Should you invest in UK dividend stocks?

Dividend stocks are some of the most popular investments in the UK, particularly among those looking for regular income or liquidity in their portfolio. However, dividend growth has been slowing recently.

UK companies paid out £14 billion in dividends in the first quarter of 2025, a 4.6% drop compared to the same period a year ago. Reduced special dividends, often known as extra dividends, and cuts from three companies lowered the total. These included Vodafone, Burberry and Bellway Homes.