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The UK market has recently faced headwinds, with the FTSE 100 index closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Despite these uncertainties, dividend stocks remain an attractive option for investors seeking steady income and potential long-term growth.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.88% | ★★★★★★ |
| OSB Group (LSE:OSB) | 8.20% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.28% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.79% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.77% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.42% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.73% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.98% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.45% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.41% | ★★★★★☆ |
Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
DCC
Simply Wall St Dividend Rating: ★★★★★☆
Overview: DCC plc is involved in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of £5.21 billion.
Operations: DCC plc's revenue segments consist of DCC Energy at £14.22 billion, DCC Healthcare at £859.38 million, and DCC Technology at £4.77 billion.
Dividend Yield: 3.7%
DCC plc offers a reliable dividend yield of 3.73% with stable and growing payouts over the past decade, supported by a reasonable earnings payout ratio of 59.5% and cash flow coverage at 39.5%. Trading at £4.83 billion, it is considered undervalued by analysts, with expectations for a price increase of 34%. Recent board changes include the appointment of Steve Holland as non-executive director, potentially bolstering strategic growth initiatives.
Halfords Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Halfords Group plc, with a market cap of £326.33 million, operates in the United Kingdom offering motoring and cycling products and services through its subsidiaries.
Operations: Halfords Group plc generates revenue from two main segments: Retail (£997.10 million) and Autocentres (£699.40 million).
Dividend Yield: 5.4%
Halfords Group's dividend yield of 5.35% places it in the top 25% of UK dividend payers. Despite a payout ratio of 60%, dividends are well-covered by both earnings and cash flows, with a cash payout ratio of just 14.3%. However, the company has an unstable dividend track record over the past decade. Recent earnings showed sales growth to £1.70 billion, but net income declined to £16.9 million from £28.1 million last year.