3 British Dividend Stocks With Up To 4% Yield

Global bond yields are climbing as the IMF warns that record public debt may push governments toward tighter budgets. Income that depends on high risk growth stories can feel fragile when borrowing costs bite. Reliable UK dividend payers that keep lifting their payouts, while sitting in the 2% to 5% yield range, offer a different way to seek returns. This article highlights three such stocks from that universe.

The three companies below are a sample of this theme, while a full screen of Type 2 dividend ideas on Simply Wall St surfaced 7 more businesses with equally compelling stories that are not covered here. To size up that wider field and identify which income plays match your risk profile and yield target, head straight into the Growing Dividend Payers with 2-5% yield screener

Coca-Cola HBC (LSE:CCH)

Coca-Cola HBC is one of the key stocks in this screener because its core bottling franchise converts everyday beverage purchases into repeatable cash flow, which in turn helps support a dividend in the 2% to 5% yield range.

Coca-Cola HBC produces, sells, and distributes Coca-Cola drinks and other non-alcoholic beverages, with essentially all of its €12.2b in revenue coming from this franchise-led ready-to-drink category, and the group carries a market value of about £15.5b.

"The accelerated expansion and strong volume growth in high-potential emerging markets, particularly Nigeria and Egypt, position Coca‑Cola HBC to benefit from rising urbanization and a growing middle class, which could support future revenue and earnings."

The next phase of the Coca-Cola HBC story may hinge on how one rising cost pressure interacts with that growth engine.

That cost squeeze is exactly where the opportunity and risk start to separate, and the full narrative for Coca-Cola HBC connects those pressures to Coca-Cola HBC's dividend and cash engine in detail.

RELX (LSE:REL)

RELX leans into the Type 2 dividend theme through a mix of information analytics businesses, with its Scientific, Technical & Medical subscriptions adding recurring, high-margin income that can help support a growing payout alongside the rest of the £45.2b group.

RELX generates about £3.5b from Risk, £2.8b from Scientific, Technical & Medical, £1.9b from Legal and £1.2b from Exhibitions, plus £367m from print related activities, giving investors a diversified revenue base behind its dividend profile.

"RELX's continued rollout and integration of advanced AI-powered analytics and decision tools across its Risk, STM, and Legal segments is deepening customer value, increasing product adoption, and supporting higher-margin, recurring digital revenues, with management expecting operating profit growth to outpace revenue growth."

What happens to RELX's earnings rhythm if a single key assumption about how customers value those data rich subscriptions starts to shift?

If that assumption breaks, the feedback loop flips. The full narrative for RELX shows how RELX’s subscription engine could still keep earnings momentum accelerating.

3i Group (LSE:III)

3i Group leans into the Growing Dividend Payers with 2–5% yield theme through its mix of private equity holdings and infrastructure assets that aim to turn stable cash generation into a dependable, growing dividend stream for shareholders.

3i Group is a London based private equity and infrastructure investor, drawing about £5.3b from Private Equity, £193 million from Infrastructure and £55 million from Scandlines, with a market value around £24.0b supporting its role as a Type 2 dividend payer.

"Action is showing substantial growth, with net sales up 21% and plans to open approximately 350 new stores by the end of the year, likely contributing to revenue growth and improved net margins through operational efficiencies."

What happens to 3i Group’s dividend appeal if a single assumption about how that cash rich portfolio supports future payouts starts to shift?

If that payout question is on your mind, the full narrative for 3i Group shows how 3i Group’s accelerating Action story and portfolio risks could reshape its long term income profile.

Seeking Fresh Alternatives Before They Fly

Markets move fast and the most interesting stories often break out quietly. Spot fresh momentum, find what others have not caught yet, and act while it still matters. Get in early.

• Track income workhorses built on strong cash positions by scanning the curated list of solid balance sheet and fundamentals (9 results) before those balance sheet strengths are fully priced in.
• Hunt for growth stories still flying under the radar using a focused set of 5 high quality undiscovered gems that zero in on quality and fundamentals.
• Ride structural trends with carefully filtered 43 power grid technology and infrastructure stocks that spotlight companies tied to long term upgrades in electricity networks worldwide.

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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