Lloyds Stock And 2 UK Dividend Shares Yielding More Than 5%

Dividend Powerhouses with a 5%+ yield can be an appealing way to seek steadier income when headlines are dominated by shifting inflation data, energy price moves and changing interest rate expectations across Europe, the US and Asia. This screener focuses on companies where the dividend is not only high, but also covered, growing and relatively stable. That combination can matter when inflation and policy signals keep jumping between regions. In this article you will see three of the strongest candidates from the Dividend Powerhouses screener and how each one might fit into a long term income focused portfolio.

MONY Group (LSE:MONY)

Overview: MONY Group runs some of the UK’s best known comparison and money saving websites, helping households search for deals on insurance, credit, utilities, travel and cashback. Its brands like MoneySuperMarket, MoneySavingExpert and Quidco connect consumers with providers and earn fees for successful referrals and leads.

Operations: MONY Group generates most of its £448.1m revenue in the UK, with around £236.9m from Insurance, £110.5m from Money, £54.8m from Home Services, £49.3m from Cashback and the balance from segment adjustments and internal eliminations.

Market Cap: £1.1b

MONY Group appears in a high yield screen because it combines a 6.26% dividend with a business that is tightly focused on helping UK consumers save on essential bills. This service tends to stay relevant through different economic cycles. Earnings growth forecasts are moderate, and the company reports net margins around 18% and a 39% ROE, supported by digital platforms and member propositions like SuperSaveClub. Analysts report some upside potential and the shares trade below certain fair value estimates. However, marketing costs, regulatory pressure in energy switching and a reliance on external borrowings all introduce risks. The recent dividend increase, ongoing buybacks and board refresh indicate an active capital and governance approach that income-focused investors may want to examine more closely.

MONY Group’s high 6.26% yield and strong ROE raise a clear question: Is the income story fully reflected yet? Get the DCF valuation analysis for MONY Group to see what the market might be missing.

Lloyds Banking Group (LSE:LLOY)

Overview: Lloyds Banking Group is one of the UK’s largest high street banks, offering current accounts, savings, mortgages, credit cards, loans and digital banking to millions of retail customers, while also serving businesses with lending, transaction services and risk management under brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows.

Market Cap: £64.4b

Lloyds Banking Group stands out in a dividend focused screen because it combines a sizeable UK retail and commercial franchise with growing fee income from pensions, insurance and wealth products. Recent H1 2026 results show higher net income and earnings per share, while management is signalling confidence with a fresh interim dividend and a potential £1,000m buyback. At the same time, investors need to weigh UK focused risks, mortgage margin pressure and ongoing regulatory and conduct issues. The bank’s push into AI driven efficiency, digital channels and workplace pensions could slowly shift earnings away from plain lending and support more resilient dividends. The real question is how much of this transition is already reflected in the current share price and analyst targets.

Lloyds Banking Group’s shift toward fee income, AI efficiency and digital channels may be masking a very different earnings mix. Review the 3 key rewards and 2 important warning signs to see how the dividend story changes if one key assumption breaks.

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, real assets and smaller growth companies across the UK, Europe and Australia. It manages money for both institutional and retail investors, providing access to real assets and sustainable investment opportunities through equity and credit strategies.

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

Market Cap: £513.1m

Foresight Group Holdings appears in a dividend screen because it combines profitability, with profit margins around 27.7% and ROE near 47.8%, with a fee base from infrastructure and private equity. Earnings and revenue have both risen in the latest full year. The stock also sits on a P/E slightly below peers and an analyst fair value that is above the current price. Investors still need to weigh fee and performance risk, exposure to UK and European policy, and rising administrative costs. The question is whether the current valuation fully reflects this mix of income potential and execution risk.

Foresight Group Holdings combines high margins, strong ROE and real asset exposure with a P/E that sits below peers. Read the analysis report for Foresight Group Holdings to see how one underappreciated risk could change the income story.

The three dividend stocks in this article are only a starting point. The full Dividend Powerhouses screen currently highlights 44 more companies with equally compelling income stories and turnaround narratives inside the Dividend Powerhouses (3%+ Yield) screener. Use Simply Wall St to identify, filter and analyze the specific catalysts and dividend narratives that matter to you so you can focus on the highest conviction ideas for your watchlist.

Take Control of Your Investment Journey

If Foresight Group Holdings or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Dividends

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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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