UK dividend stocks are on the rise in 2026. I think there may be more!

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Most investors buy dividend stocks to generate passive income, whether to supplement a salary or supplement a pension. However, share prices of some of the UK’s most popular companies have also soared since the start of the year.

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Let’s look at three examples that outperform FTSE100 and may continue to do so until the end of 2026.

Rotating dividend shares

Despite Vodafon(LSE: VOD) has had a checkered history of paying out cash to its owners, investors have long favored the telecommunications giant when it comes to setting a dividend. However, lately this market giant has been behaving almost like a growth stock! An raise of 15% in 2026 compares favorably with the 9% raise in the index and deepens the super momentum seen in 2025.

Of course, the raise in the share price lowered the dividend yield. It currently stands at 3.6% – quite modest considering that other FTSE 100 shares reach 8%. But that’s more than the standard swamp indexing tracker currently earns (2.9%).

After a hard few years, investors appear to have warmed to the company’s strategy of selling its non-core businesses and focusing more on emerging markets. Indeed, the completion of the merger with Three UK last year seemed to mark a turning point in sentiment.

My main concern remains the huge debt. Yes, it is lower than a few years ago. However, continued and fierce competition may make significant reductions unlikely for now.

Future proof

There is also a mining giant for a fee RioTinto (LSE: RIO). The company’s shares are performing even better – they have increased by over 20% since the beginning of January – supported by the rising copper price.

Despite this great performance, there were a few unstable days. Rio’s price fell a few weeks ago as annual earnings remained flat and missed analyst expectations due to weaker iron ore prices. This highlights the bumpy ride that all commodity investors can expect.

Still, the likely huge demand for the red metal in the coming years as the world migrates towards cleaner energy sources certainly bodes well for Rio, both as a long-term source of income and growth.

Again, the dividend yield is not what it used to be. But 4.6% isn’t that bad at all. And while these cash payouts can never be guaranteed, it looks like they will be covered by your expected profit.

Secure income

Efficiency 3.5%, electricity supplier National Network (LSE: NG.) rounds out our three profitable stocks that are performing well. This traditionally “boring business” has so far achieved record growth of 20%.

I’ve always considered it a potential cornerstone of any dividend-focused portfolio. In addition to regular, if modest, increases in the total amount of cash refunded, our ongoing demand for gas and electricity makes it one of the most defensive companies in the market.

However, this is not an instant investment. Like Vodafone, Grid has a huge debt, mainly due to the costs of maintaining its infrastructure. A price-to-earnings (P/E) ratio of 18 also makes National Grid shares the most costly of the three.

However, as more money appears to be flowing into UK and European shares from overseas, I think the price could continue to rise.

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