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As the FTSE 100 index experiences fluctuations due to weak trade data from China and global economic pressures, UK investors are closely monitoring the market's response. In such uncertain times, dividend stocks can offer a measure of stability and income potential, making them an attractive consideration for those looking to navigate these challenging conditions.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.60% | ★★★★★★ |
| Man Group (LSE:EMG) | 7.49% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.12% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.18% | ★★★★★☆ |
| Treatt (LSE:TET) | 3.27% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 5.00% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.41% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.00% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.87% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.67% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Begbies Traynor Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Begbies Traynor Group plc offers professional services to businesses, advisors, large corporations, and financial institutions in the UK with a market cap of £152.20 million.
Operations: Begbies Traynor Group plc generates revenue through its Property Advisory segment (£44.96 million) and Business Recovery and Advisory segment (£102.18 million) in the United Kingdom.
Dividend Yield: 4.3%
Begbies Traynor Group's dividend payments, though reliable and growing over the past decade, are not well covered by earnings due to a high payout ratio of 265.4%. However, with a cash payout ratio of 72.7%, dividends are supported by cash flows. Despite trading at a significant discount to estimated fair value, the dividend yield of 4.3% is lower than the top UK payers. Earnings have shown substantial growth recently but include large one-off items affecting quality.
Johnson Matthey
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Johnson Matthey Plc operates in clean air, catalyst and hydrogen technology, and platinum group metals services across various regions including the UK, Europe, North America, and Asia with a market cap of £2.27 billion.
Operations: Johnson Matthey Plc's revenue segments include Clean Air (£4.47 billion), PGM Services (£8.36 billion), Value Businesses (£224 million), Catalyst Technologies (£689 million), and Hydrogen Technologies (£65 million).
Dividend Yield: 5.7%
Johnson Matthey's dividend yield of 5.68% ranks among the top UK payers, yet its sustainability is questionable due to a lack of free cash flows and unreliable past payments. Despite a low payout ratio of 26.6%, earnings are insufficient to cover dividends, with forecasts indicating a decline in profitability by an average of 28.4% annually over three years. The stock trades at a significant discount to fair value but faces challenges from volatile earnings impacted by large one-off items.