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As the UK market grapples with global economic challenges, notably the sluggish recovery in China impacting commodity-linked stocks, investors are increasingly seeking stability amidst volatility. In such uncertain times, dividend stocks can offer a reliable income stream and potential for long-term growth, making them an attractive option for those looking to navigate the current market landscape.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 6.10% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.20% | ★★★★★☆ |
| Impax Asset Management Group (AIM:IPX) | 8.58% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.21% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.48% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.07% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 6.14% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.14% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.95% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.51% | ★★★★★☆ |
Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Arbuthnot Banking Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Arbuthnot Banking Group PLC, with a market cap of £149.82 million, operates in the United Kingdom offering private and commercial banking products and services through its subsidiaries.
Operations: Arbuthnot Banking Group PLC generates revenue through various segments, including Wealth Management (£12.32 million), Asset Alliance Group (£14.81 million), Renaissance Asset Finance (£9.42 million), and Arbuthnot Commercial Asset Based Lending (£16.03 million).
Dividend Yield: 5.1%
Arbuthnot Banking Group offers a dividend yield of 5.07%, which is below the top 25% of UK dividend payers. Its dividends are well covered by earnings, with a current payout ratio of 24.9% and forecasted at 27.9% in three years, indicating sustainability despite an unstable track record over the past decade. The stock trades at a significant discount to its estimated fair value, although it faces challenges with high bad loan levels at 4.2%.
Grafton Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Grafton Group plc operates in the distribution, retailing, and manufacturing sectors across Ireland, the Netherlands, Finland, and the United Kingdom with a market cap of £1.85 billion.
Operations: Grafton Group's revenue is primarily derived from its UK Distribution (£793.17 million), Ireland Distribution (£630.06 million), Netherlands Distribution (£342.09 million), Retailing (£257.64 million), Finland Distribution (£134.42 million), and Manufacturing (£123.80 million) segments.