UK high-yield dividend stocks can be a great source of passive income. With yields in excess of 6% on offer, it’s not hard to generate cash flow. 

Of course, high yields come with risks, so it pays to be selective when investing in these dividend stocks. With that in mind, here are five UK high yielders that look attractive from a risk/reward perspective. 

M&G

First up, we have FTSE 100 savings and investment company M&G (MNG:LON). It currently offers a yield of about 6.7%.  

That’s based on a dividend forecast of 21.1.p per share for 2026. Earnings per share (EPS) for the year are expected to be 28.2p, giving us a dividend coverage ratio of around 1.3 which is not high but also not worryingly low. 

What I like about this Footsie company is that it has long-term growth potential. Over the long run, M&G should benefit from rising stock markets and increased assets under management as well as growing demand for retirement solutions, all of which should support profits and the dividend payout. 

I also like the fact that it is consistently increasing its dividend. Since the company was split off from Prudential back in 2019, it has increased its payout every year, offering investors protection against inflation. 

Of course, financial services stocks can be volatile when equity markets are experiencing turbulence so share price volatility is a risk here. Another risk to consider is rising bond yields – these could have negative implications for assets under management. 

Overall though, I like the risk/reward proposition. With the stock trading on a P/E ratio of around 11, it looks a solid bet to me. 

Aviva

Another FTSE 100 financial services stock I like is Aviva (AV:LON). It currently offers a yield of around 5.8%. 

That’s based on a forecast of 41.6p per share for 2026. Analysts expect EPS of 55.9p, giving us a dividend coverage ratio of around 1.3.

A key attraction for me here is the fact that the company has streamlined itself in recent years, offloading non-core divisions. This has led to a pickup in profitability and the ability to return more cash to shareholders. 

Another attraction is the level of dividend growth. Over the last three years, Aviva has hiked its payout by about 27%, and analysts expect the growth to continue. 

The P/E ratio here is about 13. At that earnings multiple, I don’t see a huge amount of scope for share price gains. 

That said, analysts at Berenberg are quite bullish on Aviva. They recently stuck an 820p price target on the stock, implying upside of around 15%. 

Primary Health Properties 

Real estate investment trusts (REITs) often sport high yields due to the fact that they are required to pay out most of their profits to investors as dividends. And one stock I like in this space is Primary Health Properties (PHP:LON). 

It’s a healthcare-focused REIT that owns a portfolio of over 1,100 properties across the UK and Ireland. Most of these properties are GP surgeries. 

The dividend yield here is about 8.0%. That’s based on a forecast payout of 7.3p per share for 2026. 

Note that earnings per share are only expected to be 7.33p so dividend coverage is low. But that’s quite normal with a REIT given that they have to pay out most of their profits to investors. 

The big attraction of this stock is that it's quite defensive. Not only does it operate in a defensive industry but most of its income is government-backed (many of its properties are let to the NHS). 

On the downside, high interest rates are a risk. If rates move higher from here, we are likely to see share price weakness since borrowing costs will increase. 

LondonMetric Property 

A second REIT that could be worth checking out is LondonMetric Property (LMP:LON). It’s focused on logistics, convenience, entertainment and leisure, and healthcare.

The yield here is about 7.2%. That’s based on an expected payout of 12.9p per share for the year ending 31 March 2027. 

Earnings are expected to come in at 14.0p. So, we have a dividend coverage ratio of 1.1. 

A major attraction of this REIT is its blue-chip tenants. In the logistics space, its tenants include companies like Tesco, Argos, and Primark. 

Another positive attribute is long-term leases – some of its leases stretch out for decades. For example, at its Alton Towers Park property, there are 50 years remaining on the lease. 

Again, higher interest rates are a risk here. But with the stock already down more than 15% from its 2026 highs, I think a lot of risk is priced in. 

Polar Capital Holdings 

Finally, for a more adventurous pick in the UK high-yield dividend space, take a look at asset manager Polar Capital Holdings (POLR:LON). It currently offers a yield of about 6.2%. 

That’s based on a forecast payout of 46.2p per share for the financial year ending 31 March 2027. Earnings are expected to be 96.9p per share so we have a high dividend coverage ratio of 2.1. 

Now, active asset managers like Polar Capital are facing some challenges. Today, the majority of investors’ capital is going into passive funds. 

But I think this is reflected in the valuation already. At present, the P/E ratio here is just 7.7 meaning that the stock is very cheap. 

At that valuation, I think the company – which is big in the tech funds space – could be a takeover target for a larger investment manager. If it was to be acquired, investors would most likely be paid a decent premium for their shares.