For UK retail investors building a global income portfolio, the ideal holdings combine four characteristics:
- Reliable dividends
- Growing earnings
- Dividend growth potential
- Reasonable valuation with share-price upside
Global dividends are expected to reach a record US$2.47 trillion in 2026, although growth is slowing to around 2.9% as companies prioritise sustainable payout growth over aggressive increases.
The following 10 companies provide exposure across North America, Europe and Asia-Pacific while balancing income and growth.
Snapshot Table
| Company | Region | Sector | Forecast Yield | Forecast EPS Growth (2026) | Forecast Dividend Growth | Consensus Target Upside |
| JPMorgan Chase | US | Banking | 2.3% | 8-10% | 8% | 10% |
| Broadcom | US | AI & Semiconductors | 1.5% | 25-30% | 10%+ | 14% |
| Microsoft | US | Technology | 0.7% | 12-15% | 10% | 10% |
| Johnson & Johnson | US | Healthcare | 3.2% | 5-7% | 4-5% | 8% |
| Shell | UK | Energy | 4.4% | 6-8% | 5% | 8% |
| Unilever | UK | Consumer Staples | 3.5% | 5-7% | 4-5% | 14-18% |
| AstraZeneca | UK | Healthcare | 2.1% | 10-12% | 3% | 12% |
| Novartis | Switzerland | Healthcare | 3.7% | Flat to -3% | 3-4% | 8% |
| Toyota Motor | Japan | Industrials | 2.8% | 7-10% | 7% | 12% |
| DBS Group | Singapore | Banking | 5.5% | 5-8% | 5% | 10% |
Yields, growth forecasts and target upside are consensus estimates and rounded.
1. JPMorgan Chase (NYSE:JPM)
The world’s highest-quality large bank remains a core income holding. Higher interest rates continue to support profitability while buybacks and dividend growth remain attractive.
Why own it?
- Strong capital position
- Market-leading investment bank
- Consistent dividend growth
2. Broadcom (NASDAQ:AVGO)
Broadcom is unusual among AI stocks because it combines rapid earnings growth with a growing dividend. AI revenue more than doubled year-on-year in recent results and analysts continue to forecast strong upside.
Why own it?
- AI infrastructure leader
- Double-digit dividend growth
- Strong free cash flow generation
3. Microsoft (NASDAQ:MSFT)
Although the yield is modest, Microsoft’s dividend has compounded at roughly double-digit rates for years.
Why own it?
- Azure AI growth
- AAA-quality balance sheet
- Exceptional dividend sustainability
4. Johnson & Johnson (NYSE:JNJ)
A defensive healthcare giant with one of the longest dividend growth records globally.
Why own it?
- Recession-resistant earnings
- Diversified healthcare exposure
- Strong cash generation
5 great and reliable income stocks for any retirement portfolio
5. Shell (LON:SHEL)
Shell recently increased its dividend by 5% after reporting profits ahead of expectations. The company continues to return substantial cash through dividends and buybacks.
Why own it?
- Attractive yield
- Strong energy trading business
- Significant shareholder returns
6. Unilever (LON:ULVR)
The consumer goods giant offers resilient cash flows from brands such as Dove, Hellmann’s and Ben & Jerry’s.
Why own it?
- Defensive earnings profile
- Emerging market growth
- Attractive valuation versus peers
7. AstraZeneca (LON:AZN)
For investors seeking dividend growth rather than immediate yield, AstraZeneca remains one of Europe’s most attractive pharmaceutical companies. Management expects continued earnings growth supported by oncology drugs and a large pipeline.
Why own it?
- Strong drug pipeline
- Long-term growth target
- Healthcare sector diversification
AstraZeneca expands weight-loss portfolio with CSPC deal
8. Novartis (SWX:NOVN)
Patent expiries create near-term pressure, but Novartis still generates substantial cash and offers a dependable dividend.
Why own it?
- Defensive healthcare exposure
- Attractive yield
- Strong balance sheet
9. Toyota Motor (TYO:7203)
Toyota remains one of the world’s strongest industrial companies, benefiting from hybrid vehicle leadership and improving shareholder returns.
Why own it?
- Global manufacturing scale
- Improving capital allocation
- Growing dividends
10. DBS (SGX:D05)
Singapore’s largest bank provides one of the highest-quality yields available in global equities.
Why own it?
- High return on equity
- Strong capital ratios
- Attractive 5%+ income stream
How UK Investors Can Buy Them
Most UK investors can purchase these shares through:
Holding these shares inside a Stocks & Shares ISA avoids UK tax on dividends and capital gains.
Portfolio Construction Example
A balanced global income portfolio might allocate:
| Sector | Allocation |
| Financials (JPMorgan, DBS) | 25% |
| Healthcare (AstraZeneca, Novartis, J&J) | 25% |
| Technology (Microsoft, Broadcom) | 20% |
| Consumer Staples (Unilever) | 10% |
| Energy (Shell) | 10% |
| Industrials (Toyota) | 10% |
UK retail investors building a global income portfolio, the ideal holdings combine four characteristics. Such a portfolio would currently generate an estimated yield around 3.1%-3.5%, while still offering mid-to-high single-digit earnings growth and meaningful dividend growth potential over the next decade.
Disclaimer: The author Steven Frazer has a personal interest in Broadcom.
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