Dividend stocks are very popular investments in the UK. It’s not hard to see why – these stocks offer a regular income stream alongside the potential for long-term capital growth.

Interested in adding some dividend stocks to your Stocks and Shares ISA or SIPP? Here are five top dividend payers that could be worth considering. 

M&G

Starting with a high-yielder in the FTSE 100, we have M&G (MNG:LON). It’s a leading savings and investment company that has around 4.5m retail clients and over 900 institutional clients globally. 

It currently offers a dividend yield of around 6.9%. That’s one of the highest yields in the Footsie. 

One thing I like about this stock is that it’s a reliable dividend payer with a track record of consistent payout increases. Since the company was split off from Prudential back in 2019, it has increased its payout every year (rising payouts offer protection against inflation). 

I also like the fact that, unlike many other high yielders in the Footsie, the company has long-term growth potential. Over the long run, M&G should benefit from rising stock markets, increased assets under management, and growing demand for retirement solutions, which should help it continue to increase its dividend payouts.  

On the downside, stocks in the Financial sector can be more volatile than the broader market. This is certainly the case here – M&G has a beta of 1.5 meaning that it is about 1.5 times as volatile as the market as a whole.

An additional risk to be aware of with M&G is rising bond yields. If bond yields keep rising (and bond prices keep falling), it could have implications for assets under management. 

HSBC

Also in the Financial sector, I like HSBC (HSBA:LON). A blue-chip FTSE 100 stock, it’s one of the biggest banks in the world with a market cap of around £240bn today. 

The dividend yield on offer here is around 4.6% at present. So, this isn’t a super high yielder. 

However, dividend coverage (the ratio of earnings per share to dividends per share) is high, meaning the payout looks secure. And analysts expect decent growth in the payout in the years ahead. 

Next year, HSBC’s dividend payout is expected to rise to 95 cents per share from 85 cents in 2026. At today’s share price and GBP/USD FX rate, 95 cents translates to a yield of about 5.2%. 

A major attraction of this bank from an investment perspective is that it operates across a range of areas including retail banking, commercial banking, investment banking, trading, and wealth management. So, it has many ways to generate revenue. 

The valuation is also quite attractive. Looking at earnings forecasts for 2027, the P/E ratio is currently under 10 so there’s scope for earnings multiple expansion. 

Of course, there are no guarantees that HSBC shares will be a good investment from here. There are plenty of risks that could negatively impact the bank stock including adverse interest rate movements, an economic slowdown in Asia, and regulatory intervention. 

Overall though, I like the set-up at current levels. With the share price having dropped in recent months, I think a nice entry point has emerged. 

National Grid 

Utilities companies can be excellent dividend stocks due to the stable nature of their operations and one name I like in this sector is National Grid (NG:LON). It’s an electricity and gas company with operations in the UK and the Northeast US. 

It currently offers a yield of around 4.3%. Dividend coverage is solid at 1.8 times, and looking ahead, the company is aiming to grow its payout in line with UK CPIH inflation.

One key pillar of the investment case here is that National Grid is targeting earnings growth 8-10% per year through FY31. Higher earnings should boost the share price over time. 

Another is that the company has a natural monopoly in the UK’s energy sector as it owns and operates the core high-voltage electricity transmission network across Great Britain. This should provide highly predictable, inflation-linked revenues and insulated earnings. 

A risk to consider with National Grid shares is potential government intervention. Here, there’s some uncertainty because UK prime minister Andy Burnham has advocated for stronger public control of UK water and energy utilities. 

Rising bond yields are also potentially a risk. Utilities stocks are often seen as an alternative to bonds due to their stability and income, so when bond yields rise to attractive levels, capital often flows from the former to the latter. 

GSK

Healthcare can also be a nice source of dividend income. In this sector, I like the look of pharma giant GSK(GSK:LON) today. 

Its dividend yield is about 4%. Dividend coverage is strong at around 2.5 times, signalling that the payout is secure. 

One major attraction of this dividend stock is that it's defensive. No matter what’s happening in the economy, demand for medicines and vaccines tends to remain robust. 

The valuation is also attractive. Currently, the P/E ratio here is only around 10, so the stock is quite cheap at present.  

It’s worth pointing out that net debt of around £15bn is a risk with this stock. Especially with yields rising. 

All things considered, however, I see the proposition here as compelling. Note that City analysts see 20% upside to the share price so there’s potential for strong total returns. 

Keystone Law 

Finally, those interested in small-cap dividend stocks may want to check out Keystone Law (KEYS:LON). It’s a tech-enabled platform-based UK law firm. 

The yield here is currently about 5%. However, we could see higher yields in the years ahead as this company is continually increasing its payout (and paying special dividends). 

What stands out to me here is the quality of this business. This is a founder-led company with a track record of revenue and earnings growth, a high return on capital employed (ROCE), and a strong balance sheet. 

I also like the fact that the company is performing really well at the moment. In September, it posted a 22.5% increase in revenue for the six months ended 31 July 2026 and advised that it expects to deliver FY2027 revenue comfortably ahead and profits materially ahead of market expectations. 

Now, AI disruption is potentially a risk with this dividend stock. Today, people are turning to generative AI apps like Claude to draft basic legal documents. 

However, with the stock trading on a P/E ratio of 16, I like the risk-reward skew. I see the potential for attractive total returns here.