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The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China, which highlights the challenges faced by economies heavily reliant on global trade. In such uncertain market conditions, dividend stocks can offer investors a measure of stability and income, making them an attractive option for those seeking to navigate the current economic landscape.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Keller Group (LSE:KLR) | 3.55% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 8.01% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.67% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.05% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.97% | ★★★★★☆ |
| Epwin Group (AIM:EPWN) | 5.76% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.75% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.74% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.33% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.21% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Next 15 Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Next 15 Group plc, with a market cap of £313.78 million, operates as a communications services provider across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.
Operations: Next 15 Group plc generates revenue through its communications services offered across various regions including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.
Dividend Yield: 4.9%
Next 15 Group's dividend payments, while covered by earnings and cash flows with payout ratios of 25.2% and 23.3% respectively, have been volatile over the past decade. Despite trading at a significant discount to estimated fair value and offering a dividend yield of 4.87%, its high debt levels and forecasted earnings decline raise concerns about sustainability. Recent profit growth by £132 million may not offset these risks for dividend stability in the future.
Vertu Motors
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Vertu Motors plc is an automotive retailer in the United Kingdom with a market cap of £170.58 million.
Operations: Vertu Motors plc generates revenue primarily from its Retail - Gasoline & Auto Dealers segment, which accounts for £4.79 billion.
Dividend Yield: 4.6%
Vertu Motors' dividend payments, though covered by earnings and cash flows with payout ratios of 41.8% and 17.4% respectively, have been volatile over the past decade. The recent £12 million share buyback program could enhance shareholder value but may not address concerns about its unstable dividend history. With a price-to-earnings ratio of 8.9x, it trades below the UK market average, yet its dividend yield of 4.57% lags behind top-tier payers in the region.