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As the FTSE 100 faces challenges due to weak trade data from China, investors in the UK market are navigating a landscape marked by global economic uncertainties and fluctuating commodity prices. In such an environment, dividend stocks can offer a measure of stability and income potential, making them an attractive option for those seeking to weather market volatility while benefiting from regular payouts.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Pets at Home Group (LSE:PETS) | 6.22% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.50% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.29% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.38% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 7.62% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.18% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.98% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.03% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.84% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.75% | ★★★★★☆ |
Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Paragon Banking Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Paragon Banking Group PLC offers financial products and services in the United Kingdom with a market cap of £1.46 billion.
Operations: Paragon Banking Group PLC generates revenue through its Mortgage Lending segment, which accounts for £280.50 million, and its Commercial Lending segment, contributing £115.20 million.
Dividend Yield: 5.6%
Paragon Banking Group has proposed a final dividend increase to 27.2 pence per share, bringing the total annual dividend to 40.4 pence, reflecting growth from the previous year. Despite past volatility in dividends, current payouts are well covered by earnings and cash flows with payout ratios of 45.6% and 3.7%, respectively. Recent earnings show significant improvement with net income rising to £186 million from £153.9 million last year, supporting its dividend sustainability efforts amidst an ongoing share buyback program totaling £42.5 million.
Plus500
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Plus500 Ltd. is a fintech company that operates technology-based trading platforms across Europe, the United Kingdom, Australia, and internationally, with a market cap of £2.03 billion.
Operations: The company's revenue primarily comes from CFD Trading, which generated $750.80 million.
Dividend Yield: 5.8%
Plus500's dividend payments are well-covered by earnings and cash flows, with payout ratios of 24.9% and 36.7%, respectively, indicating sustainability. However, its dividend yield of 5.8% is slightly below the top quartile in the UK market. While dividends have grown over the past decade, they have been volatile and unreliable at times. Currently trading at a significant discount to its estimated fair value, Plus500 shows good relative value compared to peers in the industry.