I’m looking for the best dividend stocks to buy in the New Year. And I believe my research has uncovered some absolute beauties.
Central Asia Metals, Target Healthcare REIT, TBC Bank, and M&G (LSE:MNG) are four passive income shares I think demand serious consideration. With each of them also trading on ultra-low price-to-earnings (P/E) ratios, there’s room for significant share price gains in 2026 too.
Want to know why?
Copper giant
A strong copper price is helping Central Asia Metals to return plenty of cash to investors. The business — which mines for base metals in Kazakhstan and North Macedonia — is doing this through a blend of dividends and share buybacks.
City analysts are confident the red metal will keep appreciating in 2026, leading to sustained earnings and dividend growth at the miner. This leaves it with an enormous 7.3% dividend yield for next year and a rock-bottom P/E of 7 times.
Be mindful, however, that mine production issues are a constant threat that could scupper these forecasts.
Top trust
Real estate investment trusts (REITs) like Target Healthcare have to pay at least 90% of rental profits out in dividends.
This alone doesn’t make the care home operator a reliable dividend share. Rising staffing costs represent just one threat to businesses like this. But largely speaking, the company’s defensive operations allow it to deliver healthy payouts year after year.
Over time, I expect Target’s dividends to rise over time as the UK’s ageing population supercharges market growth. The REIT’s dividend yield for 2026 is 6.2%. Its P/E ratio meanwhile is a modest 8.4 times.
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Bargain bank
Right now, I’m not interested in Lloyds, HSBC, and the FTSE 100‘s other big banking shares.
To my mind, TBC Bank offers by far the best all-round value across the sector. At 6.6% for next year, its yield is double the broader FTSE 250 average as well. Its P/E for 2026 is just 5.3 times.
Despite the threat posed by Georgia’s political landscape, the bank’s profits continue to soar. These hit a new quarterly record in Q3, driven by loan and deposit growth of 9% and 11% respectively.
With strong GDP growth on its side, TBC looks set to deliver large and growing dividends in the years ahead.
10% dividend yield
M&G has raised annual dividends every year since it listed on the FTSE 100 six years ago. It’s a record City analysts expect to continue to 2027 at least.
This results in an enormous 10% dividend yield for 2026, making it (potentially) one of the best-paying UK stocks.
I’m not surprised by the City’s bubbly forecasts. As a financial services provider, M&G’s profits are vulnerable to economic setbacks. Yet a robust Solvency II capital ratio of 230% should still give it scope to pay more market-leading dividends.
I’m confident M&G will remain a top dividend stock over the long term, as demographic changes drive demand for pensions, wealth, and savings products.
For 2026, it trades on a low P/E ratio of 9.9 times.
