3 UK Dividend Stocks Offering Income While Bond Yields Stay High

With global bond yields at multi year highs in markets like Germany and France, dependable income from dividends looks more appealing than ever. Cash in the bank may feel safer, but it can also feel stagnant when inflation and rate debates keep shifting. Dividend powerhouses with yields above 5% and well covered payouts offer a different kind of income story. This article highlights three standouts from that screen.

The three dividend powerhouses in this article are just a starting sample, and the full screen on Simply Wall St surfaced 45 more companies with income profiles and stories that may be just as compelling but are not covered here. If you want to go beyond a few headline picks and really identify which income ideas fit your portfolio, head straight into the Dividend Powerhouses (3%+ Yield) screener to filter, analyze, and focus on your highest conviction opportunities.

MONY Group (LSE:MONY)

MONY Group runs well known UK comparison and money saving sites such as MoneySuperMarket, MoneySavingExpert and Quidco, helping users find better deals across insurance, money, travel and home services. It generates most of its revenue from Insurance at about £237 million, with additional contributions from Money at £111 million, Cashback at £49 million and Home Services at £55 million, alongside smaller segment adjustments and eliminations. The company sits in the mid cap bracket with a market value of around £1.1b.

Investors looking for income and quality may find MONY Group worth a closer look. The company pairs a high dividend yield of about 6% with strong profitability, including return on equity near 39%, while steadily shifting more of its comparison platform onto higher productivity, more automated technology. At the same time, rising paid marketing costs, regulatory constraints in energy switching and a tilt toward lower margin contracts create real pressure on growth and margins that cannot be ignored. Recent share buybacks, a small dividend increase and ongoing analyst attention suggest an active story that income focused investors may want to understand in more detail before moving on to the next opportunity in this screen.

High yield, strong profitability and ongoing buybacks make MONY Group look like a straightforward income story. Yet the real twist may sit inside the analysis report for MONY Group

Screen for high yielding dividend powerhouses like MONY Group

MONY Group and the two other stocks in this list all surfaced from a single Simply Wall St screener, but the real edge is building a set of filters that fit your own income goals. Use our flexible Screener to mix yield, balance sheet strength and risk checks, or jump straight into our curated Investing Ideas for ready made shortlists that you can review in minutes.

Foresight Group Holdings (LSE:FSG)

Foresight Group Holdings is a London based asset manager focused on real assets and private equity, running funds that back renewable infrastructure, social assets and smaller growth companies for both institutional and retail investors. The bulk of its revenue comes from Real Assets at about £115 million, with Private Equity contributing around £50 million. The company sits in the mid cap range with a market value of roughly £556 million.

Income investors may find Foresight Group Holdings interesting because it combines a 3%+ yield focus with high reported profitability, including a 27.7% net margin and 47.8% return on equity, alongside analyst expectations for revenue and earnings growth that outpace the wider UK market. At the same time, the business leans heavily on UK and European infrastructure and renewables, depends on variable performance fees and carries higher funding risk, so rising costs or weaker AUM growth could quickly change the story. The key consideration is whether ongoing buybacks, strong fundraising momentum and expansion into higher fee products can offset those pressures and keep dividend potential attractive for patient holders.

Foresight Group Holdings sits at an interesting crossroads, with infrastructure funds, private equity and fees that can swing sharply when conditions change. Get the fuller picture inside the analysis report for Foresight Group Holdings

3i Group (LSE:III)

3i Group is a London based private equity and infrastructure investor that backs mature and growth companies across sectors such as consumer, healthcare, software and industrials, as well as long term infrastructure assets. Its earnings are heavily driven by the Private Equity segment, which contributed about £5.3b, with Infrastructure at £193 million and ferry operator Scandlines at £55 million, alongside smaller IFRS adjustments. The company is a large cap with a market value of roughly £27.9b.

Income focused investors may want 3i Group on their radar because it combines a 3%+ dividend yield and a long record of private equity investing with what looks like strong earnings quality and a large, growing Action retail stake that underpins returns. At the same time, the business leans on external borrowing rather than deposits, is exposed to currency swings and political uncertainty in key markets, and depends on sectors like automotive and recruitment where conditions can quickly change. With analysts seeing meaningful upside to the current share price and management buying back shares, the focus is on how sustainable that mix of income, growth and funding risk really is behind the headline numbers.

3i Group’s mix of private equity, infrastructure and that large Action retail stake can hide as much as it reveals. See how the story really stacks up in the analysis report for 3i Group

Seeking Alternatives Before The Crowd Moves

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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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