3 Top UK Dividend Stocks To Consider

The United Kingdom's FTSE 100 index recently faced a downturn, influenced by weak trade data from China, highlighting the interconnectedness of global economies and their impact on UK markets. In such fluctuating conditions, dividend stocks can offer investors a measure of stability and potential income, making them an appealing option for those navigating today's unpredictable market landscape.

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.

Let's uncover some gems from our specialized screener.

Arbuthnot Banking Group (AIM:ARBB)

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

Overview: Arbuthnot Banking Group PLC, with a market cap of £167.75 million, offers private and commercial banking products and services in the United Kingdom through its subsidiaries.

Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (£15.21 million), Asset Alliance Group (AAG) (£15.40 million), Renaissance Asset Finance (RAF) (£14.09 million), and Arbuthnot Commercial Asset Based Lending (ACABL) (£20.31 million).

Dividend Yield: 4.8%

Arbuthnot Banking Group's dividend payments have been volatile over the past decade, despite recent increases, such as a proposed interim dividend of 22p per share. The payout ratio is reasonable at 50.9%, suggesting dividends are covered by earnings and forecast to remain so in three years. However, the bank faces challenges with a high bad loan ratio of 3.7% and declining profit margins, impacting its overall financial stability for consistent dividends.

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

Grafton Group (LSE:GFTU)

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

Overview: Grafton Group plc is a distributor and seller of building materials and construction-related products in Ireland, the United Kingdom, the Netherlands, Finland, and Spain with a market cap of £1.71 billion.

Operations: Grafton Group's revenue is derived from several segments, including UK Distribution (£780.78 million), Ireland Distribution (£632.81 million), Netherlands Distribution (£337.58 million), Retailing (£261.06 million), Finland Distribution (£131.76 million), Manufacturing (£122.16 million), and Spain Distribution (£29.66 million).

Dividend Yield: 4.2%

Grafton Group's dividend is well-covered by earnings and cash flows, with a payout ratio of 60.8% and a cash payout ratio of 35.9%. The company has maintained stable and growing dividends over the past decade, although its yield of 4.19% is below the top tier in the UK market. Recent sales results show revenue growth to £1.25 billion for H1 2025, supporting dividend sustainability alongside strategic share buybacks worth £30 million completed recently.

• Click to explore a detailed breakdown of our findings in Grafton Group's dividend report.
• Our comprehensive valuation report raises the possibility that Grafton Group is priced lower than what may be justified by its financials.

RS Group (LSE:RS1)

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

Overview: RS Group plc, with a market cap of £2.57 billion, distributes maintenance, repair, and operations products and service solutions across the UK, US, France, Mexico, Germany, Italy, Switzerland, and other international markets.

Operations: RS Group plc generates revenue from its Own-Brand Product and Service Solutions, amounting to £400.40 million.

Dividend Yield: 4.1%

RS Group's dividend strategy is supported by a payout ratio of 69% and a cash payout ratio of 50%, indicating coverage by earnings and cash flows. The company's dividends have been stable and increasing over the past decade, though its yield of 4.08% lags behind top-tier UK dividend payers. Despite unchanged earnings guidance for 2025-26, RS Group faces a £9 million revenue impact due to fewer trading days, which may influence future dividend considerations.

• Get an in-depth perspective on RS Group's performance by reading our dividend report here.
• Our valuation report unveils the possibility RS Group's shares may be trading at a discount.

Taking Advantage

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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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