UK Dividend Stocks To Consider In February 2025

The UK market has recently faced challenges, with the FTSE 100 and FTSE 250 indices both closing lower due to weak trade data from China, highlighting concerns about global economic recovery. In this environment, dividend stocks can offer a measure of stability and income potential for investors seeking reliable returns amidst fluctuating market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
WPP (LSE:WPP)	6.11%	★★★★★★
Man Group (LSE:EMG)	5.77%	★★★★★☆
4imprint Group (LSE:FOUR)	3.09%	★★★★★☆
Dunelm Group (LSE:DNLM)	8.05%	★★★★★☆
OSB Group (LSE:OSB)	7.43%	★★★★★☆
DCC (LSE:DCC)	3.78%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.85%	★★★★★☆
NWF Group (AIM:NWF)	4.76%	★★★★★☆
Grafton Group (LSE:GFTU)	4.42%	★★★★★☆
James Latham (AIM:LTHM)	7.24%	★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Epwin Group (AIM:EPWN)

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

Overview: Epwin Group Plc manufactures and sells building products in the United Kingdom, Europe, and internationally with a market cap of £118.03 million.

Operations: Epwin Group Plc generates revenue through its Extrusion and Moulding segment, which accounts for £233.30 million, and its Fabrication and Distribution segment, contributing £130.40 million.

Dividend Yield: 5.7%

Epwin Group's dividend payments are well covered by both earnings, with a payout ratio of 77.5%, and cash flows, with a cash payout ratio of 27%. However, the dividends have been unreliable and volatile over the past decade. Although trading slightly below fair value and having increased dividends over ten years, its current yield is marginally lower than top UK dividend payers. Recent earnings growth of 11% supports its dividend sustainability.

• Take a closer look at Epwin Group's potential here in our dividend report.
• Upon reviewing our latest valuation report, Epwin Group's share price might be too pessimistic.

London Security (AIM:LSC)

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

Overview: London Security plc is an investment holding company that manufactures, sells, and rents fire protection equipment across several European countries, with a market cap of £441.36 million.

Operations: London Security plc generates revenue of £221.72 million from the provision and maintenance of fire protection and security equipment across its operational regions.

Dividend Yield: 3.4%

London Security's dividends are supported by earnings and cash flows, with payout ratios of 65.3% and 66.2%, respectively. Despite this coverage, the dividend yield of 3.39% is below the top UK dividend payers' average of 5.71%. Over the past decade, dividends have been volatile and unreliable despite some growth in payments. The stock trades significantly below its estimated fair value, suggesting potential undervaluation amid recent earnings growth of 5.2%.

• Dive into the specifics of London Security here with our thorough dividend report.
• Our valuation report unveils the possibility London Security's shares may be trading at a discount.

Conduit Holdings (LSE:CRE)

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

Overview: Conduit Holdings Limited, along with its subsidiaries, offers reinsurance products and services globally and has a market capitalization of £613.78 million.

Operations: Conduit Holdings Limited generates revenue through its reinsurance operations, with $174.60 million from Casualty, $320 million from Property, and $124.30 million from Specialty segments.

Dividend Yield: 7.3%

Conduit Holdings' dividend yield of 7.29% places it among the top UK payers, though its four-year history shows volatility and no growth in payments. The payout ratios are low, with earnings coverage at 27.2% and cash flow coverage at 15.9%, suggesting sustainability despite recent decreases in dividends to $0.18 per share for 2024. Trading at a significant discount to estimated fair value, the stock may offer relative value despite insider selling concerns.

• Navigate through the intricacies of Conduit Holdings with our comprehensive dividend report here.
• In light of our recent valuation report, it seems possible that Conduit Holdings is trading behind its estimated value.

Where To Now?

• Explore the 60 names from our Top UK Dividend Stocks screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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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