Income investors searching for reliable dividend growth may want to pay close attention to three UK-listed stocks flagged by analysts.
NatWest Group (LSE: NWG), Bellway (LSE: BWY), and Lloyds Banking Group (LSE: LLOY) all carry forecasts pointing to double-digit dividend increases through 2027.
NatWest raised its total dividends by 51% in 2025 to 32.5p per share, supported by profits that climbed 24% over the same period.
The bank has guided for a return on tangible equity above 17% in 2026 and over 18% by 2028, providing a strong earnings base for continued payout growth.
Analysts forecast NatWest dividends of 29p in 2025, rising to 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, which could deliver an 8% cash yield and roughly 11% total yield, supported by a £750m buyback programme.
FTSE 250 housebuilder Bellway is another standout, with forecasts showing dividends rising from 70p in 2025 to 78p in 2026 and 93.9p in 2027, representing annual growth of between 10% and 20%.
That growth trajectory would lift Bellway’s yield from around 2.6% today to approximately 3.8% over the same period, with earnings coverage sitting at a comfortable 2.5 times.
Bellway’s earnings are expected to grow 15% in 2026 and 21% in 2027, with return on equity potentially reaching 8.2% within three years if those projections hold.
Rising mortgage rates and elevated construction costs remain risks to watch, as tightening margins could put pressure on Bellway’s dividend trajectory if conditions do not stabilise.
Lloyds Banking Group rounds out the trio with analyst projections showing dividends climbing from 3.59p in 2025 to 4.29p in 2026 and 4.84p in 2027, representing annual growth of 13% to 20%.
That progression would push Lloyds’ dividend yield from 4.3% to 5.7% over the period, comfortably above the FTSE 100 average of 3% to 4%.
Earnings per share at Lloyds are expected to nearly double from around 6p today to 11p by 2027, providing ample coverage for the bank’s rising payouts.
Dividend sustainability at Lloyds hinges on maintaining its CET1 capital ratio above 13%, as any severe downturn in the UK economy could force a cut to conserve capital reserves.
Lloyds’ ongoing cost-cutting programme and digital transformation initiatives are seen as key factors underpinning its long-term income credentials for patient investors.
Across all three companies, analysts see a combination of above-average yields and strong dividend growth forecasts making them compelling options for income-focused portfolios over the next three years.
NatWest offers the highest potential total return through buybacks, Bellway provides pure dividend growth in a recovering housing sector, and Lloyds promises steady progressive income with strong earnings coverage.
Broad sector diversification remains important for income investors, as concentrating too heavily in any single area can amplify risk even when individual yields appear attractive.
