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In the face of recent challenges in the UK market, highlighted by the FTSE 100's decline due to weak trade data from China and falling commodity prices, investors are increasingly seeking stable income sources. Amidst this backdrop, dividend stocks can offer a reliable stream of income, making them an attractive option for those looking to navigate uncertain economic conditions while potentially benefiting from consistent payouts.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.79% | ★★★★★★ |
| Man Group (LSE:EMG) | 7.81% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.45% | ★★★★★☆ |
| Treatt (LSE:TET) | 3.28% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.82% | ★★★★★☆ |
| DCC (LSE:DCC) | 4.09% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.70% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.43% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.55% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.01% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Arbuthnot Banking Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market cap of £150.35 million.
Operations: Arbuthnot Banking Group PLC generates revenue from several segments including Wealth Management (£13.67 million), Asset Alliance Group (£15.34 million), Renaissance Asset Finance (£12.56 million), Banking excluding Wealth Management (£95.64 million), and Arbuthnot Commercial Asset Based Lending (£19.93 million).
Dividend Yield: 5.3%
Arbuthnot Banking Group recently announced a total dividend of 69 pence per share for 2024, up from 46 pence in 2023, indicating growth despite historical volatility. The payout ratio is low at 32.2%, suggesting dividends are well-covered by earnings. However, the dividend yield of 5.31% is lower than top UK payers and past payments have been unreliable. The bank's high level of bad loans (3.4%) may pose risks to future stability.
IG Group Holdings
Simply Wall St Dividend Rating: ★★★★★☆
Overview: IG Group Holdings plc is a fintech company that operates in the online trading industry globally, with a market cap of £3.70 billion.
Operations: IG Group Holdings plc generates revenue from its brokerage segment, amounting to £1.01 billion.
Dividend Yield: 4.4%
IG Group Holdings offers a reliable dividend yield of 4.39%, with consistent growth and stability over the past decade. The dividends are well-covered by both earnings and cash flows, with payout ratios of 47.5% and 28.6%, respectively, ensuring sustainability. Although its yield is below the top UK payers' average, IGG trades at a significant discount to its estimated fair value, suggesting good relative value within its industry despite lower yields compared to peers.