In This Article:
Amidst the recent downturn in the FTSE 100, influenced by weak trade data from China and its subsequent impact on global markets, investors are seeking stability through reliable income sources. In such uncertain times, dividend stocks like Big Yellow Group offer a compelling option for those looking to secure steady returns while navigating market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Keller Group (LSE:KLR) | 3.55% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 7.77% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.72% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.81% | ★★★★★☆ |
| Epwin Group (AIM:EPWN) | 5.80% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.72% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.77% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.62% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.26% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.21% | ★★★★★☆ |
Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.
Let's dive into some prime choices out of the screener.
Big Yellow Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Big Yellow Group is the UK's leading brand in self-storage, with a market cap of £1.85 billion.
Operations: Big Yellow Group generates revenue primarily from the provision of self-storage and related services, amounting to £203.01 million.
Dividend Yield: 4.8%
Big Yellow Group offers a stable dividend history with a yield of 4.77%, though it trails the top UK dividend payers. The dividends are well-covered by earnings and cash flows, with payout ratios of 76.8% and 77.5%, respectively, indicating sustainability. Its price-to-earnings ratio (7x) suggests good value relative to the UK market average (16.2x). However, future earnings are expected to decline by an average of 2.8% annually over three years, which may impact long-term growth prospects.
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Take a closer look at Big Yellow Group's potential here in our dividend report.
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Our valuation report here indicates Big Yellow Group may be undervalued.
Dunelm Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Dunelm Group plc operates as a retailer of homewares in the United Kingdom, with a market cap of £2.05 billion.
Operations: Dunelm Group plc generates revenue of £1.73 billion from its homewares retail segment in the United Kingdom.
Dividend Yield: 7.8%
Dunelm Group's dividend yield of 7.77% places it among the top UK dividend payers, supported by a solid earnings payout ratio of 58.6% and cash flow coverage at 52.9%. Despite a volatile dividend history, recent announcements include an interim and special dividend totaling £104.2 million, reflecting strong cash generation. The company's price-to-earnings ratio of 13.4x indicates good value compared to the broader UK market, though executive changes may introduce uncertainty in leadership continuity.