More than three-quarters of funds in the IA UK Equity Income sector own healthcare company GSK (formerly GlaxoSmithKline) among their top 10 holdings, data from Trustnet can reveal, while more than half own oil titan Shell.
GSK was the eighth largest domestic dividend payer last year, according to data from Computershare, but is the most popular choice among UK fund managers looking for income.
Some 76.9% of funds in the IA UK Equity Income peer group own the stock in their top 10 holdings, although the number of funds with exposure to the company may be higher if including those that own the stock outside of their largest positions.
BNY Mellon UK Income has the highest allocation to the stock, with a 7.7% position. CT UK Equity Alpha Income and CT UK Equity Income are the only other two with more than 7% weighted towards GSK.
The company shares cost £20.97, leaving it on a price-to-earnings (P/E) ratio of 12.25x. It has a dividend yield of 3.1%.
In February, the firm’s 2025 full-year figures showed sales grew by 7% before currency movements to reach £32.7bn, with speciality medicines the key contributor, up 17%.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Luke Miels’ first set of results in the GSK hotseat were reassuring. While guidance didn’t veer far from market forecasts, retention of his predecessors’ midterm sales target helped provide a further boost to sentiment on results day."
However, he noted that shares have risen sharply recently, up 43.4% over the past 12 months, with the valuation now anticipating some “material upgrades to consensus forecasts”.
“GSK has the ingredients to get there, but the current valuation presents more downside exposure than there’s been for some time,” he said.
Source: FE Analytics
In second place, appearing in the top 10 of more than half of the IA UK Equity Income sector is Shell. The oil giant has been on a sharp upwards trajectory since the start of the Iran war in February, with shares now 22.7% higher over the past 12 months.
Iran has effectively blocked the Strait of Hormuz, cutting off the flow of oil from the Gulf states to the rest of the world. Around a fifth of all oil produced passes through the Strait.
As a result, the oil price has spiked to more than $100 per barrel, leaping higher again last week as US president Donald Trump suggested the war could be more protracted than many had hoped for, promising future military action.
Shell is the third-largest company in the UK, representing 6.4% of the FTSE 100 index, and was the second-largest dividend payer in 2025. At present, shares cost £35.09, with the company on a P/E of 14.5x. It has a dividend yield of 3.04%.
BNY Mellon UK Income once again has the largest weighting to the company within its peer group with an almost 10% allocation to the oil major. UBS UK Equity Income and HSBC Income round out the top three, with allocations of 8.6% and 7.4% respectively.
Elsewhere, the largest stock in the FTSE 100 (and the largest dividend payer of 2025) is global banking group HSBC. It is represented in the top 10 holdings of 49% of the peer group.
Four funds have more than 10% in the stock, including Santander Enhanced Income Portfolio, Santander Equity Income Unit Trust, Fidelity UK Equity Income and BNY Mellon UK Income (again).
Banks have become popular with investors in recent years as rising interest rates have improved their profitability. NatWest and Lloyds are also the top 15 largest dividend payers in 2025 and remain popular with income funds, although not to the same degree as HSBC. The latter two stocks are top 10 positions in around a third of IA UK Equity Income funds.
Left out in the cold meanwhile is drinks brand Diageo, where just two funds (or 3% of the sector) have made the company a top 10 weighting. Consumer stocks have struggled in recent years as a cost-of-living crisis caused by higher inflation has caused investors to worry about a lack of consumer confidence. Its shares are down 31% over the past 12 months.
In February, the company halved its interim dividend, paying out 20 cents per share, down from 40.5 cents per share a year prior.
Chief executive Dave Lewis said: “We are confident that this is the right action which will ensure that Diageo can reinforce its position as the leading international spirits business and drive stronger shareholder value over the coming years.”
Playtech, the online gambling company, was the 13th largest dividend payer last year but no IA UK Equity Income funds include it in their top 10 holdings as the company is facing a legal battle over its hiring of intelligence firm Black Cube to investigate rival Evolution.