Top UK Dividend Stocks To Consider In February 2025

As the FTSE 100 and FTSE 250 indices face downward pressure due to weak trade data from China, concerns about global economic recovery continue to influence investor sentiment in the UK market. In such uncertain times, dividend stocks can offer a measure of stability and income potential, making them an attractive consideration for investors looking to navigate these challenging conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Keller Group (LSE:KLR)	3.52%	★★★★★☆
Dunelm Group (LSE:DNLM)	8.07%	★★★★★☆
OSB Group (LSE:OSB)	7.68%	★★★★★☆
Man Group (LSE:EMG)	6.02%	★★★★★☆
Pets at Home Group (LSE:PETS)	5.66%	★★★★★☆
DCC (LSE:DCC)	3.75%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.76%	★★★★★☆
Grafton Group (LSE:GFTU)	4.01%	★★★★★☆
James Latham (AIM:LTHM)	7.08%	★★★★★☆
RS Group (LSE:RS1)	3.41%	★★★★★☆

Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Somero Enterprises (AIM:SOM)

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

Overview: Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment in the United States and internationally with a market cap of £150.45 million.

Operations: Somero Enterprises, Inc. generates revenue of $113.69 million from its construction machinery and equipment segment.

Dividend Yield: 8.4%

Somero Enterprises offers a high dividend yield of 8.4%, placing it in the top 25% of UK dividend payers. However, its dividends have been unreliable and volatile over the past decade, with payouts not fully covered by cash flows due to a high cash payout ratio of 97.4%. Despite this, earnings cover the dividends well with a payout ratio of 49.6%. Recent leadership changes could impact future stability and strategy execution.

• Click here to discover the nuances of Somero Enterprises with our detailed analytical dividend report.
• Our expertly prepared valuation report Somero Enterprises implies its share price may be lower than expected.

Anglo-Eastern Plantations (LSE:AEP)

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

Overview: Anglo-Eastern Plantations Plc, along with its subsidiaries, owns, operates, and develops agricultural plantations in Indonesia and Malaysia with a market cap of £266.94 million.

Operations: Anglo-Eastern Plantations generates revenue of $364.23 million from its cultivation of plantation activities in Indonesia and Malaysia.

Dividend Yield: 3.6%

Anglo-Eastern Plantations' dividend payments have grown over the past decade but remain volatile and unreliable. The dividend yield of 3.57% is below the top UK payers, yet dividends are well-covered by earnings and cash flows, with payout ratios of 10.7% and 24.4%, respectively. Trading significantly below estimated fair value, it presents a potential value opportunity despite an unstable track record. Recent leadership changes may influence future strategic directions.

• Navigate through the intricacies of Anglo-Eastern Plantations with our comprehensive dividend report here.
• According our valuation report, there's an indication that Anglo-Eastern Plantations' share price might be on the cheaper side.

DCC (LSE:DCC)

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

Overview: DCC plc is involved in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of approximately £5.26 billion.

Operations: DCC plc generates revenue from three main segments: DCC Energy (£13.91 billion), DCC Healthcare (£853.99 million), and DCC Technology (£4.80 billion).

Dividend Yield: 3.8%

DCC offers a reliable dividend yield of 3.75%, below the top UK payers, yet well-covered by earnings and cash flows with payout ratios of 59.9% and 49.5%, respectively. Dividends have grown steadily over the past decade, supported by strategic moves such as focusing on energy sector expansion and divesting non-core businesses like healthcare. Recent acquisitions aim to enhance growth, while trading at a discount to fair value suggests potential upside for investors seeking stable dividends amidst strategic shifts.

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

Key Takeaways

• Explore the 57 names from our Top UK Dividend Stocks screener here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

• 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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