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As the UK's FTSE 100 index experiences volatility due to weak trade data from China, investors are closely watching how global economic trends impact the market. In such uncertain times, dividend stocks can offer a measure of stability and income potential, making them an attractive option for those looking to navigate through fluctuating market conditions.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.39% | ★★★★★★ |
| Man Group (LSE:EMG) | 6.38% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.64% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 4.89% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.18% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.86% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.95% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.76% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.53% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.63% | ★★★★★☆ |
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 approximately £1.84 billion.
Operations: Dunelm Group plc generates its revenue primarily through the retail of homewares, amounting to £1.73 billion.
Dividend Yield: 8.6%
Dunelm Group's dividend is supported by a solid cash payout ratio of 52.6%, ensuring coverage by free cash flow, with a payout ratio of 58.6% from earnings. Despite its volatile dividend history, recent increases and a special dividend enhance its appeal to income investors. The stock trades below analyst price targets and offers an attractive yield in the top quartile of UK payers. Recent share buybacks may also support future stock value appreciation amidst executive leadership changes.
Games Workshop Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Games Workshop Group PLC designs, manufactures, distributes, and sells fantasy miniature figures and games globally, with a market cap of £4.79 billion.
Operations: Games Workshop Group PLC generates revenue through its Core segment, which accounts for £528.50 million, and its Licensing segment, contributing £49 million.
Dividend Yield: 3.7%
Games Workshop Group's dividend payments have been stable and growing over the past decade, with recent affirmations increasing dividends declared for 2024/25 to £5.20 per share. However, the dividend yield of 3.71% is lower than top-tier UK payers and not well covered by free cash flow, as indicated by a high cash payout ratio of 111.6%. Earnings growth remains robust, but sustainability concerns arise due to a payout ratio of 77.2% from earnings alone.