Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In July 2026, the top-performing dividend-payers included specialty industrial machinery firm Rotork ROR, specialty business services firm Mitie Group MTO, and advertising agency WPP WPP.
To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar UK Index—which measures the performance of the UK’s broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.
The Best-Performing UK Dividend Stocks of July
- Rotork ROR
- Mitie Group MTO
- WPP WPP
- Bridgepoint Group BPT
- QinetiQ Group QQ.
- RS Group RS1
- Sage Group SGE
- Vodafone Group VOD
- BP BP.
- Greggs GRG
How Have Dividend Stocks Performed?
The Morningstar UK Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying stocks listed in the UK, rose 3.67% over the past month and 13.89% over the past year.
The overall UK stock market, as measured by the Morningstar UK Index, has gained 3.81% on the month and 21.85% on the year.
Yields and Metrics for July’s Best-Performing Dividend Stocks
Rotork
Specialty industrial machinery firm Rotork gained 64.59% in July and climbed 51.87% over the past 12 months. The stock’s £4.86 price gives it a forward dividend yield of 1.71%. Rotork pays investors a trailing 12-month dividend of 8p per share. The stock has a quantitative Morningstar Rating of 2 stars.
Mitie Group
Specialty business services firm Mitie Group climbed 40.63% in July and rose 50.21% over the past 12 months. At £2.07, its stock has a forward dividend yield of 2.17% and a trailing 12-month dividend of 4p per share. It has a quantitative Morningstar Rating of 3 stars.
WPP
Advertising agency WPP gained 26.68% in July and dropped 23.49% over the past 12 months. The stock’s £2.99 price gives it a forward dividend yield of 5.02%. WPP pays investors a trailing 12-month dividend of 15p per share. With a fair value estimate of £3.08 per share and no economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.
Bridgepoint Group
Asset management firm Bridgepoint Group rose 22.18% in July and gained 0.67% over the past 12 months. Trading at £3.21, its stock has a forward dividend yield of 2.99%. Bridgepoint Group pays investors a trailing 12-month dividend of 10p per share. The stock has a quantitative Morningstar Rating of 4 stars.
QinetiQ Group
Aerospace and defense company QinetiQ Group climbed 21.69% in July and rose 4.02% over the past 12 months. At £5.06, its stock has a forward dividend yield of 2.17% and a trailing 12-month dividend of 11p per share. It has a quantitative Morningstar Rating of 4 stars.
RS Group
Industrial distributor RS Group rose 20.64% in July and gained 29.59% over the past 12 months. Trading at £7.01, its stock has a forward dividend yield of 3.26%. RS Group pays investors a trailing 12-month dividend of 23p per share. The stock has a quantitative Morningstar Rating of 4 stars.
Sage Group
Software application firm Sage Group climbed 19.26% in July and fell 18.39% over the past 12 months. At £9.73, its stock has a forward dividend yield of 2.31% and a trailing 12-month dividend of 22p per share. The stock, which has a narrow economic moat, is trading at a 16% discount to its fair value estimate of £11.60 per share. It has a Morningstar Rating of 4 stars.
Vodafone Group
Telecom services firm Vodafone Group rose 18.32% in July and gained 48.56% over the past 12 months. Trading at £1.18, its stock has a forward dividend yield of 3.38%. Vodafone Group pays investors a trailing 12-month dividend of 4p per share. The stock, which has no economic moat, is currently trading at a 9% discount to its fair value estimate of £1.30 per share, leaving it with a Morningstar Rating of 3 stars.
BP
Oil and gas firm BP gained 18.28% in July and climbed 42.64% over the past 12 months. The stock’s £5.53 price gives it a forward dividend yield of 4.5%. BP pays investors a trailing 12-month dividend of 25p per share. With a fair value estimate of £5.30 per share and no economic moat, the stock is fairly valued and has a Morningstar Rating of 3 stars.
Greggs
Restaurant Greggs climbed 17.50% in July and rose 23.35% over the past 12 months. At £18.80, its stock has a forward dividend yield of 3.67% and a trailing 12-month dividend of 69p per share. It has a quantitative Morningstar Rating of 1 star.
What is the Morningstar UK Index?
The Morningstar UK Index measures the performance of the UK’s broad regional markets, targeting the top 97% of stocks by market capitalization. The index does not incorporate environmental, social, or governance criteria.
What is the Morningstar UK Dividend Yield Focus Index?
The Morningstar UK Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.
It’s a subset of the Morningstar UK Index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.
From there, the 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to find more top-performing or cheap dividend stocks can do the following:
- Read our monthly analysis of the latest dividend moves among the top FTSE 100 dividend payers.
- Use our Morningstar Stock Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
- Review the full list of dividend stocks included in the Morningstar UK Dividend Yield Focus Index index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
- When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
- Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
