Top FTSE 100 Dividend Stocks to Watch
The UK’s FTSE 100 index is composed of the 100 largest companies listed on the London Stock Exchange (LSE) by market capitalisation, many of which are dividend payers. In this article, we will explain what to consider when investing in dividend shares and highlight 3 top FTSE 100 dividend stocks to watch in 2025.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
FTSE 100 Dividend Shares Analysis
Before we look at some of the top FTSE 100 dividend stocks to watch this year, it is worth identifying some of the metrics to consider when picking dividend stocks.
- Dividend Yield
- Annual dividend per share as a percentage of current share price.
- Dividend Coverage Ratio
- How many times could the company pay its dividends with its current net income?
- Dividend Payout Ratio
- Annual dividend per share as a percentage of Earnings per Share (EPS).
- Continuous Dividend Payments
- Has the company got a proven history of continuously paying dividends?
- Payout Growth
- Have dividend payments been growing over time?
- Debt
- High debt can be a red flag for dividend stocks, as it may impact a company’s ability to make future payouts.
The Top FTSE 100 Dividend Stocks to Watch
In terms of growth, the FTSE 100 has been lacklustre in recent years, especially when compared with indices on the other side of the Atlantic.
However, the index does have a reputation for being home to many dividend paying stocks, some of which have generous yields and solid histories of payouts; although it’s important to note that future dividend payments are never guaranteed.
In the following sections, we’ll take a closer look at some of the top FTSE 100 dividend stocks in 2025.
British American Tobacco
British American Tobacco operates in more than 180 countries and is one of the world’s largest tobacco companies in terms of market capitalisation.
Tobacco companies traditionally generate lots of cash and, consequently, many have a reputation for rewarding shareholders with consistent dividend payments.
This is certainly the case with British American Tobacco, which has consistently paid dividends every year for more than 25 years and is regularly found on the list of FTSE 100 top dividend payers.
At the time of writing, 26 September 2025, the tobacco stock has a dividend yield of 6.1%, which is among the highest in the index. It also has a track record of increasing its payout, with dividend per share rising from 29p in 2000 to 240.25p in 2025.
However, it’s no secret that smoking is in long-term decline around the world. Whilst tobacco companies have been able to offset falling demand by raising prices, this strategy is unlikely to work forever.
Nevertheless, British American Tobacco has launched a number of non-cigarette, next generation products. Whilst these still only account for a small portion of revenue, less than 14% in the first six months of 2025, they are growing quickly.
Unilever
Unilever is a consumer goods company which owns and sells a wide range of globally respected brands including Hellmann’s, Dove, Magnum and Domestos.
The goods they sell are consumer staples such as food, drinks, hygiene products and cleaning products. These are things that people tend to buy without much thought, regardless of what is happening in the wider economy.
Consequently, Unilever’s products tend to receive fairly stable demand, making it well placed to generate earnings throughout the economic cycle (although this is not guaranteed).
This has helped Unilever build a decent track record of dividend payouts. Since 2009, the consumer goods company has either increased or maintained its dividend per share every year.
Whilst it’s dividend yield is not one of the highest in the index – although at 3.5% it’s above the FTSE 100 average of 3.3% - the consistency of payouts and fairly dependable stream of revenue could make it a FTSE 100 dividend share to consider.
National Grid
National Grid owns and operates electricity and natural gas transmission networks throughout Great Britain, where it enjoys a near total monopoly. It’s the only company licensed to transmit electricity in England and Wales, meaning all electricity generated in these countries has to pass through its network.
Regardless of what happens in the economy, it is very unlikely people will stop using electricity. Consequently, National Grid should be able to rely on a consistent flow of revenue for their much-needed services.
At the time of writing, National Grid shares have a dividend yield of 4.5% and it has consistently paid dividends for more than 20 years.
However, in 2025, National Grid’s dividend per share was cut for the first time this century. This dividend reset came after National Grid issued new shares in order to raise capital to upgrade its infrastructure.
Although the cut to payouts will not be ideal to dividend investors, the upgrade to infrastructure was required to help meet the extra electricity demand which will accompany the energy transition.
As well as helping to maintain the smooth running of electricity throughout the UK, it could also improve the future flow of earnings for National Grid.
FTSE 100 Highest Dividend Yield Stocks
Now that we have revealed the top FTSE 100 dividend stocks to watch, to round things off, we have compiled a list of the current ten FTSE 100 highest dividend yielding stocks.
Source: Dividenddata.co.uk. Date Captured: 26 September 2025. Past performance is not a reliable indicator of future results.
It’s important to remember that, whilst dividend yield might be an important metric to consider, it is also important to look beyond it.
A high dividend yield can be indicative of a falling share price, and share prices fall for a reason. If the company is struggling, then it may be wise to look elsewhere.
Moreover, if a company’s high dividend is unsustainable compared to its earnings, then it is possible that it will cut its payments in the future.
Other Articles You May Be Interested in:
Frequently Asked Questions
Does FTSE 100 pay dividends?
No, the FTSE 100 does not pay dividends as it is an index, not a company. However, the majority of the companies which make up the index do pay dividends.
When do FTSE 100 companies pay dividends?
This depends on the company in question. Most FTSE 100 dividend stocks pay dividends on a semi-annual or annual basis. However, some companies also make quarterly dividend payments.
Which FTSE 100 companies pay quarterly dividends?
HSBC, BP, Shell, Unilever, British American Tobacco, GlaxoSmithKline, Imperial Brands and Games Workshop all pay quarterly dividends at the time of writing. However, bear in mind that dividend policies are subject to change.
Which FTSE 100 shares pay the highest dividend?
At the time of writing, 26 September 2025, Legal & General Group has the highest dividend yield on the FTSE 100, yielding around 9.15%. However, please note that this is subject to change.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an analyst (hereinafter “Author”). The Author Roberto Rivero is a contractor for Admiral Markets. This content is a marketing communication and does not constitute independent financial research.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
