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UK Dividend Stocks Featuring City of London Investment Group And 2 More

In This Article:

The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing a dip due to weak trade data from China, highlighting the interconnectedness of global economies. In such volatile times, dividend stocks can offer a measure of stability and income for investors, making them an attractive option amidst fluctuating market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Keller Group (LSE:KLR)

3.54%

★★★★★☆

Dunelm Group (LSE:DNLM)

8.01%

★★★★★☆

OSB Group (LSE:OSB)

7.58%

★★★★★☆

Man Group (LSE:EMG)

5.87%

★★★★★☆

Epwin Group (AIM:EPWN)

5.76%

★★★★★☆

DCC (LSE:DCC)

3.72%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.78%

★★★★★☆

NWF Group (AIM:NWF)

4.76%

★★★★★☆

Grafton Group (LSE:GFTU)

4.27%

★★★★★☆

James Latham (AIM:LTHM)

7.21%

★★★★★☆

Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.

We'll examine a selection from our screener results.

City of London Investment Group

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

Overview: City of London Investment Group PLC is a publicly owned investment manager with a market cap of £175.86 million.

Operations: City of London Investment Group PLC generates its revenue through investment management services.

Dividend Yield: 8.8%

City of London Investment Group offers a compelling dividend yield at 8.79%, ranking in the UK's top quartile, though its dividend history is volatile, with payments sometimes unstable over the past decade. Despite this, recent earnings growth and a payout ratio of 74.5% suggest dividends are currently sustainable. The company trades below its estimated fair value and has affirmed an interim dividend of £0.11 per share, maintaining last year's level despite profit increases to US$9.29 million for H1 2024-2025.

LSE:CLIG Dividend History as at Feb 2025
LSE:CLIG Dividend History as at Feb 2025

Greggs

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

Overview: Greggs plc is a UK-based food-on-the-go retailer with a market cap of £2.12 billion.

Operations: Greggs plc generates revenue from two main segments: Business to Business (B2B) at £219.90 million and Retail Company Managed Shops at £1.71 billion.

Dividend Yield: 3.1%

Greggs trades at a 19.1% discount to its estimated fair value, offering potential value for investors. Its dividend payout is sustainable, with a payout ratio of 48% and cash coverage at 44.3%, though the yield of 3.12% is below top-tier UK payers. Despite volatile dividends over the past decade, payments have grown in the long term, supported by recent earnings growth of 2.1%.