There’s a lot of debate about which UK stocks provide the best passive income. From popular FTSE 100 stalwarts to high-yielding (but speculative) renewables – it’s tough to pick.

For the most part, it comes down to individual risk tolerance and sector familiarity. Personally, I find a diversified selection to be the best approach: harnessing high yields while limiting risk with defensive options.

But what makes a ‘good’ dividend stock?

Not all dividends are equal

Some companies pay a high yield for a year or two and then cut it when times get tough, which is the last thing you want if you’re relying on that income.

Usually, more sustainable dividends have three things going for them: a decent payment history, strong cash generation, and a sensible payout ratio (they’re not paying out almost everything they earn).

That combination gives the company room to keep paying — and hopefully growing — the dividend, even when the economy hits a rough patch.

Recently, I identified a promising FTSE 250 dividend stock that does a decent job of meeting these criteria.

A foreign financial powerhouse

TBC Bank Group‘s (LSE: TBCG) a lesser-known Georgian bank listed on the London Stock Exchange (LSE).

Immediately, this raises some eyebrows: foreign unfamiliarity, currency exchange risk and geopolitical uncertainty. But the bank’s numbers are undeniable: a 10-year total return of 557%, equating to almost 21% a year on average.

Comparatively, the FTSE 100 has returned roughly 9% a year on average over the long term when you include dividends. So a £3,000 investment 10 years ago would have netted the lucky investor almost £20,000 by now (with dividends reinvested). And with the current yield hovering around 6%, that would pay out £1,200 a year in dividends.

Ok, great stuff. But were the past 10 years a once-off fluke, or can the bank keep delivering?

A solid business with obvious risk

TBC’s one of the biggest banks in Georgia, with growing operations in Uzbekistan, and it’s been expanding quickly as those economies develop.

But due to its location, political or economic shocks there could hit profits and the share price more sharply than a big developed‑market bank. And as with all banks, if interest rates or bad debts move the wrong way, earnings and dividends can come under pressure.

Still, its recent results are strong.

In 2025, it reported record net income of about £387m, up from £369m in 2024. It boasts an impressive return on equity (ROE) of 23.6%, far higher than most UK high street banks.

Its loan book grew by about 17% over the year, and deposits rose too, showing it’s still winning customers and growing its balance sheet.

Crucially for dividend hunters, the bank’s capital ratios are strong and comfortably above regulatory minimums, which gives it room to keep rewarding shareholders while still funding growth.

The bottom line

For a UK investor chasing passive income, TBC Bank offers an interesting mix of strong profit growth, high ROE and a well‑covered dividend.

It’s not a low‑risk choice — emerging‑market banks never are — but as part of a diversified portfolio, it’s a compelling candidate to consider.