In This Article:
The United Kingdom's FTSE 100 index recently experienced a downturn, influenced by weak trade data from China, highlighting the global interconnectedness of markets and the challenges facing economies still recovering from pandemic impacts. In such volatile conditions, dividend stocks can offer a measure of stability and income potential for investors seeking to navigate uncertain times.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.17% | ★★★★★★ |
| Man Group (LSE:EMG) | 6.35% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.63% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.12% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 8.16% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.48% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.94% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.64% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.22% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.66% | ★★★★★☆ |
Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Midwich Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Midwich Group plc, with a market cap of £248.62 million, distributes audio visual solutions to trade customers across the United Kingdom, Ireland, Europe, the Middle East, Africa, the Asia Pacific, and North America.
Operations: The primary revenue segment for Midwich Group plc is Wholesale - Computer Peripherals, generating £1.32 billion.
Dividend Yield: 6.8%
Midwich Group offers a high dividend yield of 6.79%, placing it in the top 25% of UK dividend payers. However, its dividends have been volatile over the past eight years, lacking stability and consistent growth. Despite this, dividends are well-covered by both earnings and cash flows with payout ratios of 74.6% and 36.3%, respectively. The stock trades at good value compared to peers but faces challenges with declining earnings forecasts and high debt levels.
Capital
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Capital Limited, along with its subsidiaries, offers a range of drilling solutions to clients in the minerals industry and has a market cap of £151.12 million.
Operations: Capital Limited's revenue from its Business Services segment amounts to $333.59 million.
Dividend Yield: 3.9%
Capital's dividend yield of 3.92% is below the top 25% in the UK, but its low payout ratios—26.1% from earnings and 24% from cash flows—suggest sustainability. However, dividends have been volatile over the past decade, indicating unreliability despite growth during this period. The company trades at a significant discount to estimated fair value and analyst price targets suggest potential upside. Recent revenue reports show steady annual growth from USD 318.4 million to USD 348 million in 2024.