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Top UK Dividend Stocks To Consider In February 2025

In This Article:

As the United Kingdom's FTSE 100 index grapples with challenges stemming from weak trade data from China, investors are closely monitoring how these global economic shifts impact domestic markets. In such uncertain times, dividend stocks can offer a degree of stability and income potential, making them an attractive consideration for those looking to navigate the current market volatility.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Keller Group (LSE:KLR)

3.49%

★★★★★☆

Dunelm Group (LSE:DNLM)

8.08%

★★★★★☆

OSB Group (LSE:OSB)

7.68%

★★★★★☆

Man Group (LSE:EMG)

5.95%

★★★★★☆

DCC (LSE:DCC)

3.77%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.76%

★★★★★☆

NWF Group (AIM:NWF)

4.94%

★★★★★☆

James Latham (AIM:LTHM)

7.08%

★★★★★☆

Grafton Group (LSE:GFTU)

3.94%

★★★★★☆

RS Group (LSE:RS1)

3.48%

★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

NWF Group

Simply Wall St Dividend Rating: ★★★★★☆

Overview: NWF Group plc, with a market cap of £81.10 million, primarily operates in the United Kingdom through the sale and distribution of fuel oils.

Operations: NWF Group plc generates revenue through its three main segments: Food (£82.30 million), Feeds (£204.10 million), and Fuels (£653.10 million).

Dividend Yield: 4.9%

NWF Group offers a stable and reliable dividend, maintaining consistent payments over the past decade. Despite recent earnings declines—sales at £454.3 million and net income at £1.6 million—the interim dividend remains unchanged at 1.0 pence per share, reflecting a sustainable payout ratio of 50.1% from earnings and 32.3% from cash flows. Although its yield of 4.94% is below the UK top quartile, it trades attractively below estimated fair value by 40.5%.

AIM:NWF Dividend History as at Feb 2025
AIM:NWF Dividend History as at Feb 2025

Man Group

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Man Group Limited is a publicly owned investment manager with a market cap of £2.44 billion.

Operations: Man Group Limited generates revenue of $1.40 billion from its Investment Management Business segment.

Dividend Yield: 5.9%

Man Group's dividend payments have been volatile over the past decade, yet they remain in the top 25% of UK dividend payers. The company's dividends are well-covered by earnings and cash flows, with a payout ratio of 60.3% and a cash payout ratio of 46.1%. Trading at 61% below its fair value estimate, Man Group presents good relative value compared to peers. Earnings are projected to grow annually by 12.99%, supporting potential future stability in dividends.