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As the UK market navigates through political uncertainties and economic forecasts, investors may find solace in dividend stocks, known for offering potential income stability amidst volatility. Given the current market dynamics, a good dividend stock typically features robust fundamentals and a history of resilient payouts, making it an attractive option for those seeking to mitigate risk while aiming for returns.
Top 10 Dividend Stocks In The United Kingdom
Name | Dividend Yield | Dividend Rating |
James Latham (AIM:LTHM) | 5.94% | ★★★★★★ |
Keller Group (LSE:KLR) | 3.23% | ★★★★★☆ |
Big Yellow Group (LSE:BYG) | 3.72% | ★★★★★☆ |
Dunelm Group (LSE:DNLM) | 6.90% | ★★★★★☆ |
Plus500 (LSE:PLUS) | 5.79% | ★★★★★☆ |
DCC (LSE:DCC) | 3.48% | ★★★★★☆ |
Rio Tinto Group (LSE:RIO) | 6.17% | ★★★★★☆ |
NWF Group (AIM:NWF) | 4.66% | ★★★★★☆ |
Grafton Group (LSE:GFTU) | 3.52% | ★★★★★☆ |
Hargreaves Services (AIM:HSP) | 6.32% | ★★★★★☆ |
Click here to see the full list of 54 stocks from our Top UK Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Brooks Macdonald Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Brooks Macdonald Group plc offers investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees primarily in the UK, Isle of Man, and Channel Islands, with a market capitalization of approximately £320.93 million.
Operations: Brooks Macdonald Group plc generates £19.62 million in revenue from its international operations.
Dividend Yield: 3.8%
Brooks Macdonald Group's dividend sustainability is questionable with a high payout ratio of 162.6%, indicating dividends are not well covered by earnings, despite a low cash payout ratio of 34.2% suggesting better coverage by cash flows. Dividends have been stable and reliable over the past decade, but recent profit margins have declined to 5.1% from last year's 17.9%. The dividend yield stands at 3.78%, lower than the top UK dividend payers' average of 5.49%. Recent executive changes include Andrea Montague's appointment as CEO starting October 2024, following Andrew Shepherd’s retirement.
Hargreaves Services
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Hargreaves Services Plc operates in environmental and industrial services across the United Kingdom, Southeast Asia, and South Africa, with a market capitalization of approximately £187 million.
Operations: Hargreaves Services Plc generates revenue primarily through its Services segment, which contributed £205.29 million, and a smaller portion from Hargreaves Land at £2.58 million.