After last April’s sweeping trade tariffs, both US and UK shares took a hit — but the impact didn’t last long. The Dow Jones has since made a spectacular recovery, recovering 30% to hit 50,000 points for the first time.
But with valuations stretched and US GDP growth forecast at only 2%-2.5%, analysts don’t expect the same in 2026. Overall, the Dow isn’t expected to grow more than 10% in a best case scenario, with lower forecasts predicting only 3% growth.
These three high-yielding UK shares are forecast to grow far more.
Kainos
Kainos (LSE: KNOS) helps big firms like the NHS or banks to upgrade their digital systems, especially with Workday software for payroll and HR. It’s been growing revenue steadily the past few years, with increasing public sector deals and cloud demand as UK government tech expenditure grows.
Analysts forecast average price growth of around 67% in the coming 12 months. The 4% yield’s reliable too, covered by cash flow even after five years of increases, and shares trade on a fair-ish multiple around 29 times earnings.
Still, it faces stiff competition from lower-cost alternatives in regions like India. If the economy dips, tightening budgets could send clients looking elsewhere. Still, the combination of growth and income makes it worth considering in my book — even with the tech-cycle wobbles.
Telecom Plus
Think of Telecom Plus (LSE: TEP) as a one-stop shop for broadband, mobile, gas, and electric. By bundling bills together, it saves customers cash and builds loyalty. The latest half-year results showed steady profits despite energy price swings, with dividends up 13% last year to a near-7% yield. Cash coverage is a bit thin at only 1.2 times but is backed by 25 years of payments.
Plus, the average 12-month analyst forecast is 68% higher than today’s price. That’s a chunky combo of income and growth!
But it’s a competitve sector, with rivals Octopus and Bulb muscling in on its market share. On the plus side, falling wholesale energy costs should boost profits as UK households switch. But any change in regulations could further pressure margins.
For now, the balance sheet looks solid and cash generation is promising. For investors seeking dependable income with growth potential, it’s a strong contender to consider.
MONY Group
MONY Group (LSE: MONY) operates price comparison sites like MoneySuperMarket, helping customers find the best deals on loans, insurance, and broadband. Revenue recently ticked up 1% to £225m amid car insurance woes while EBITDA rose 2% and SuperSaveClub membership hit 1.5m, now 14% of sales.
The core attraction here is the stock’s 8.2% yield, but the average 57.5% growth forecast is a big bonus. Analysts have cited potential UK rate cuts as driving interest in switching providers.
But lately, AI-driven comparisons and fierce Google ad competition threaten its business model. If consumer spending softens, it could stall traffic and impact profits.
While the growth narrative is lower here, the yield is undeniably attractive for UK income hunters. It’s long been a favourite of mine and the current low price also makes it worth considering.
