Top UK Dividend Stocks To Consider In August 2025

As the UK market grapples with the ripple effects of weak trade data from China, leading to declines in major indices like the FTSE 100 and FTSE 250, investors are increasingly seeking stability amidst global economic uncertainties. In such a climate, dividend stocks can offer a reliable income stream and potential for long-term growth, making them an attractive option for those looking to navigate these turbulent times.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Card Factory (LSE:CARD)

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

Overview: Card Factory plc is a specialist retailer of cards, gifts, and celebration essentials with operations in the United Kingdom, South Africa, Republic of Ireland, the United States, and internationally; it has a market cap of £355.37 million.

Operations: Card Factory plc generates revenue primarily through its Cardfactory Stores segment (£506.80 million), supplemented by its Partnerships (£22.20 million) and Cardfactory Online, including Getting Personal (£13.20 million).

Dividend Yield: 4.7%

Card Factory trades at 52% below its estimated fair value, presenting a good relative value compared to peers. Although its 4.74% dividend yield is lower than the top UK payers, dividends are well-covered by earnings and cash flows with payout ratios of 34.8% and 23.9%, respectively. However, the dividend history is unstable and unreliable due to past volatility despite recent increases over the past decade. The company maintains guidance for mid-to-high single-digit sales growth in fiscal year 2026.

• Navigate through the intricacies of Card Factory with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Card Factory is priced lower than what may be justified by its financials.

Paragon Banking Group (LSE:PAG)

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

Overview: Paragon Banking Group PLC offers financial products and services in the United Kingdom with a market cap of £1.78 billion.

Operations: Paragon Banking Group PLC generates revenue through its Mortgage Lending segment, which accounts for £278.30 million, and its Commercial Lending segment, contributing £106.80 million.

Dividend Yield: 4.4%

Paragon Banking Group offers a dividend yield of 4.38%, below the top UK payers, yet dividends are well-covered by earnings and cash flows with payout ratios of 40.6% and 17.7%. Despite past volatility, dividends have grown over the last decade. Recent announcements include a GBP 0.136 interim dividend and a share repurchase program for up to 9.98% of issued capital, indicating strong financial health and commitment to returning value to shareholders.

• Click here and access our complete dividend analysis report to understand the dynamics of Paragon Banking Group.
• The valuation report we've compiled suggests that Paragon Banking Group's current price could be quite moderate.

J Sainsbury (LSE:SBRY)

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

Overview: J Sainsbury plc, along with its subsidiaries, operates in the United Kingdom providing food, general merchandise and clothing retailing as well as financial services, with a market capitalization of approximately £6.70 billion.

Operations: J Sainsbury plc generates revenue through its Retail segment, which accounts for £32.63 billion, and its Financial Services segment, contributing £182 million.

Dividend Yield: 4.6%

J Sainsbury's recent approval of a 9.7 pence final dividend highlights its ongoing commitment to shareholders, though its dividend yield of 4.58% lags behind top UK payers. While past dividends have been volatile, current payments are well-covered by earnings and cash flows, with payout ratios at 75.5% and 27.4%, respectively. Recent board changes and stable earnings guidance underscore the company's focus on strategic growth amidst evolving market conditions.

• Click here to discover the nuances of J Sainsbury with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential undervaluation of J Sainsbury shares in the market.

Seize The Opportunity

• Unlock more gems! Our Top UK Dividend Stocks screener has unearthed 53 more companies for you to explore.Click here to unveil our expertly curated list of 56 Top UK Dividend Stocks.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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