Top UK Dividend Stocks To Consider In February 2025

The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China, which highlights the challenges faced by economies heavily reliant on global trade. In such uncertain market conditions, dividend stocks can offer investors a measure of stability and income, making them an attractive option for those seeking to navigate the current economic landscape.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Keller Group (LSE:KLR)	3.55%	★★★★★☆
Dunelm Group (LSE:DNLM)	8.01%	★★★★★☆
OSB Group (LSE:OSB)	7.67%	★★★★★☆
4imprint Group (LSE:FOUR)	3.05%	★★★★★☆
Man Group (LSE:EMG)	5.97%	★★★★★☆
Epwin Group (AIM:EPWN)	5.76%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.75%	★★★★★☆
NWF Group (AIM:NWF)	4.74%	★★★★★☆
Grafton Group (LSE:GFTU)	4.33%	★★★★★☆
James Latham (AIM:LTHM)	7.21%	★★★★★☆

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.

Next 15 Group (AIM:NFG)

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

Overview: Next 15 Group plc, with a market cap of £313.78 million, operates as a communications services provider across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.

Operations: Next 15 Group plc generates revenue through its communications services offered across various regions including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.

Dividend Yield: 4.9%

Next 15 Group's dividend payments, while covered by earnings and cash flows with payout ratios of 25.2% and 23.3% respectively, have been volatile over the past decade. Despite trading at a significant discount to estimated fair value and offering a dividend yield of 4.87%, its high debt levels and forecasted earnings decline raise concerns about sustainability. Recent profit growth by £132 million may not offset these risks for dividend stability in the future.

• Delve into the full analysis dividend report here for a deeper understanding of Next 15 Group.
• According our valuation report, there's an indication that Next 15 Group's share price might be on the cheaper side.

Vertu Motors (AIM:VTU)

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

Overview: Vertu Motors plc is an automotive retailer in the United Kingdom with a market cap of £170.58 million.

Operations: Vertu Motors plc generates revenue primarily from its Retail - Gasoline & Auto Dealers segment, which accounts for £4.79 billion.

Dividend Yield: 4.6%

Vertu Motors' dividend payments, though covered by earnings and cash flows with payout ratios of 41.8% and 17.4% respectively, have been volatile over the past decade. The recent £12 million share buyback program could enhance shareholder value but may not address concerns about its unstable dividend history. With a price-to-earnings ratio of 8.9x, it trades below the UK market average, yet its dividend yield of 4.57% lags behind top-tier payers in the region.

• Unlock comprehensive insights into our analysis of Vertu Motors stock in this dividend report.
• The valuation report we've compiled suggests that Vertu Motors' current price could be inflated.

Eurocell (LSE:ECEL)

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

Overview: Eurocell plc is involved in the manufacture, distribution, and recycling of PVC building products such as windows, doors, and roofline items across the United Kingdom and the Republic of Ireland, with a market cap of £142.13 million.

Operations: Eurocell plc's revenue is derived from its Profiles segment, contributing £210.70 million, and its Building Plastics segment, which adds £208.20 million.

Dividend Yield: 4.1%

Eurocell's dividend payments are covered by earnings and cash flows, with payout ratios of 50.5% and 13.2% respectively, yet they have been unreliable over the past decade. Despite trading at a good value compared to peers, its dividend yield of 4.07% is below top-tier UK payers. Recent executive changes include Stuart Livingstone as COO, while group sales for 2024 were £358 million, a slight decline from the previous year.

• Dive into the specifics of Eurocell here with our thorough dividend report.
• The analysis detailed in our Eurocell valuation report hints at an deflated share price compared to its estimated value.

Taking Advantage

• Gain an insight into the universe of 60 Top UK Dividend Stocks by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready For A Different Approach?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com