When building a long‑term portfolio of dividend shares, it’s not just about the highest yields. What really matters is consistent growth backed by solid profits, sensible payout ratios, and a manageable balance sheet. 

If payouts rise 30%-70% over a few years and are well covered by earnings, that’s more meaningful than a stretched 10% yield that risks a cut.

With that in mind, I’ve identified three FTSE stocks forecast to grow dividends by 40% or more by 2028: Bellway (LSE: BWY), Lloyds and Rolls‑Royce.

The question is: how accurate are these forecasts?

Kicking the tyres

Starting with Lloyds, the dividend per share (DPS) was 3.64p in 2025. Forecasts point to 4.18p this year, 4.6p in 2027 and 5.06p in 2028. That’s around a 40% total increase over three years.

That steady growth combined with a starting yield comfortably ahead of cash savings can really add up for patient investors.

Bellway and Rolls‑Royce are even punchier. Bellway’s ordinary DPS is currently 70p per share, forecast to edge up to about 70.6p this year, then jump to 90.1p in 2027 and 100.9p in 2028. That’s a total increase of roughly 57% between 2025 and 2028.

Rolls‑Royce starts from a much smaller payout, with a total dividend of only 9.5p per share for 2025 after its recent restart. But brokers expect 12.6p in 2026, 14p in 2027 and around 16.7p in 2028, which is about 76% growth over the same period.

Those last two names are clearly more cyclical and rely on continued earnings momentum, but the dividend growth profile is hard to ignore.

Taking a closer look at Bellway

Bellway is the outlier here. Although it sits alongside two very well‑known FTSE 100 giants, it’s a FTSE 250 mid‑cap with an excellent track record. The housebuilder has paid dividends for 41 years without interruption, which is impressive given the number of housing slumps and interest rate cycles it has lived through.

The dividend policy targets cover of around 2.5 times earnings, with the current payout ratio at about 52.7%. That’s a comfortable middle ground — generous, but not reckless.

The balance sheet shows very low debt of about £48.7m and cash of roughly £146m. Impressive numbers, even after launching a £150m share buyback.

Importantly, cash coverage of 2.64 times gives it extra breathing space if the housing market slows (or build costs rise). Basically, there’s enough cash to fund operations and still pay shareholders without having to lean heavily on borrowing.

That doesn’t mean it’s risk‑free. As a housebuilder, it’s exposed to the domestic housing cycle. Weaker prices, higher mortgage rates or tighter lending could all hurt profits or pause dividend hikes.

The bottom line

For UK investors, Bellway’s an interesting example of what quality dividend growth should look like. It’s got a four‑decade track record, a sensible payout ratio, and strong cash coverage. That means a forecast of more than 50% in three years is not unrealistic.

But whether it’s right for you depends on how comfortable you are with the ups and downs of the housing market. For investors willing to ride out volatility for the chance of strong income growth, it’s a share that deserves a closer look — in addition to more familiar names including Lloyds and Rolls‑Royce.