most revenue tied to fee income from managing infrastructure and investment funds.

Market Cap: £550.1 million

Foresight Group Holdings gives income focused investors a combination of earnings from infrastructure assets, a 5%+ yield and capital returns through sizeable share buybacks across 2026. Growth in Real Assets and new private credit offerings points to an expanding pool of fee based cash flows that can support dividends, while recent full year results showed revenue of £164.9 million and net income of £42.8 million. However, rising administrative costs, reliance on external borrowing and exposure to changing renewables policy and regulation could pressure margins if fundraising or performance fees slow. The balance between that infrastructure income and these risks is an important consideration for dividend investors.

Foresight Group’s infrastructure earnings and 5%+ yield could be only part of the story. The bigger question is how future fee income and distributions stack up in the analysis report for Foresight Group Holdings

Seeking Alternatives Beyond Dividend Powerhouses

Fresh ideas often move first. By the time a trend looks obvious, the early momentum can be gone and entry points less attractive. Scan these under the radar opportunities and consider them promptly.

• Identify cash generative companies before they hit every watchlist by running the list of solid balance sheet and fundamentals (20 results) while they are still flying under most investors' radar.
• Explore resilient cash returns that may help offset inflation pressures by checking the 6 dividend fortresses while yields and coverage still look compelling.
• Assess the next infrastructure and electrification trend by screening the 38 power grid technology and infrastructure stocks while these potential beneficiaries are still in the early stages of momentum.

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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