3 UK Dividend Stocks To Enhance Your Portfolio

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The United Kingdom's FTSE 100 index has recently experienced downward pressure, influenced by weak trade data from China and global economic uncertainties. In such a volatile market environment, dividend stocks can offer investors a measure of stability and income, making them an attractive option for those looking to enhance their portfolios with reliable returns amidst fluctuating indices.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

WPP (LSE:WPP)

6.65%

★★★★★★

Man Group (LSE:EMG)

7.39%

★★★★★☆

Keller Group (LSE:KLR)

3.16%

★★★★★☆

4imprint Group (LSE:FOUR)

5.06%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.67%

★★★★★☆

Treatt (LSE:TET)

3.19%

★★★★★☆

NWF Group (AIM:NWF)

5.06%

★★★★★☆

James Latham (AIM:LTHM)

7.14%

★★★★★☆

OSB Group (LSE:OSB)

6.98%

★★★★★☆

Grafton Group (LSE:GFTU)

3.69%

★★★★★☆

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

We'll examine a selection from our screener results.

Bunzl

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

Overview: Bunzl plc is a distribution and services company operating in North America, Continental Europe, the United Kingdom, Ireland, and internationally with a market cap of £7.87 billion.

Operations: Bunzl plc generates revenue of £11.78 billion from its Packaging & Containers segment.

Dividend Yield: 3.1%

Bunzl's dividend payments have shown volatility over the past decade, with a recent increase of 8.2% in total dividends for 2024, marking its 32nd consecutive year of growth. Despite a low dividend yield compared to top UK payers, the payouts are well-covered by earnings and cash flows. However, Bunzl's high debt level and volatile share price may raise concerns about sustainability. The company expects moderate revenue growth in 2025 driven by acquisitions.

LSE:BNZL Dividend History as at May 2025
LSE:BNZL Dividend History as at May 2025

Man Group

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

Overview: Man Group Limited is a publicly owned investment manager with a market cap of approximately £1.98 billion.

Operations: Man Group Limited generates revenue of $1.43 billion from its Investment Management Business segment.

Dividend Yield: 7.4%

Man Group's dividend yield is among the top 25% in the UK market, supported by a payout ratio of 67% and a cash payout ratio of 32.3%, indicating sustainability. Despite past volatility, dividends have grown over the last decade. Recent earnings growth of 27.4% enhances its appeal, though potential acquisitions like Bardin Hill could impact future payouts. The stock trades at a significant discount to estimated fair value, offering good relative value for investors focused on dividends.