3 UK Dividend Stocks To Watch With Up To 5.1% Yield

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Amidst the recent downturn in the FTSE 100, driven by weak trade data from China and global economic pressures, investors are increasingly seeking stable income sources to weather market volatility. In such an environment, dividend stocks can provide a reliable stream of income, making them an attractive option for those looking to navigate uncertain times with steady returns.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

WPP (LSE:WPP)

6.48%

★★★★★★

Man Group (LSE:EMG)

7.48%

★★★★★☆

4imprint Group (LSE:FOUR)

5.03%

★★★★★☆

DCC (LSE:DCC)

4.16%

★★★★★☆

Treatt (LSE:TET)

3.27%

★★★★★☆

OSB Group (LSE:OSB)

7.11%

★★★★★☆

NWF Group (AIM:NWF)

4.85%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.56%

★★★★★☆

James Latham (AIM:LTHM)

7.08%

★★★★★☆

Grafton Group (LSE:GFTU)

3.72%

★★★★★☆

Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.

We'll examine a selection from our screener results.

Card Factory

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

Overview: Card Factory plc is a specialist retailer of cards, gifts, and celebration essentials operating in the United Kingdom and internationally, with a market cap of £328.65 million.

Operations: Card Factory plc generates revenue through its segments, with £506.80 million from Cardfactory Stores, £22.20 million from Partnerships, and £13.20 million from Cardfactory Online.

Dividend Yield: 5.1%

Card Factory recently announced a proposed final dividend of 3.6 pence per share, reflecting its commitment to shareholder returns despite a history of volatile dividends. The company's dividends are well covered by both earnings and cash flows, with payout ratios of 34.8% and 23.8%, respectively. However, its dividend yield is below the top tier in the UK market at 5.11%. Trading significantly below estimated fair value suggests potential for capital appreciation alongside dividends.

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

Mears Group

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

Overview: Mears Group plc, with a market cap of £337.13 million, provides outsourced services to both public and private sectors across the United Kingdom through its subsidiaries.

Operations: Mears Group generates revenue through its Management segment, which accounts for £576.70 million, and its Maintenance segment, contributing £555.81 million.

Dividend Yield: 4.1%

Mears Group has proposed a final dividend of 11.25 pence per share, increasing the annual total to 16.00 pence, despite a history of volatile dividends. The payout is well covered by earnings and cash flows with ratios of 31.8% and 14.2%, respectively, but its yield is below top UK payers at 4.1%. Recent earnings growth and a significant £230 million contract with Milton Keynes City Council bolster its financial position for future distributions.