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As the FTSE 100 index experiences fluctuations due to global economic challenges, particularly from China's sluggish recovery, investors in the UK are seeking stability amidst market volatility. In such an environment, dividend stocks can offer a reliable income stream by providing consistent payouts, making them an attractive option for those looking to balance risk with steady returns.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Pets at Home Group (LSE:PETS) | 6.08% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.57% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 8.36% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.33% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.08% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.67% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.68% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.04% | ★★★★★☆ |
| RS Group (LSE:RS1) | 3.30% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.81% | ★★★★★☆ |
Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Next 15 Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Next 15 Group plc, along with its subsidiaries, offers communications services across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific with a market cap of £343.12 million.
Operations: Next 15 Group plc generates its revenue through providing a range of communications services across multiple regions, including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.
Dividend Yield: 4.1%
Next 15 Group's dividend payments are well covered by both earnings and cash flows, with payout ratios of 25.2% and 23.3%, respectively. However, the company has an unstable dividend track record over the past decade, marked by volatility in payments despite some growth. While trading at a significant discount to fair value estimates and showing good relative value compared to peers, high debt levels and forecasted earnings decline pose concerns for future dividend sustainability.
Vertu Motors
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Vertu Motors plc is an automotive retailer operating in the United Kingdom with a market capitalization of £181.39 million.
Operations: Vertu Motors plc generates revenue primarily from its Retail - Gasoline & Auto Dealers segment, amounting to £4.79 billion.
Dividend Yield: 4.4%
Vertu Motors' dividends are well-supported by earnings and cash flows, with payout ratios of 41.8% and 17.4%, respectively, despite an unstable dividend history marked by volatility over the past decade. The stock trades at a discount to its estimated fair value but has seen significant insider selling recently. Profit margins have declined slightly from last year, yet revenue is expected to grow annually by 5.66%. Amanda Jane Cox's recent board appointment may bring strategic insights from her extensive retail experience.