In This Article:
In the wake of recent market fluctuations, the FTSE 100 has seen a downturn influenced by weak trade data from China, highlighting the interconnected nature of global economies. As investors navigate these challenging conditions, dividend stocks can offer a degree of stability and income potential, making them an attractive option for those seeking to bolster their portfolios amidst uncertainty.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.46% | ★★★★★★ |
| Man Group (LSE:EMG) | 6.36% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.55% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 8.19% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.52% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.13% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.93% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.71% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.44% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.66% | ★★★★★☆ |
Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.
We're going to check out a few of the best picks from our screener tool.
James Halstead
Simply Wall St Dividend Rating: ★★★★★☆
Overview: James Halstead plc, with a market cap of £627.26 million, manufactures and supplies flooring products for commercial and domestic uses across the United Kingdom, Europe, Scandinavia, Australasia, Asia, and other international markets.
Operations: The company's revenue primarily stems from the manufacture and distribution of flooring products, amounting to £274.88 million.
Dividend Yield: 5.6%
James Halstead offers a reliable dividend yield of 5.65%, though slightly below the top quartile in the UK market. The company has consistently increased its dividends over the past decade, supported by stable earnings and cash flows with payout ratios of 85.3% and 77%, respectively. Trading at 15% below estimated fair value, it presents an attractive opportunity for value investors. Recent board changes include Anthony Wild stepping down as Chairman after the AGM in December 2024.
Drax Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Drax Group plc, with a market cap of £2.13 billion, operates in the United Kingdom focusing on renewable power generation through its subsidiaries.
Operations: Drax Group's revenue segments include Energy Solutions (£3.79 billion), Pellet Production (£942.10 million), Biomass Generation (£4.92 billion), and Flexible Generation (£222.80 million).
Dividend Yield: 4.4%
Drax Group's dividends are well-covered by earnings and cash flows, with payout ratios of 18.9% and 20.1%, respectively, despite a history of volatility. The company recently proposed a final dividend for 2024, marking a 12.6% increase from the previous year, totaling £97 million for the year. However, its dividend yield of 4.44% remains below the UK market's top quartile. Drax completed a share buyback worth £150 million in early 2025.