Dividend stocks delivered some staggeringly strong returns in 2025, with the FTSE 100 index as a whole delivering the biggest gains since 2009.

Yet, even with such tremendous growth under its belt, the UK stock market might still have some big winners in 2026. And right now, institutional investors have their targets locked on a handful of more dividend-paying stocks set to potentially deliver explosive gains this year.

So the question is, what are these potential winners?

1. B&M European Value Retail

After strategic missteps, inventory mismanagement, missed earnings targets, and even a minor accounting scandal, B&M (LSE:BME) shares have been utterly decimated in the last few years. In fact, its market-cap has collapsed by almost 70% in the last two years.

But with a new leader at the helm executing a fresh turnaround strategy, some institutional investors believe a massive buying opportunity may have emerged.

Revenue growth remains lacklustre, but sales have begun slowly ticking up again. And with international operations building momentum, the experts at Berenberg believe B&M shares could surge by 70% from current levels if the turnaround is successful.

Obviously, the stock comes with significant execution risk. And the fierce competitive landscape from other discount retailers only adds to the challenge. But with a 7.5% yield, the dividend stock could be worth a closer look.

2. Domino’s Pizza Group

Domino’s Pizza (LSE:DOM) is another dividend-paying stock that analysts believe could be ripe for a turnaround. With the CEO recently stepping down and the economic landscape for pizza takeaway less than ideal, the company’s similarly been under significant pressure, with its shares being slashed in half since 2024 kicked off.

But with a new loyalty programme rolled out this year, signs of improving unit economics emerging in Ireland, and an industry-leading store footprint, the team at Peel Hunt has issued a 275p share price target – roughly 52% higher than where the stock trades today.

Of course, while the customer loyalty programme had a successful pilot scheme, that doesn’t mean a full-scale rollout will meet performance expectations. Continued macroeconomic weakness alongside UK pizza market saturation may prevent this target from being hit. Nevertheless, with a 6.1% yield on offer, this is another dividend stock worth investigating further.

3. Mortgage Advice Bureau

Another dividend stock on Berenberg’s shopping list is Mortgage Advice Bureau (LSE:MAB1). Just last month, its analysts reiterated a 1,150p share price target – roughly 50% ahead of where the stock trades today.

The forecast mostly revolves around a UK housing market recovery narrative. An estimated 1.8 million fixed-rate mortgages are due to switch to variable rates throughout 2026, up from around 1.6 million in 2025. And with many households likely seeking to refinance, it creates a potentially lucrative advisory opportunity for this business.

The company’s facing increasingly fierce competition from large banks offering mortgage advisory services directly. What’s more, the market seems to be pricing in multiple interest rate cuts throughout 2026. But if these fail to materialise, mortgage rates could actually start climbing again, lowering refinancing demand.

With a 2.8% dividend yield on offer, Mortgage Advice Bureau could still prove to be a lucrative income opportunity. That’s why I think it deserves a deeper dive. But there’s no denying significant cyclical risk is attached.