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The UK market is showing signs of resilience, with the FTSE 100 poised to break a two-day losing streak amid broader global economic optimism and significant financial events. In this context, dividend stocks continue to be a compelling option for investors looking for income-generating investments in a landscape marked by legislative changes and monetary policy anticipations.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.94% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.14% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.94% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.67% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.71% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.55% | ★★★★★☆ |
| Rio Tinto Group (LSE:RIO) | 6.41% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.60% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.48% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 6.49% | ★★★★★☆ |
Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
PageGroup
Simply Wall St Dividend Rating: ★★★★★☆
Overview: PageGroup plc operates as a recruitment consultancy offering services across the UK, Europe, the Middle East, Africa, Asia Pacific, and the Americas, with a market capitalization of approximately £1.33 billion.
Operations: PageGroup plc generates its revenue primarily from recruitment services, which amounted to £2.01 billion.
Dividend Yield: 7.6%
PageGroup's dividend yield stands at 7.61%, placing it in the top quartile of UK dividend payers. Despite a volatile history, dividends have grown over the past decade. Currently, dividends are well-supported by earnings and cash flows, with payout ratios at 67.1% and 83.2% respectively. However, profit margins have dipped to 3.8% from last year's 7%. The stock trades below estimated fair value by 10.8%, suggesting potential undervaluation relative to peers.
Pets at Home Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Pets at Home Group Plc is a specialist omnichannel retailer in the UK, offering pet food, related products, and accessories with a market capitalization of approximately £1.41 billion.
Operations: Pets at Home Group Plc generates its revenues primarily through two segments: retail sales amounting to £1.33 billion and veterinary services which contributed £146.50 million.
Dividend Yield: 4.2%
Pets at Home Group's dividend yield of 4.19% trails behind the top UK dividend payers. Despite this, dividends are well-supported, with a stable 10-year growth history and recent reaffirmation at their AGM on July 11, 2024. The firm trades at a significant discount to estimated fair value by 40.3%, indicating potential undervaluation. Dividends are financially sustainable, backed by both earnings and cash flows with payout ratios of 77.2% and 36.4%, respectively.