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The United Kingdom's stock market has recently faced turbulence, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting ongoing global economic challenges. In such a volatile environment, dividend stocks can offer a degree of stability and income potential for investors seeking to navigate uncertain markets.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Keller Group (LSE:KLR) | 3.57% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.83% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 7.83% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.92% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.71% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.80% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.76% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.28% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.00% | ★★★★★☆ |
| RS Group (LSE:RS1) | 3.36% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
We'll examine a selection from our screener results.
Paragon Banking Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Paragon Banking Group PLC offers financial products and services in the United Kingdom, with a market capitalization of £1.57 billion.
Operations: Paragon Banking Group PLC generates revenue from its Mortgage Lending segment at £280.50 million and Commercial Lending segment at £115.20 million in the United Kingdom.
Dividend Yield: 5.1%
Paragon Banking Group's dividend payments are well-covered by earnings, with a payout ratio of 45.6%, and cash flows, reflected in a low cash payout ratio of 3.6%. Despite an increase in dividends over the past decade, their track record remains volatile. Recent financials show net income growth to £186 million for the year ended September 2024. The company is trading at good value compared to peers but offers a lower yield than top UK dividend payers.
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Click to explore a detailed breakdown of our findings in Paragon Banking Group's dividend report.
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Our valuation report here indicates Paragon Banking Group may be undervalued.
Plus500
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Plus500 Ltd. is a fintech company that provides technology-based trading platforms across Europe, the United Kingdom, Australia, and internationally, with a market cap of £2.08 billion.
Operations: Plus500 Ltd. generates revenue primarily through its CFD Trading segment, which amounts to $750.80 million.
Dividend Yield: 5.5%
Plus500's dividends are well-covered by earnings, with a payout ratio of 24.9%, and cash flows, indicated by a cash payout ratio of 36.5%. Despite dividend growth over the past decade, payments have been volatile. The stock trades at 35.8% below estimated fair value and offers good relative value compared to peers; however, its yield of 5.52% is slightly below the top UK dividend payers' threshold of 5.7%.