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As the FTSE 100 index faces challenges due to weak trade data from China and declining commodity prices, investors are increasingly focused on stability and income generation in their portfolios. In this environment, dividend stocks like Associated British Foods offer potential appeal by providing regular income streams amidst market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Pets at Home Group (LSE:PETS) | 6.23% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.34% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.50% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.26% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.90% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.77% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.95% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.82% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.82% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.84% | ★★★★★☆ |
Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
Associated British Foods
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Associated British Foods plc is a diversified company operating in food, ingredients, and retail sectors globally, with a market cap of £14.96 billion.
Operations: Associated British Foods plc generates its revenue from several segments, including Retail (£9.45 billion), Grocery (£4.24 billion), Sugar (£2.53 billion), Ingredients (£2.13 billion), and Agriculture (£1.65 billion).
Dividend Yield: 4.4%
Associated British Foods offers a mixed outlook for dividend investors. The company recently announced a final dividend of 42.3 pence per share and a special dividend of 27 pence, payable in January 2025. Despite its dividends being well-covered by earnings and cash flows, ABF's historical dividend volatility raises concerns about reliability. Earnings grew significantly over the past year to £1.46 billion, supporting its payout capacity, but insider selling may indicate caution among executives.
Inchcape
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Inchcape plc operates as an automotive distributor and retailer with a market cap of £3.02 billion.
Operations: Inchcape plc generates revenue through its automotive distribution operations, with £3.07 billion from the APAC region, £3.44 billion from the Americas, and £2.75 billion from Europe & Africa.
Dividend Yield: 4.7%
Inchcape's dividend payments are covered by earnings and cash flows, with a payout ratio of 52.5% and a cash payout ratio of 27.2%. However, its dividends have been volatile over the past decade, raising concerns about reliability. Trading at £2.2 billion in Q3 2024 revenue, Inchcape is exploring bolt-on acquisitions to enhance growth. Despite trading well below estimated fair value, its dividend yield remains lower than the UK's top tier payers.