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3 UK Dividend Stocks To Enhance Your Portfolio

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As the UK market grapples with challenges stemming from weak global cues and faltering trade data from China, the FTSE 100 index has recently experienced a downturn, reflecting broader economic uncertainties. In such an environment, dividend stocks can offer a degree of stability and income potential, making them a compelling consideration for investors seeking to enhance their portfolios amidst fluctuating market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

WPP (LSE:WPP)

6.37%

★★★★★★

Man Group (LSE:EMG)

6.70%

★★★★★☆

Keller Group (LSE:KLR)

3.46%

★★★★★☆

Dunelm Group (LSE:DNLM)

8.17%

★★★★★☆

OSB Group (LSE:OSB)

7.69%

★★★★★☆

4imprint Group (LSE:FOUR)

3.26%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.87%

★★★★★☆

NWF Group (AIM:NWF)

4.76%

★★★★★☆

Grafton Group (LSE:GFTU)

4.59%

★★★★★☆

James Latham (AIM:LTHM)

7.41%

★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

IG Group Holdings

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

Overview: IG Group Holdings plc is a fintech company that operates in the online trading business globally, with a market cap of £3.32 billion.

Operations: IG Group Holdings plc generates revenue primarily from its brokerage segment, amounting to £1.01 billion.

Dividend Yield: 4.9%

IG Group Holdings has demonstrated consistent dividend reliability and growth over the past decade, with recent increases in interim dividends to 13.86 pence per share. The company's dividends are well-covered by earnings and cash flows, boasting a payout ratio of 47.5% and a cash payout ratio of 28.9%. While its dividend yield of 4.92% is below the UK market's top quartile, IGG trades at a favorable valuation relative to its peers and industry benchmarks. Recent buybacks totaling £250.75 million underscore strong capital management strategies alongside ongoing M&A pursuits aimed at closing product gaps without compromising financial stability or shareholder returns.

LSE:IGG Dividend History as at Mar 2025
LSE:IGG Dividend History as at Mar 2025

Rathbones Group

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

Overview: Rathbones Group Plc, with a market cap of £1.69 billion, provides wealth and asset management services to private clients, charities, trustees, and professional partners in the UK, Channel Islands, and internationally.

Operations: Rathbones Group Plc generates revenue through its Asset Management segment, which contributes £81.70 million, and its Wealth Management segment, which accounts for £814.20 million.