In This Article:
The United Kingdom market has climbed 1.1% in the last 7 days and is up 6.9% over the past 12 months, with earnings expected to grow by 14% per annum over the next few years. In this favorable environment, identifying dividend stocks that offer strong yields can be a prudent strategy for income-focused investors.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.73% | ★★★★★★ |
| Shoe Zone (AIM:SHOE) | 9.80% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.33% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.11% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.88% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.48% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.69% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.33% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.98% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.36% | ★★★★★☆ |
Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.
We'll examine a selection from our screener results.
Shoe Zone
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Shoe Zone plc operates as a footwear retailer in the United Kingdom, with a market cap of £82.05 million.
Operations: Shoe Zone plc generates £166.74 million in revenue from its footwear retail operations in the United Kingdom.
Dividend Yield: 9.8%
Shoe Zone's dividend payments are well covered by both earnings (35.8% payout ratio) and cash flows (30% cash payout ratio). Despite a volatile dividend track record over the past 10 years, recent growth in earnings by 50.2% and a high yield of 9.8%, placing it in the top 25% of UK dividend payers, make it attractive. However, future earnings are forecast to decline by an average of 37.2% per year for the next three years, raising concerns about sustainability.
Burberry Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Burberry Group plc, with a market cap of £2.23 billion, manufactures, retails, and wholesales luxury goods under the Burberry brand through its subsidiaries.
Operations: Burberry Group plc generates its revenue primarily through Retail/Wholesale (£2.91 billion) and Licensing (£63 million).
Dividend Yield: 9.7%
Burberry Group's dividend yield of 9.74% ranks in the top 25% of UK dividend payers. However, its dividends have been volatile over the past decade, with significant annual drops exceeding 20%. Despite this, the current payout ratios—82.5% for earnings and 73% for cash flows—indicate coverage by both metrics. Recent financials show a decline in retail revenue to £458 million from £589 million last year and forecasted operating losses for H1 FY2025.