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In recent times, the UK market has faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China and its impact on commodity-linked companies. As global uncertainties weigh on investor sentiment, dividend stocks can offer a degree of stability and income potential for portfolios.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Pets at Home Group (LSE:PETS) | 6.18% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.35% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.46% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.28% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.08% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.73% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 7.39% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.97% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.80% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.69% | ★★★★★☆ |
Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.
Let's dive into some prime choices out of the screener.
Dunelm Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Dunelm Group plc operates as a retailer of homewares in the United Kingdom with a market capitalization of £2.15 billion.
Operations: Dunelm Group plc generates revenue primarily through its retail operations in homewares, amounting to £1.71 billion.
Dividend Yield: 7.4%
Dunelm Group's dividend yield is among the top 25% in the UK market, supported by earnings and cash flow coverage with payout ratios of 58.2% and 79.6%, respectively. However, its dividend history has been volatile over the past decade, raising concerns about reliability despite recent growth in payments. Recent sales increased to £403 million for a quarter ending September 2023, aided by digital enhancements through Google Cloud collaboration to improve online shopping experiences.
Ninety One Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ninety One Group is an independent global asset manager with a market cap of £1.33 billion.
Operations: Ninety One Group generates revenue primarily through its Investment Management Business, which reported £584.50 million.
Dividend Yield: 8.3%
Ninety One Group's dividend yield is in the top 25% of UK payers, supported by earnings and cash flow coverage with payout ratios of 67.9% and 58.2%, respectively. Despite a recent interim dividend decrease to 5.4 pence per share, dividends have shown growth over four years with stability but lack a long history. Recent earnings showed a slight decline in revenue to £290.3 million, impacting net income at £68.8 million for the half year ended September 2024.