With this in mind, I’ve dug out three of the hottest global dividend stocks to consider today. These are The Renewables Infrastructure Group (LSE:TRIG), Western Union (NYSE:WU), and Henderson Far East Income (LSE:HFEL).

Not only do these income shares carry double-digit dividend years. They also have strong records of dividend distribution behind them, which should allay any fears of them being classic dividend traps. Want to know what makes them in my view so great? Read on…

Green giant

The Renewables Infrastructure Group offers an 11.4% dividend yield for 2026. For next year the reading moves to 11.5%. These are no pie-in-the-sky forecasts — excluding 2021, annual payouts here have risen every year since the stock listed in London in 2013.

But what makes it such a reliable (and big-paying) dividend share? It owns a highly diversified portfolio of renewable energy assets, delivering a predictable cash flow across the economic cycle. Earnings and dividends are also boosted by long-term, inflation-linked contracts with energy suppliers.

Like any renewable energy share, power generation (and by extension) shareholder returns are at the mercy of weather conditions. However, Renewables Infrastructure smoothes out this risk by building wind and solar assets across Europe, which maintains strength at group level.

A top US stock

Western Union’s dividend yields sit at 10% for 2026 and 10.1% for 2027 respectively. Yields have leapt as the share price has declined, reflecting the impact of new fintech companies on its operations.

Put simply, people have a wide choice of options when it comes to sending payments. But in its 125-year history, Western Union has adapted to technological changes and evolving consumer habits. And it has a few tricks up its sleeve to remain profitable, from shifting further into digital payments and away from cash-based agents, to expanding into fast-growth regions.

Last year, for instance, saw Western Union link up with regional operators in Latin America and Saudi Arabia to win new customers. I think it could be a great dip buy to consider — as well as having those double-digit yields, it trades on a forward price-to-earning (P/E) ratio of just six times.

Look east

Henderson Far East Income is listed on the London Stock Exchange. But it’s a great investment vehicle to consider for those hunting international dividend shares.

The trust holds a total of 74 companies spread across Asia including China, South Korea, Hong Kong, and Singapore. This leaves it more vulnerable to regional stress than one with a wider wingspan. But it also means robust returns, reflecting the stunning economic growth of these countries.

Dividends have risen at a steady (if unspectacular) 1.6% each year over the last five years. City analysts expect further growth in 2026, meaning a gigantic 10.8% dividend yield.

Henderson Far East’s annual dividends have risen for 18 straight years, better than most other UK income-paying stocks. I think it’s a brilliant stock to consider for long-term passive income.

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Gone with the wind

The first is the Renewable Infrastructure Group (LSE:TRIG). The stock is down 12% over the past year, and is close to 52-week lows. A key driver in this move has been lower expected electricity prices. This directly hit future revenues from wind and solar assets.

This matters because the company’s valuation depends heavily on projected long-term cash flows from power generation. So if the current assumption is lower prices, it could result in lower profits, which investors need to readjust for.

Despite this, I think the reaction has been too much. The share price should closely mirror the net asset value (NAV) of all the infrastructure assets it owns. However, the stock is currently at a 31% discount to the latest reported NAV. This could indicate it’s undervalued.

Further, it looks like a bargain from a dividend perspective. The current dividend yield is 11.67%, making it one of the highest in the FTSE 250. The dividend per share has been increasing for several years, and I don’t see it as being under any immediate threat of being cut.

Of course, the risk of lower electricity prices is an ongoing concern. However, I struggle to see it remaining like this for a long time, given the increasing demand from EVs and AI data centres.

Further room to run

A second option is Hiscox (LSE:HSX). The share price has rallied almost 40% in the past year, but I still think it looks good value! For a start, the price-to-earnings ratio is 10.6. This is below the FTSE 100 average ratio of 18, meaning the share price could still have a way to go before it looks fairly valued using this metric.

The company has good momentum with it. A core driver has been consistent underwriting profits, shown by combined ratios comfortably below 100% (a key insurance profitability metric). This ratio shows discipline in underwriting, which should give investors confifdence the team knows what they are doing.

It’s also benefitting from growth in most market segments. This ranges from retail right through to reinsurance. The outlook appears strong, with projected growth in premiums. As a result, I just don’t think the share price has kept pace with the business over the past year, making it undervalued.

There’s always the risk of catastrophic loss from natural disasters. This is an inherent risk with insurance companies, but it can’t be avoided when investing in the sector.

Overall, I think both shares look like bargains and should be considered by anyone looking for portfolio additions right now.

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But what about if you’re searching for double-digit dividend yields? No problem. Take the following three stocks: The Renewables Infrastructure Group (LSE:TRIG), Octopus Renewables Infrastructure Trust (LSE:ORIT), and JPMorgan Nasdaq Equity Premium Income ETF (LSE:JEPQ). Each has a forward dividend yield above 10%, and a long record of paying market-beating cash rewards.

And I’m confident they can continue delivering brilliant income streams to investors. Want to know why?

Tech titan

Exchange-traded funds (ETFs) can be a great way to source a passive income. These can hold a wide variety of assets, helping to protect shareholders from individual shocks and providing a smoother return.

The JPMorgan Nasdaq Equity Premium Income ETF — which has a 10.8% dividend yield — is one such diversified fund to consider. It holds Nasdaq 100 US tech stocks which it then sells covered calls on. When out-of-the-money call options are sold, the income is paid to investors in dividends.

It’s a more complicated way to make income from the stock market. A focus on growth shares also means the fund could drop sharply in value during economic downturns. Yet over time, the ETF has proved a great dividend generator and one I expect to keep outperforming.

Renewable energy giant

Investment trusts that focus on renewable energy are another top income source to consider. This is because interest rate pressures and worries over a slower-than-expected green transition have pushed prices lower, supercharging dividend yields.

Octopus Renewables Infrastructure Trust now carries a 10.5% forward dividend yield. Could it rebound in value soon? I think so, with further Bank of England interest rate cuts on the horizon.

There’s a lot I like about the trust from a dividend perspective. Like other electricity producers, its operations are highly defensive and provide a steady flow of cash that can be returned to shareholders. I also like its wide, Europe-wide geographic footprint — this doesn’t eliminate the threat of weather-related disruptions, but it lessens the danger as localised calm conditions have a smaller impact on total power production.

An income stock I own

The Renewables Infrastructure Group is a renewable energy stock I’ve actually bought for my portfolio. And with a 10.7% forward yield, it’s one I think investors should seriously consider.

Why did I plump for this particular operator, you ask? With more than 80 assets on its books, it has an even wider footprint to protect against isolated operational problems. These are also spread across Europe, but that’s not all — its portfolio comprises onshore and offshore wind farms, solar projects, and battery storage assets, meaning it’s also well diversified by technology.

Lower electricity prices have been a problem of late. I’m confident, though, it will remain a robust passive income generator and that it’s share price will rebound following recent weakness.

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Or is it? Sure, the index has clear benefits for income investors. But concentrating solely on blue-chip UK shares mean investors frequently miss out on top dividend opportunities elsewhere.

Take Regional REIT , AEW UK REIT and Target Healthcare REIT. Combined with a high-paying FTSE 250 energy stock — more of that one later — the average dividend yield among this grouping is 9.2%. But what makes them such exceptional income shares to consider?

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.

3 top trusts

Real estate investment trusts (REITs) can be among the most reliable dividend stocks out there. I’m not saying that they’re not immune to pressures that can impact shareholder payouts. However, sector rules mean they provide better income visibility for investors than almost any other share.

This is because REITs have to pay at least 90% of profits from their rental operations out in dividends. It’s the trade-off they make for juicy tax breaks on corporation tax.

As a result, Regional REIT (9.7%), AEW UK REIT (7.7%) and Target Healthcare REIT (7.4%) offer dividends yields that tower above the UK share average. But what gives them the earnings power to deliver these juicy rewards?

Robust models

Many of Britain’s REITs aren’t immune to broader economic conditions. When times are tough, their properties can become vacant, and they can have trouble collecting rents. Regional REIT’s focus on the highly cyclical office sector leaves it especially sensitive to downturns. AEW, meanwhile, has high exposure to industrial and retail industries.

That said, these investment trusts enjoy large property portfolios and wide client bases. This significantly lessens the risk of dividend disruption if one or two tenants experience difficulties. Take Regional REIT, which has 118 properties on its books and 690 tenants on its books, providing a steady and reliable stream of income at group level.

Target Healthcare REIT is particularly robust across the economic cycle. Its rent collection was 99% in the December quarter, reflecting the trust’s focus on the ultra-defensive care home market.

11% dividend yield!

Another top dividend stock I like at the moment is The Renewables Infrastructure Group (LSE:TRIG). This FTSE 250 income hero I teased earlier offers a staggering 12% forward dividend yield.

But why is the yield so high, I hear you ask? It’s because — like many renewable energy stocks — the trust’s share price has slumped more recently, driving dividend yields higher. Lower wind speeds have hit power generation and profits. It’s also suffered as higher interest rates have inflated borrowing costs and depressed net asset values.

These remain risks, but I’m hopeful Renewables Infrastructure Group’s share price could rebound strongly as the Bank of England slashes rates again, and demand for green energy accelerates. I certainly believe it’ll remain a top dividend-paying stock, underpinned by its defensive operations that deliver stable cash flows.

The group has raised payouts almost every year since 2013 when it listed on the stock market. I think it will remain one of the UK’s greatest dividend stocks.

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One way to build this is via buying income shares from the stock market. And here’s one to consider.

Utilities for the future

I’m talking about the Renewables Infrastructure Group (LSE:TRIG). The investment trust owns a portfolio of renewable energy infrastructure assets, as the name suggests.

The company earns cash primarily from revenue generated by its renewable assets. This means electricity sales, whether directly to the market or through fixed-price contracts with third parties. Further, there’s also the aim of long-term capital appreciation of the actual assets.

Over the past year, the share price is down 17%. Part of this is directly attributable to the portfolio’s lower net asset value (NAV). After all, the share price should closely follow the NAV. Some reasons for the fall include weaker power price forecasts, some grid outages, and interest rates staying higher for longer (making new debt more expensive than previously thought).

However, I still think the company’s long-term fundamentals are strong. Even though investor sentiment (and government policy) on renewables has been uncertain recently, I can’t see this lasting for long. Renewables are the future of energy, and to me that’s an unavoidable fact.

Strong track record

The cash flows made from the assets are then partly used to fund the dividend. At the moment, it has a juicy 10.88% dividend yield. It typically pays out income each quarter, making it more appealing than some other shares that only pay out annually.

Of course, dividends aren’t guaranteed. But the company has a solid track record not only of paying dividends but also of increasing them over the past few years. The H1 2025 interim report showed a net divdiend cover ratio of 1.0. This means the dividend’s completely covered by the latest earnings per share, meaning it doesn’t have to eat into retained earnings to pay. This is a good sign for sustainability.

Looking at the numbers, a £4k investment could yield £435.20 in annual dividends, or £108.80 a quarter. This assumes the current dividend will be paid out again. In reality, it could be higher or lower, but those are the numbers as we currently stand.

A long-term play

The main risk I see is if general sentiment towards renewable energy stays lower for longer than I anticipate. In this case, the stock could keep falling, eroding the dividend gains. Volatility from underlying commodity pricing is another potential concern.

However, using a long-term time horizon, I still think it’s a stock for investors to consider.

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To put this payout in perspective, that’s more than three times the 3.3% yield offered by the FTSE 250 overall. And if the company can maintain this double-digit yield, investors could be looking at a rare and lucrative passive income opportunity.

So is this too good to be true? Or is there hidden potential the market’s overlooked?

Inspecting the yield

Typically, double-digit yields are a result of a free-falling share price. And in the case of Renewable Infrastructure Group, that’s indeed what’s been happening. For reference, the stock’s tumbled by just over 21% in the last six months, and almost 50% in the last five years.

However, despite this share price volatility, not only have dividends continued to be paid, but they’ve actually been getting hiked to record highs. What’s going on?

As its name suggests, the company’s focused on investing in renewable energy infrastructure across the UK and Europe. This includes projects like wind farms, solar farms, and battery storage.

Due to a combination of falling power prices and rising interest rates, investors have largely soured on the renewable energy sector in recent years. And consequently, shares like this have been punished hard, despite the underlying cash flow generation remaining relatively robust.

The result? Dividends have continued to flow into loyal shareholder pockets while the share price has fallen massively below the net asset value (NAV).

Overall, this sounds like a rather promising income and value opportunity. So what’s the catch?

Enormous price uncertainty

Being a geographically diversified business provides some protection against any single country’s change in regulation. However, that hasn’t proven as effective when it comes to the weather.

Lower wind speeds have resulted in clean energy production falling fairly consistently under budget. The impact of this has only been amplified by curtailment in Sweden preventing the business from selling all the energy it did manage to produce.

Consequently, while cash flows remained robust, the level of dividend coverage has fallen to 1.0. That means all of the money generated is being given entirely to shareholders. While that may sound good for investors, it also means there’s now almost zero margin for error.

If power prices fall, dividends could get cut. If the higher debt burden becomes too challenging, dividends could be cut. If renewable subsidies come under pressure, like in the UK, dividends could get cut.

Put simply, there are multiple points of failure for shareholder payouts, with little recourse management can pursue.

The bottom line

A sudden surge in power prices or a sharp cut in interest rates could create a powerful tailwind for all renewable energy players. Debt would quickly become less problematic while stronger cash flows pave the way for further dividend expansion.

However, as things stand, that doesn’t look likely in the current market environment. And consequently, there’s substantial downside risk still attached to this enterprise, even with the shares trading at a near 40% discount to NAV. That’s why I think investors should consider looking elsewhere for passive income opportunities in 2026.

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It allows investors to harness the incredible wealth-creating power of the stock market. And with protection from income tax, every penny of income is protected from the grasp of HMRC.

But how large would your ISA need to be to generate a life-changing £3k income? It might not be as large as you think.

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.

Targeting passive income

The answer to this question is a simple one of dividend yield. A higher yield means more income for every pound invested.

The long-term average yield for the FTSE 100 index sits at between 3% and 4%. The UK stock market’s packed with top shares that sport yields well above that level than that. Many have dividend yields double those levels, at 8%, or higher.

At this yield, someone targeting a £36,000 yearly (or £3,000 monthly) passive income would need £450,000 in their ISA.

11.1% dividend yield

Investing in higher-yield stocks with an ISA like comes with risk, though. The delivery of market-beating dividends to investors can be unsustainable. Large cash distributions can also be a signal of a company in distress.

Dividend chasers can effectively manage this risk, though, with careful research and by building a diversified portfolio. An ISA of 15-20 shares or more can reduce the impact of any single company pausing or cutting dividends on overall returns.

The Renewables Infrastructure Group (LSE:TRIG) a dividend stock I really like to build passive income. In fact, it’s one I hold in my own Stocks and Shares ISA. With an 11.1% forward dividend yield, it could be one of the best dividend providers in an average 8%-yielding portfolio.

TRIG (for short) is one of the FTSE 250‘s best dividend shares to consider, in my view. Dividends have risen almost every year since it listed on the London stock market in 2013.

An oversold income star

But why is the dividend yield so high today? Investor confidence in the company is low and its share price dropped sharply in 2025. Weak wind generation, rising industry costs for new projects and higher-than-normal interest rates have dragged its share price lower.

I’m optimistic the trust will rebound sharply over time, though, even as these threats endure. The push to green energy continues at breakneck pace, and TRIG — which operates a large portfolio of wind and solar farms across Europe — is well placed to capitalise on this.

In the meantime, the steady stream of cash it enjoys should help it keep paying enormous dividends while the share price takes time to recover. Today it trades at a 37% discount to its net asset values, making it worth a close look from bargain-loving dividend investors.

Bottom line

In my view, a £450,000 ISA is a realistic target for sensible and patient investors. Based on an average annual return of 9%, someone could reach that magic number by investing £402 a month over 25 years.

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Take the following London-listed assets, for instance:

• The Renewables Infrastructure Group (LSE:TRIG), whose forward dividend yield’s 8.3%.
• iShares World Equity High Income ETF (LSE:WINC), which delivers a 9.8% corresponding yield.
• Phoenix Group (LSE:PHNX), whose forward yield’s 8.3%.

Each of these yields is more than double the FTSE 100 average of 3.4%. And if broker forecasts are accurate, a £10,000 lump sum invested equally across them will yield an £880 passive income in 2025, and probably (in my opinion) a growing one beyond this year.

Here’s why each dividend share has significant long-term income potential and maybe worth considering.

The trust

The Renewables Infrastructure Group’s stock’s plummeted in popularity in the last half decade (down 33%). The threat of enduring high interest rates and changing global green energy policy has dampened investor confidence.

This remains a risk going forward. However, the subsequent fall in sector share prices leaves attractive value, in my book. The Group boasts that enormous 8%+ dividend yield. At 88.8p, it also trades at a 20.7% discount to its net asset value (NAV) per share.

I like this particular share given its relatively low risk profile versus many sector rivals. Its assets are dotted across Europe, where policy towards renewable energy remains highly favourable. And they span multiple countries and technologies — namely wind, solar and battery storage — which reduces reliance in one area to drive profits.

I think the trust retains huge long-term investment potential as the climate emergency worsens.

The fund

The iShares World Equity High Income ETF offers a lucrative passive income and the beauty of diversification. With holdings in 313 dividend-paying shares, it can absorb individual shocks at group level and still deliver healthy returns.

The companies it holds span the whole of North America, Europe and Japan, and the portfolio includes market leaders across multiple industries — the list includes including Nvidia, Pfizer, Morgan Stanley and Pepsico. In addition, its holdings include US Treasuries and cash, giving the fund additional robustness.

Over time, I’m optimistic that the income shares it owns will deliver robust returns. But with high exposure to cyclical sectors like technology, financial services and industrials, it may also deliver disappointing capital gains during economic downturns.

The FTSE 100 share

The Footsie’s surge to record peaks means few income stocks now have yields north of 8%. Phoenix is one that’s retained this special status.

Persistent inflation and weak economic growth remain a danger to the financial services giant. While this threatens profits in the near term, City analysts don’t believe this will impact its progressive dividend policy — shareholder payouts have risen each year since 2018.

This reflects Phoenix’s excellent cash generation and balance sheet, which allowed dividends to keep growing even when the pandemic clobbered earnings. Today its Solvency II capital ratio is 172%, well above its target range of 140-180%.

I expect it to remain an impressive FTSE 100 dividend payer, as its protection and pensions markets rapidly expand and drive cash flows.

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RWS Holdings

The projected rise of artificial intelligence (AI) poses a risk to a vast range of companies. This includes RWS Holdings (LSE:RWS), which provides translation and localisation services to businesses around the globe.

Yet, while this disruptive threat demands serious attention, I think the company may not be as affected as some fear. This is because some of the sectors it covers — think legal services, life sciences, and aerospace and defence, for instance — require 100% content accuracy all of the time.

For instance, any inaccuracies in jet design documentation could compromise safety, leading to costly mistakes or even catastrophic outcomes. Is it likely that companies will want to entrust such responsibilities AI? I’m not so sure, meaning businesses that have specialist technical knowledge like RWS will remain in high demand.

At current prices, I think the company could be a brilliant bargain share to consider. At 115p, it trades on a forward price-to-earnings (P/E) ratio of 5.7 times, and its price-to-book (P/B) ratio is under 0.5.

Any P/B below one indicates that a share is cheap relative to the value of its assets.

Finally, with an 11% forward dividend yield, RWS shares have one of the highest dividend yields on the London stock market today. Cash payouts here have risen consistently since 2016.

It’s important to note that RWS’ sliding share price has pumped the yield up to current levels. I’m optimistic that they’ll rebound, but there could be more turbulence in the near term if worries over AI and the broader economy grow.

The Renewables Infrastructure Group

Utilites stocks like Renewables Infrastructure Group (LSE:TRIG) have been hit badly by higher-than-usual interest rates since late 2022. And while rates are beginning to come down, signs of returning inflation could hamper any further plans by central banks to loosen monetary policy.

Yet it’s my belief that this threat to Renewables Infrastructure is more than baked into the cheapness of its shares. Today, the company trades at 77.9p per share, which is 33.4% lower than its estimated net asset value (NAV) per share.

On top of this, its forward P/E ratio is an undemanding 9.6 times. And the firm’s corresponding dividend yield is a huge 9.7%.

I think extreme price weakness in recent years may have created an attractive buying opportunity for patient investors. While the company may endure some near-term turbulence, I think profits could soar longer term as global energy demand increases.

The International Energy Agency (IEA) forecasts that power demand from data centres alone will double between now and 2030, a sum equivalent to the entire electricity consumption of Japan today. With countries taking steps to reduce their fossil fuel uptake, renewable energy stocks have considerable earnings potential.

Renewables Infrastructure is one of my favourite plays on this theme. With solar, wind, and battery storage assets covering the breadth of Europe in its portfolio, it provides a diversified (and therefore lower risk) way for investors to gain exposure.

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As you can see, dividends for these FTSE 250 shares are tipped to keep growing, resulting in high yields that smash the 3.4% FTSE 250 forward average.

If City forecasts are correct, £10,000 invested in both of these dividend shares would create a £2,430 passive income this year alone. Here’s why I’m tipping them to deliver a large and growing dividend stream today and beyond.

SDCL Energy Efficiency Income Trust

At almost 14%, the SDCL Energy Efficiency Income Trust has the highest dividend yield on the FTSE 250 today.

But unlike many ultra-high-yielding shares, this trust is no flash in the pan. Annual dividends have grown steadily since it listed on the London Stock Exchange in 2018.

Severe share price weakness has driven the trust’s dividend yield through the roof. It also means that, at 48.5p per share, the trust trades at a whopping 46% discount to its net asset value (NAV) per share.

I think this represents an attractive buying opportunity, even though threats remain on the horizon. With clean energy assets in the US, it’s vulnerable to changing environmental policy under President Trump. It may also face further interest rate pressures if new trade tariffs spike inflation.

However, the company also has significant growth opportunities regardless of what happens in the US, with operations in both Europe and Asia as well. It’s also important to remember that the green energy transition is a long-term theme, so any turbulence in North America may be temporary.

The Renewables Infrastructure Group

The Renewables Infrastructure Group (or TRIG for short) is another potentially lucrative way for income chasers to profit from the green economy. It’s a share I actually own in my own portfolio.

This company has a great dividend track record dating back to when it listed in London in 2013. Dividends have risen each year bar one (in financial 2021, when the annual payout was frozen).

As you can see from the chart, TRIG’s shares have slumped due to the pressure of higher-than-usual interest rates and the risk of higher rates persisting. Yet this means that the value on offer is similarly substantial.

The forward dividend yield is above 10%. And with its share price at 73.1p, the company trades at a 37.9% discount to its NAV per share.

Generating power from green sources can be problematic during periods of unfavourable weather. But with a geographic footprint spanning Europe, and operations spanning wind power, solar energy, and battery storage, TRIG’s deep diversification helps limit any potential damage at group level.

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