In This Article:
Recent trends in the UK market, particularly the FTSE 100's downturn influenced by weak trade data from China, highlight a challenging global economic environment. In such times, identifying resilient dividend stocks becomes crucial for investors seeking stable returns amidst volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.81% | ★★★★★★ |
| Impax Asset Management Group (AIM:IPX) | 6.82% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.75% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.05% | ★★★★★☆ |
| Rio Tinto Group (LSE:RIO) | 6.65% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.81% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.46% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 6.43% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.50% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.53% | ★★★★★☆ |
Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
City of London Investment Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: City of London Investment Group PLC is a publicly owned investment manager with a market capitalization of approximately £186.76 million.
Operations: City of London Investment Group PLC generates its revenue primarily from asset management, contributing $73.72 million.
Dividend Yield: 8.3%
City of London Investment Group offers a high dividend yield at 8.27%, ranking in the top 25% in the UK market. However, its dividend sustainability is questionable with a payout ratio of 112.5% and dividends not well covered by earnings or free cash flow (89.6%). Despite trading below fair value, CLIG's dividends have shown volatility and unreliability over the past decade, although there has been an increase in dividend payments during this period.
OSB Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: OSB Group Plc is a UK-based company specializing in mortgage lending and retail savings, with a market capitalization of approximately £1.90 billion.
Operations: OSB Group Plc generates its revenue primarily through its subsidiaries, Onesavings Bank Plc and Charter Court Financial Services Group Plc, which contributed £429.10 million and £230.20 million respectively.
Dividend Yield: 6.6%
OSB Group's dividend sustainability is currently supported by a 48.4% payout ratio, though this is expected to decrease to 34.6% in three years, indicating potential future coverage challenges. The company has a history of volatile dividends over its less than 10-year dividend payment history and an unreliable track record over the past nine years. Additionally, OSB faces issues with a high bad loans ratio at 3%, hinting at financial instability that could impact future payouts.