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As the FTSE 100 index experiences fluctuations due to global economic pressures, particularly from China's sluggish recovery, investors are increasingly turning their attention to dividend stocks for potential stability and income. In such uncertain times, a strong dividend yield can be an attractive feature of a stock, offering regular income and potentially cushioning against market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Pets at Home Group (LSE:PETS) | 6.14% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.36% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.47% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.27% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.12% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.79% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 7.36% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.95% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.82% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.69% | ★★★★★☆ |
Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.
Let's dive into some prime choices out of the screener.
James Latham
Simply Wall St Dividend Rating: ★★★★★☆
Overview: James Latham plc, with a market cap of £235.54 million, imports and distributes timbers, panels, and decorative surfaces across the United Kingdom, Republic of Ireland, rest of Europe, and internationally.
Operations: James Latham plc generates revenue of £362.22 million from its Timber Importing and Distribution segment.
Dividend Yield: 6.7%
James Latham's dividend yield is in the top 25% of UK payers, supported by a low payout ratio of 33.4%, indicating earnings coverage. However, a high cash payout ratio of 107% raises concerns about sustainability from free cash flows. Recent earnings show a decline with net income at £10.16 million for H1 2024, down from £12.37 million the previous year, potentially impacting future dividend reliability despite stable and growing payouts over the past decade.
M.P. Evans Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: M.P. Evans Group PLC, with a market cap of £499.29 million, operates through its subsidiaries to own and develop oil palm plantations in Indonesia and Malaysia.
Operations: M.P. Evans Group PLC generates its revenue primarily from its plantation operations in Indonesia, amounting to $336.59 million.
Dividend Yield: 4.7%
M.P. Evans Group's dividend payments have been volatile and unreliable over the past decade, despite recent growth. The dividends are well covered by both earnings and cash flows, with payout ratios of 48.9% and 33.3%, respectively, suggesting sustainability from these perspectives. However, significant insider selling in the last quarter raises caution about future prospects. Currently trading below estimated fair value by 70.1%, MPE offers good relative value compared to peers but yields lower than top UK payers at 4.66%.