However, I don’t own any ETFs related to the Footsie. In fact, I only own one share in the entire index.

That doesn’t mean I’m not a fan of its various constituents, because I very much think there are great opportunities available in it to investors.

So why is Rio Tinto (LSE:RIO) the only FTSE 100 share I own right now?

My strategy

In my stock portfolio, I have a policy of only actively buying eight shares at any one time.

Right now, Rio Tinto is one of my eight favourite stocks, with no other Footsie stock making the cut.

But there are more than eight great stocks in the world. So just because no other shares in the index are on my list doesn’t mean there aren’t any great choices in it. Some of them include:

• Rolls-Royce
• Lloyds
• Rightmove

I think all of these are great companies with bright futures ahead. Particularly Rolls-Royce, which I think has one of the best growth prospects out of all UK companies.

All of its divisions have strong catalysts that could propel its shares further. For example, I particularly like the aircraft engine manufacturer’s investments in small modular reactors.

It’s actually one of my favourite companies. It’s just not in my top eight at the moment. However, I still believe investors should consider looking into the company further for their own stock portfolio.

But what makes Rio Tinto so special?

Ultimately, my favouritism for Rio Tinto shares boils down to artificial intelligence (AI).

I think AI is going to have a transformational effect on people’s lives and how they work, similar to the Industrial Revolution.

While the mining giant itself isn’t directly an AI company, its operations serve as the starting point for the AI revolution to occur.

In order for AI systems and software to work, AI data centres and chips need to be in place. And for AI data centres and chips to be built, crucial metals such as copper and aluminium need to be mined and supplied.

Rio Tinto has a strategic advantage in this area. Its Oyu Tolgoi mine in Mongolia has one of the world’s largest copper deposits.

Furthermore, last Friday (29 May), the company announced it started the commissioning of its $1.5bn low-carbon aluminium smelter in Quebec, Canada. This should increase the plant’s capacity by 160,000 metric tonnes to 220,000 metric tonnes.

In time, this should result in future earnings growth.

Strong results

Commodity prices can be quite volatile. As the current geopolitical environment itself is volatile, this could hurt the firm’s earnings in the short term.

However, I believe the growth in AI is already having a positive effect on the company’s earnings. In its 2025 results, underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) from copper rose by 114% to $7.4bn, and for aluminium and lithium, it went up by 29% to $4.6bn.

Moreover, in its first-quarter production update for 2026, the miner’s copper production rose by 9%.

These are good signs for the company’s long-term prospects, especially as AI growth ramps up. Overall, that’s why I think investors should consider buying Rio Tinto shares.

Should you invest £5,000 in Rio Tinto Group right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rio Tinto Group made the list?

Muhammad owns shares in Rio Tinto.

The post The only FTSE 100 stock I own right now appeared first on The Twelfth Magpie.

Today, I’m picking out three favourites to consider buying in June and holding for as long as possible.

Top performer

Shares in mining giant Rio Tinto (LSE: RIO) have been on fire in 2026, partly thanks to soaring metal prices. Anyone snapping up the stock in January will have seen their stake grow by around 30%. This is before we’ve even factored in a 192p dividend paid in April.

At the time of writing, the main index has delivered a little less than 5%.

But it’s the long-term potential I like here. The shift to cleaner energy sources means that metals such as copper, lithium, and aluminium should be in huge demand going forward. Rio is a major player in all three.

Sure, this company has no control over the price of what it digs up, and, yes, commodity markets are highly dependent on the state of the global economy (and China in particular). If history is any guide, the average investor should expect at least a few challenging periods ahead.

Even so, I think there’s an argument for saying that today’s price may look like a bargain in a few years.

Can this FTSE 100 winner keep soaring?

Another FTSE 100 stock that I think could do very well is BAE Systems (LSE: BA.). That might seem like an odd pick. After all, isn’t investing all about ‘buying low and selling high’? Ideally, yes. However, just because a company’s share price has shot up in recent times — and BAE’s most definitely has — doesn’t mean this won’t continue.

Existing investors have clearly ‘benefited’ from the Ukraine-Russia and US-Iran conflicts. A merciful end to these wars could see some sell up. The shares already trade at a frothy price-to-earnings (P/E) ratio of 24.

But this might be a mistake. Governments around Europe are increasing their defence spending on things like submarines and protection against cyber attacks. Contracts for this kind of work last for years, giving great earnings visibility for BAE.

The fact that some/a lot of this is already baked into the price means that gains could be more muted going forward. But the current backdrop suggests returns might still outpace the index.

Monster dividends

Since spreading money around different sorts of businesses is a way of mitigating (but not eliminating) risk, I’m also flagging financial services specialist Legal & General (LSE: LGEN).

Now, in sharp contrast to the other stocks mentioned here, L&G has been something of a disappointment. The share price is actually lower now than five years ago!

Still, those already invested have received a lovely dividend stream. Today, the forecast yield stands at a monster 8.2% for 2026. That’s easily the highest among the biggest companies in the UK stock market.

There’s no guarantee those cash distributions will remain at this level. However, I reckon this company’s exposure to major demographic trends, such as an ageing population needing to secure their financial futures, should allow it to begin moving up the gears in the years ahead.

Should you invest £5,000 in BAE Systems right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BAE Systems made the list?

Paul Summers has no position in any of the shares mentioned.

The post 3 FTSE 100 shares to consider buying in June and holding for a decade appeared first on The Twelfth Magpie.

What happened next? London’s premier index went on an absolute tear. Three years of impressive growth came along, all the while big dividends were rolling in (though the conflict in Iran has curtailed things a touch). And what’s really intriguing? The index still looks like good value.

FTSE 100 vs S&P 500

Perhaps the best way to demonstrate is through a comparison with the S&P 500. The American index with its tech heavy-hitters is often seen as the top dog. That’s why the following table is revealing indeed.

The long and short of it is that British companies are making more money (relative to the share price) and paying out more in dividends. This was similar to how the numbers looked a few years ago too (although slightly less pronounced).

While it’s true that American companies have better growth prospects, that could be a double-edged sword too. The talk of a bubble in artificial intelligence is one consideration. If a crash does come our way, then the ‘boring’ sectors like banks, commodities and defence that fill up the FTSE 100 could be safe havens for investors.

Worth considering?

And those same ‘dinosaur stocks’ on the FTSE 100 might have a very bright future too. Take £100bn miner Rio Tinto (LSE: RIO) for example. The commodities giant might not be the first name on our lips when it comes to brilliant forward-thinking companies. But I think it could be worth considering.

The green energy revolution is increasing demand for metals like copper, lithium, and aluminium. The new infrastructure for wind and solar power requires tons of these metals and Rio Tinto could take full advantage. The company is one of the world’s leading producers of each of these commodities.

There are risks too, of course. The company’s fortunes are quite entwined with the health of the Chinese economy. That’s because iron ore (its largest metal by sales) has been in huge demand by the country. A downturn could spell trouble.

On the whole? The stock market is too unpredictable to ever be sure of things ahead of time. But on the current numbers, I wouldn’t be surprised to be looking back in a few years’ time and thinking the FTSE 100 was looking undervalued.

Should you invest £5,000 in Rio Tinto Group right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rio Tinto Group made the list?

John Fieldsend owns shares in Rio Tinto.

The post Are FTSE 100 shares still overlooked and undervalued? appeared first on The Twelfth Magpie.

As someone who is 27 years old, I understand the feelings of others in their twenties thinking about what to do with their money.

With interest rates relatively high in recent years, a Cash ISA may seem appealing right now. Let’s see if it’s actually a good option to consider, or if investors are actually better off turning to a Stocks and Shares ISA.

Cash versus stocks

Currently, with a top-tier Cash ISA, you can earn about 4.5% annually. I understand the appeal to this, especially as the interest is guaranteed.

However, investors must consider that we’re in a relatively high interest rate environment. And even if we were to assume that the interest rate remains the same over the next five years, the total return a Cash ISA will make is 24.6%.

Meanwhile, many UK stocks have trumped this over the last five years:

• Rolls-Royce: +972.5%
• AstraZeneca: +79.7%
• BAE Systems: +305.1%
• Barclays: +135.9%
• BP: +89.1%

This is even before considering dividends.

If we compare it to the FTSE 100, we can see that the index could significantly outperform a Cash ISA over time.

Crunching the numbers

Let’s consider a period of 40 years, as it’s around the time an investor in their twenties today will retire.

We’ll also assume the average return of a Cash ISA remains at 4.5% annually over that period, and that the Footsie grows by a compounded annual growth rate of 6.4% with dividends reinvested (as it has over the last 20 years).

If an investor therefore put £1,000 in each today, this is what their returns could look like:

Initially, the difference isn’t so great, at just a measly £19.

However, over the course of the 40 years, a significant difference emerges. In fact, an investor may earn 105.6% more by investing in the FTSE 100 over that time.

There’s no guarantee stocks will continue outperforming, and they are riskier. But the potential returns are much higher. With this in mind, I’ll look at one share I think investors should consider buying to add to their portfolio.

My top UK stock

Shares of mining giant Rio Tinto (LSE:RIO) have enjoyed a very impressive 2026, rising by 16.5% so far.

What’s driven this is a rise in copper prices, which is one of its core products. Looking at its results in 2025, the underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) the company generated from copper increased by 114% to $7.4bn.

This is of no surprise to me. Copper is one of the key metals needed for the massive investment in AI infrastructure over the next few years.

The company is in a strong competitive position for this metal, with its Oyu Tolgoi mine in Mongolia hosting one of the world’s largest known copper deposits.

There are risks for Rio Tinto. Notably, commodity prices can be volatile and hurt the company’s earnings. But in the long term, it could be an under-the-radar beneficiary in the AI revolution.

Because of this, I believe it could outperform the market in the next few years, and investors should consider buying its shares.

The post At 27 years old, will a cash ISA or Stocks and Shares ISA help build wealth faster? appeared first on The Twelfth Magpie.

The question is, could a stock market crash be around the corner? One top economist believes so.

What’s happened?

It’s not often that a central bank official talks about the outlook for financial markets. When they do, it’s worth sitting up and taking notice.

So I’ve been poring over comments made by Bank of England’s deputy governor Sarah Breeden. Her verdict? She told the BBC that “there’s a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point“.

She warned of the danger of “a number of risks crystallising at the same time — a major macroeconomic shock, confidence in private credit goes, AI and other risky valuations readjust. What happens in that environment and are we prepared for it”?

Here’s what I’m doing

The Iran War has significantly heightened the risk of a market crash, raising inflation and hitting economic growth. Could we see a correction as soon as next month?

Accurately predicting short term price movements is notoriously difficult. However, it pays to be prepared. I’ve increased my holdings in defensive shares such as Primary Health Properties to give my portfolio extra steel. I’ve also built a cash chest to buy quality shares if they slump in value.

Past form isn’t always a reliable guide to the future. But stock markets have always risen over the long term, delivering healthy capital gains and dividends in the process. What’s more, those who buy on the dip tend to be especially well rewarded, as share prices recover from their low base.

A top dip buy to consider?

My own shopping list includes FTSE 100 mining giant Rio Tinto (LSE:RIO). It’s a little too expensive today, with a price-to-earnings (P/E) ratio of 12.2 times. That’s above the 10-year average of 7-8. I’ll seek to buy it more cheaply if markets drop.

So why am I optimistic about Rio’s long-term credentials? Demand in key markets like copper and lithium are tipped to take off, driven by themes like renewable energy, rapid urbanisation and global digitalisation. At the same time, major supply crunches are emerging. It’s a combination I think could supercharge commodity prices.

On the downside, mining stocks do come with some risk. Production trouble can decimate earnings projects and send share prices tumbling. Happily, Rio Tinto’s enormous global portfolio of 100-plus projects helps spread this risk.

Over 10 years, Rio Tinto shares have delivered an average annual return of 17.5%. If this continues, a £10,000 investment today will turn into £56,823 a decade from now. I expect the stock could be in high demand if the market crashes.

The post Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling appeared first on The Twelfth Magpie.

But what’s behind this popularity? And will it continue?

Outperformer

To be clear, the mining colossus has been in favour for some time. Anyone buying at the 52-week low set back in late June 2025 will now be looking at a gain of about 80%!

Even those who only bought at the beginning of the year will probably be popping a few champagne corks.

As things stand, the £120bn-cap is walloping the index return. We’re talking about a gain of almost 24% compared to the top tier’s rise of 5%. This is before we’ve even taken into account the near-192p per share dividend received by holders exactly one week ago (16 April).

Although there’s no guarantee this will carry on, it clearly shows that Foolish investors have the ability to 1) beat the market and 2) don’t need to go fishing among highly-volatile penny stocks to do so.

What’s going on with Rio Tinto shares?

This wonderful momentum can partly be attributed to a lovely rise in the copper price. The red metal is a key part of the company’s portfolio and the recent growth in production has reduced Rio’s reliance on iron ore somewhat.

The numbers have also been encouraging. Back in February, the Anglo-Australian firm reported a 7% rise in revenue to $57.6bn. Underlying profit rose 9% to $25.4bn.

It’s not all been plain-sailing though. The outbreak of war between Iran and US back in March hit share prices across the board, including that of Rio Tinto. While we’ve seen a solid rebound in April, this does show how exposed the company is to geopolitical tensions and subsequent economic concerns.

The miner’s income credentials can also be questioned. The total dividend has been up and down over the years. Still, it could be argued that this is to be expected when investing in a company that has absolutely no say over the price of what it digs up. Moreover, the current forecast yield of 4.8% is more than would be received from a FTSE 100 tracker fund (roughly 3%).

At the time of writing, this year’s dividend also looks like it will be covered by expected profit. So there should be no need for managment to dip into cash reserves to fund it.

Still time to buy?

I’ve been bullish on Rio Tinto shares for some time now. Yes, the time to really load up was last year. But I still think they’re worth considering today, albeit within a diversified portfolio. A forecast price-to-earnings (P/E) ratio of 12 doesn’t feel excessive relative to the rest of the UK market. It’s also pretty reasonable (athough not cheap) among companies in the basic materials space.

But the biggest argument in favour of holding a slice of Rio surely has to be the long-term outlook. While share price movement in the near-term is hard to call, the company’s clearly looking towards the future and planning for the huge demand in metals to support the green energy revolution and ongoing rise of AI. This will include building one of the world’s largest copper mines in Arizona.

Bar any unforeseen disasters, recent gains might be just the start.

The post Why is everyone buying Rio Tinto shares? appeared first on The Twelfth Magpie.

But how much would someone need to accumulate to aim for £1,500 every month (£18,000 a year) using the 4% ‘safe withdrawal’ rule?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Realistic goal

The answer to that question is £450,000. I know, that’s a huge number. But I reckon it’s achievable for someone willing to put their money to work in the stock market as early as possible and compound the value of what they own over time. Put £400 aside every month and — assuming an average annual return of 7% — our investor will have that massive pension pot in 30 years.

Now, I won’t shy away from the fact that this will all require a healthy dollop of discipline. But that’s always been the Foolish way. We invest for the long term. Think decades, not weeks, months or a year.

Then again, there’s no rule to say that an investor can’t target a higher average return and attempt to speed things up. To do this, they’ll need to take on more risk by owning a portfolio of individual company stocks. There’s no magic number but between 10 and 20 should give a good amount of diversification. This is important because there’s always a chance that a few in that group might seriously underperform.

Strong candidate

A company like Rio Tinto (LSE: RIO) could arguably make the cut. It’s one of the biggest miners around, digging up metals such as aluminium, lithium and copper from around the world. It’s also been pretty great source of dividends over time. Right now, the yield stands at 4.7% for the current financial year. That’s more than an investor would get from holding a FTSE 100 tracker fund (3%).

This is not to say that Rio is all about income. Far from it. The stock’s up almost 70% in the last 12 months off the back of strong earnings reports and rising commodity prices.

No sure thing

I rate Rio highly as a ‘buy and hold’ contender. But it’s far from a safe bet. Of course, no stock truly is. But the £120bn-cap makes its money from markets that are notoriously volatile. It has absolutely no say on the value of what it digs up. On top of this, mining is dangerous and unpredictable work.

For proof of just how tricky things can get, take a look at the behaviour of the share price in 2026 alone. At the beginning of the year, this stood at 6,000p, rising to almost 7,500p by the end of February. By mid-March, that gain was almost entirely wiped out as the USA-Iran war kicked off. It’s since recovered strongly.

Even so, the likely surge in demand for metals like copper over the next few decades as the world increasingly adopts clean energy, electric cars and other technologies suggests investors should at least consider having some exposure to companies like this.

Seen through this lens, any temporary drop might regarded as an opportunity to think about buying at a more attractive price.

The post How much does an investor need in an ISA to target £1,500 in monthly passive income? appeared first on The Twelfth Magpie.

The surge was driven by a powerful rebound in iron ore prices and Rio’s ability to convert that into hefty cash flows for shareholders.

But despite this momentum, the shares still trade on modest earnings multiples. So, how much further has the rally left to run?

Key earnings drivers ahead

A risk for Rio going forward is its heavy capital investment programme. It means periods of lower free cash flow are possible as major projects move through construction and ramp‑up phases. Another is shifting demand through the commodities pricing cycle that may squeeze margins during bearish periods.

Nonetheless, analysts forecast medium-term growth of 8% a year, on average, which looks well supported by 2025 annual results.

Underlying EBITDA rose 9% year on year to $25.4bn (£19.2bn), underpinned by an 8% uplift in copper‑equivalent production and firmer cost discipline. Consolidated sales revenue increased 7% to $57.6bn, illustrating the contribution of higher copper and aluminium volumes alongside improving market premiums.

Net cash generated from operating activities rose 8% to $16.8bn, underlining its diversified portfolio and the early returns from major growth projects such as Oyu Tolgoi and Simandou.

Together, these drivers reinforce a clear route for sustained earnings growth ahead, in my view.

Share price gains in sight?

Comparisons of Rio’s key stock measures against its competitors suggest it remains undervalued.

For instance, its 15.4 price-to-earnings ratio is bottom of its peer group, which averages 36.5. These firms are BHP at 18.1, Vedanta at 19.5, Antofagasta at 34.4, and Griffin Mining at 74.1.

It also looks a bargain on its price-to-sales ratio of 2.7 compared to its competitors’ average of 4. And its price-to-book ratio of 2.5 against its peers’ average of 4.5 also looks cheap. 

On these metrics, Rio continues to trade at a clear discount to its peer group — a gap that looks increasingly hard to justify, in my view.

Rising dividend income?

Rio’s 402 US cents (304p) 2025 dividend gives a current yield of 4.1% — well above the present 3.1% FTSE 100 average. These returns can go up or down, depending on share price moves and changes in annual dividends, of course.

However, analysts forecast Rio’s dividend will rise to 355p this year, 356.5p next year, and 365.1p in 2028. These would generate respective yields of 4.8%, 4.9%, and 5%.

So, my £20,000 holding in the firm would make me £12,940 after 10 years and £69,355 after 30 years. This assumes the 5% forecast yield and the dividends being reinvested back into the stock to harness the power of dividend compounding. 

By the end of the 30 years, the total value of the holding would be £89,355 (including the original £20,000 investment). And this would make me an annual dividend income of £4,468.

My investment view

Given Rio’s strong fundamentals, huge cash generation, and valuations below its peers, I will buy more of the shares soon.

And I also have my eye on other undervalued stocks that pay even higher dividend yields.

For investors seeking dependable exposure to global commodities without paying premium multiples, I think Rio is well worth considering.

The post £20,000 invested in the FTSE’s Rio Tinto a year ago is now worth… appeared first on The Twelfth Magpie.

With the financial year taking us through to 2027, let’s take a look at a thematic £2,027 monthly passive income goal. How much do we need in an ISA to reach that kind of income? And what stocks might be well-placed to take us there?

Drip-feeding

Let’s start by saying that £2,027 every month is nothing to sniff at. It’s a tax-free income higher than the pension and the minimum wage. And the amount required in a Stocks and Shares ISA (assuming we withdraw at 4% a year) is £608,100.

That’s crazy money, really. But here’s the thing. Generally folks don’t chuck in over half a million all at once. The money is drip-fed slowly over the years from a day job. This is actually better too because it allows investments to grow and the amount of cash to be stumped up far less. Most investors who end up with £600k in an ISA won’t have put in anywhere near that much.

How much? Well, over an investing timeline of 30 years and assuming 10% returns then that’s £294 a month. Assuming 8%? That’s £432 a month, and the lower the return rate, the more needs to be invested. There are no guarantees, of course. But the figures sounds a lot more reasonable, and could even be less with good investments.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

One to consider?

One area I’ve been keeping a close eye on lately is mining. The sector hasn’t performed too well of late, but I think there is a fair chance for a company like Rio Tinto (LSE: RIO) to outperform in the years ahead. That could make it a good stock for a Stocks and Shares ISA.

Why? Well, mining is a notoriously cyclical sector, which means booms and busts are par for the course. After a few fallow years, the Rio Tinto share price rising 30% in the last six months could be the start of a surge.

The company is pivoting towards green energy commodities like copper and lithium. As the world embraces cleaner energy sources like solar panels or wind turbines, these have a chance of being the metals of the future.

There are risks here too. The firm’s cash cow is iron ore, which brings in large sales from China and especially its construction sector. A slowdown in the Asian giant’s economy could make this a poor investment whatever the company itself is up to.

No one can ever predict ahead of time what a new financial year will bring. But if history is anything to go by, then there will be more than a few stocks that rip higher over the period. Perhaps Rio Tinto will be counted in their number.

The post How much do I need in a Stocks and Shares ISA to reach a £2,027 monthly passive income? appeared first on The Twelfth Magpie.

Let’s look at three examples that are outpacing the FTSE 100 and might just continue doing so for the remainder of 2026.

Turnaround dividend stock

Despite Vodafone‘s (LSE: VOD) chequered history when it comes to distributing cash to its owners, investors have long gravitated towards the telecommunications behemoth for their dividend fix. But lately, this market juggernaut has been behaving almost like a growth stock! A 15% gain in 2026 compares favourably to the index’s 9% and adds to the super momentum seen in 2025.

Of course, the rise in its share price has reduced the dividend yield. Right now, this stands at 3.6% — fairly modest when other stocks in the FTSE 100 are yielding up to 8%. But it’s more than a bog standard index tracker would currently earn (2.9%).

After a tough few years, it looks like investors are warming to this company’s strategy of selling its non-core businesses and focusing more on growth markets. Indeed, the completion of its merger with Three UK last year seemed to mark an inflection point in sentiment.

My chief concern remains the massive debt load. Yes, it’s lower than a few years ago. But ongoing and fierce competition could make a substantial reduction unlikely for now.

Future proof

Also on a charge is mining giant Rio Tinto (LSE: RIO). Its shares have performed even better — rising over 20% since the start of January — helped by a surging copper price.

Despite this great performance, there have been a few volatile days in the mix. A couple of weeks ago, Rio’s price dropped as it posted flat annual earnings and missed analyst expectations due to weaker iron ore prices. This highlights the bumpy ride that all investors in commodities can expect.

Still, the likely huge demand for the red metal in the years ahead as the world migrates towards to cleaner energy sources surely bodes well for Rio as both a long-term income and growth play.

Again, the dividend yield isn’t quite what it was. But 4.6% is hardly bad. And although those cash distributions can never be guaranteed, they look set to be covered by expected profit.

Reliable income

Yielding 3.5%, power provider National Grid (LSE: NG.) completes our trio of income stocks doing well. Up 20% so far, this traditionally ‘boring business’ has now hit a record high.

Now, I’ve always regarded this as a potential cornerstone of any dividend-focused portfolio. In addition to regular-if-modest hikes to the total amount of cash returned, our constant need for gas and electricity makes this one of the most defensive businesses around.

It’s not a slam-dunk investment, though. Like Vodafone, the Grid has a huge debt pile, primarily due to the cost of maintaining its infrastructure. A price-to-earnings (P/E) ratio of 18 also makes National Grid shares the most expensive of the three.

As more money seems to be flooding into UK and European stocks from across the pond, however, I think the price might just continue going up.

The post These British dividend stocks have been flying in 2026. I think there could be more to come! appeared first on The Twelfth Magpie.