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Amidst the recent downturn in the FTSE 100, driven by weak trade data from China and its impact on global markets, investors are increasingly seeking stability in dividend stocks. In this context, identifying stocks with strong dividend yields can be a prudent strategy for those looking to secure steady income despite market volatility.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

James Latham

Simply Wall St Dividend Rating: ★★★★★★

Overview: James Latham plc, with a market cap of £269.47 million, imports and distributes timbers, panels, and decorative surfaces across the United Kingdom, the Republic of Ireland, Europe, and internationally.

Operations: The company's revenue primarily comes from its Timber Importing and Distribution segment, which generated £366.51 million.

Dividend Yield: 5.8%

James Latham offers a compelling dividend profile with stable and growing dividends over the past decade, supported by a low payout ratio of 30%, ensuring coverage by earnings. Its dividend yield of 5.83% places it in the top quartile among UK payers. Although cash flow coverage is tighter at an 87.4% payout ratio, dividends remain reliable. The stock's attractive valuation with a price-to-earnings ratio of 11.9x further enhances its appeal for income-focused investors.

• Navigate through the intricacies of James Latham with our comprehensive dividend report here.

• Our expertly prepared valuation report James Latham implies its share price may be too high.

Mears Group

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Mears Group plc, with a market cap of £324 million, offers outsourced services to both public and private sectors in the United Kingdom.

Operations: Mears Group generates revenue through its Management segment at £591.63 million and Maintenance segment at £551.73 million in the United Kingdom.

Dividend Yield: 4%

Mears Group's dividend profile is marked by a low yield of 3.97%, below the UK market's top quartile, and an unstable track record over the past decade. However, recent guidance suggests robust financial performance with anticipated revenues of £1.13 billion for 2024, supporting its dividend sustainability through a low payout ratio of 33.4% and cash payout ratio of 10.7%. Share repurchases further indicate management's confidence in future prospects despite volatile historical dividends.

• Take a closer look at Mears Group's potential here in our dividend report.

• In light of our recent valuation report, it seems possible that Mears Group is trading behind its estimated value.

TBC Bank Group

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: TBC Bank Group PLC operates through its subsidiaries to offer banking, leasing, insurance, brokerage, and card processing services to corporate and individual customers in Georgia, Azerbaijan, and Uzbekistan with a market cap of £1.54 billion.

Operations: TBC Bank Group PLC generates revenue from its operations in Uzbekistan, amounting to GEL 236.42 million.

Dividend Yield: 7.1%

TBC Bank Group's dividend yield of 7.11% places it in the top quartile of UK dividend payers, supported by a low payout ratio of 32.6%, indicating sustainability. Despite only a seven-year history, dividends have been stable and growing with little volatility. Recent earnings growth and strong financial performance bolster its ability to maintain dividends, though its allowance for bad loans is relatively low at 76%. Recent management changes include appointing Giorgi Giguashvili as Company Secretary.

• Get an in-depth perspective on TBC Bank Group's performance by reading our dividend report here.

• Insights from our recent valuation report point to the potential undervaluation of TBC Bank Group shares in the market.

Summing It All Up

• Get an in-depth perspective on all 57 Top UK Dividend Stocks by using our screener here.

• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.

• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:LTHM LSE:MER and LSE:TBCG.

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