Top UK Dividend Stocks To Consider In July 2025

As the UK market navigates through a period of uncertainty, with the FTSE 100 index recently faltering due to weak trade data from China, investors are keenly observing how global economic conditions impact domestic equities. In such a volatile environment, dividend stocks can offer a measure of stability and potential income, making them an attractive option for those seeking to balance risk and reward in their portfolios.

Top 10 Dividend Stocks In The United Kingdom

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

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

Clarkson (LSE:CKN)

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

Overview: Clarkson PLC offers integrated shipping services across Europe, the Middle East, Africa, the Americas, Asia-Pacific, and globally with a market cap of £1.07 billion.

Operations: Clarkson PLC's revenue is primarily derived from its Broking segment at £529.30 million, followed by Support at £65 million, Financial at £42.60 million, and Research at £24.50 million.

Dividend Yield: 3.1%

Clarkson's dividend payments are well-covered by earnings and cash flows, with payout ratios of 39.4% and 31.2%, respectively. Despite a history of volatility, dividends have grown over the past decade. However, the current yield of 3.14% is lower than the top UK payers' average of 5.37%. Trading at 49.4% below estimated fair value suggests potential for capital appreciation alongside dividends, though historical unreliability may concern some investors seeking consistent income streams.

• Unlock comprehensive insights into our analysis of Clarkson stock in this dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Clarkson shares in the market.

Mears Group (LSE:MER)

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

Overview: Mears Group plc, with a market cap of £344.17 million, provides outsourced services to both the public and private sectors in the United Kingdom through its subsidiaries.

Operations: Mears Group plc generates revenue through its Management segment, which accounts for £576.70 million, and its Maintenance segment, contributing £555.81 million.

Dividend Yield: 4.1%

Mears Group's dividend payments are well-covered by earnings and cash flows, with payout ratios of 31.8% and 14.2%, respectively, despite a history of volatility over the past decade. The recent approval of a final dividend increase reflects this coverage strength. While its current yield of 4.13% is below top UK payers, Mears offers good value with a P/E ratio of 7.2x and potential for capital appreciation supported by recent contract wins worth £230 million from Milton Keynes City Council.

• Delve into the full analysis dividend report here for a deeper understanding of Mears Group.
• Our valuation report here indicates Mears Group may be undervalued.

Wilmington (LSE:WIL)

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

Overview: Wilmington plc, with a market cap of £294.63 million, offers data, information, training, and education solutions to professional markets in the UK, US, Europe, and internationally through its subsidiaries.

Operations: Wilmington plc's revenue segments include £15.64 million from Legal, £69.85 million from Finance, and £10.39 million from Health, Safety and Environment (HSE).

Dividend Yield: 3.4%

Wilmington's dividend yield of 3.42% is lower than the top UK payers, yet its dividends are supported by a payout ratio of 72.5% and cash flow coverage at 57%. Despite a volatile dividend history, payments have grown over the past decade. Trading significantly below fair value, analysts expect a price rise by 36%. Recent guidance indicates an operating profit increase of 11%, though revenue declined to £101.5 million from £126 million in 2024.

• Click to explore a detailed breakdown of our findings in Wilmington's dividend report.
• The analysis detailed in our Wilmington valuation report hints at an deflated share price compared to its estimated value.

Next Steps

• Reveal the 59 hidden gems among our Top UK Dividend Stocks screener with a single click here.
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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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