Are you trying to build a second income on the stock market? If so, dividend stocks can be a solid starting point.
Here are three UK dividends stocks that could supercharge an income portfolio in the coming three years.
NatWest
NatWest Group (LSE: NWG) stands out as a highly compelling dividend to consider in the FTSE 100. It raised total dividends by 51% in 2025 to 32.5p per share, backed by profits up 24% last year.
Looking ahead, it’s guided for return on tangible equity (RoTE) above 17% in 2026 and over 18% by 2028. That should provide strong earnings coverage for rising payouts.
However, if UK interest rates fall faster than expected, RoTE would fall too, putting dividends at risk.
Analysts forecast dividends of 29p in 2025, 32.7p in 2026, and 36.5p in 2027, implying a forward yield approaching 7% by 2027.
JPMorgan expects NatWest to shift to a 50% ordinary dividend payout policy from 2026 (versus 40% consensus). That could deliver an 8% cash yield and roughly 11% total yield, supported by a £750m buyback programme.
Bellway
FTSE 250 housebuilder Bellway (LSE: BWY) has one of the strongest dividend growth profiles among UK mid-caps. Forecasts indicate dividends rising from 70p in 2025 to 78p in 2026 and 93.9p in 2027, representing 10%-20% annual growth.
This would lift the yield from 2.6% to around 3.8% over the period.
However, rising mortgage rates and high construction costs aren’t helping the story. If things don’t settle, tightening margins could threaten the dividend trajectory.
Earnings are expected to grow 15% in 2026 and 21% in 2027, keeping payout coverage comfortable at around 2.5 times. With earnings forecast to grow 20% per year, return on equity (ROE) could reach 8.2% in three years.
Plus, the Bellway board has shown a willingness to increase payouts as the housing market recovers — just the kind of shareholder commitment that deserves a closer look.
Lloyds
Lloyds Banking Group (LSE: LLOY) is another high-yield bank with a progressive dividend policy and double-digit growth forecasts. Analyst projections show dividends rising from 3.59p in 2025 to 4.29p in 2026 and 4.84p in 2027, representing 13%-20% annual growth.
This trajectory would lift the dividend yield from 4.3% to 5.7% over the period, well above the FTSE 100 average of 3%-4%. EPIS is expected to nearly double from around 6p today to 11p by 2027, providing ample coverage for rising payouts.
But that dividend sustainability hinges on maintaining its CET1 capital ratio above 13% — a severe downturn in the UK market could force a dividend cut to conserve capital.
Still, with the bank’s cost-cutting programme and digital transformation gaining traction, it looks like a top option to consider for patient investors.
The bottom line
All three stocks combine above-average yields with 10%-20% dividend growth forecasts, making them attractive for income-focused investors seeking growth over the next three years.
NatWest offers the highest potential total return with buybacks, Bellway provides pure dividend growth in a recovering sector, and Lloyds promises steady, progressive income with strong coverage.
But never just focus on a few stocks. Broad sector diversification helps spread risk while keeping yields elevated. And there’s one more income stock I think could help do just that.
What income stock do we like better than NatWest Group Plc right now?
One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.
And the best bit is that you can see if for yourself, right now, absolutely free of charge!
No jargon. No hard sell. Just a clear look at an income share we think is worth your time.
Mark Hartley owns shares in Lloyds Banking Group.
