Top UK Dividend Stocks For June 2025

The United Kingdom's FTSE 100 has recently experienced a downturn, influenced by weak trade data from China and its impact on globally interconnected companies, particularly in the commodities sector. In this challenging environment, dividend stocks can offer investors a measure of stability and income potential, as they often represent established companies with resilient business models that may weather economic fluctuations.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Macfarlane Group (LSE:MACF)

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

Overview: Macfarlane Group PLC, with a market cap of £191.13 million, designs, manufactures, and distributes protective packaging products to businesses in the United Kingdom and Europe through its subsidiaries.

Operations: Macfarlane Group PLC generates revenue through its Packaging Distribution segment, which accounts for £228.76 million, and its Manufacturing Operations segment, contributing £47.46 million.

Dividend Yield: 3%

Macfarlane Group's dividend payments have been volatile over the past decade, with periods of significant drops. Despite this, dividends are well-covered by earnings and cash flows, as indicated by a payout ratio of 37.5% and a cash payout ratio of 25.9%. The stock trades at a discount to its estimated fair value, though its dividend yield is lower than the top UK payers. Earnings growth has been modest but consistent recently.

• Delve into the full analysis dividend report here for a deeper understanding of Macfarlane Group.
• In light of our recent valuation report, it seems possible that Macfarlane Group is trading behind its estimated value.

Morgan Advanced Materials (LSE:MGAM)

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

Overview: Morgan Advanced Materials plc manufactures and sells various carbon and ceramic products, with a market cap of £613.76 million.

Operations: Morgan Advanced Materials plc generates revenue from its Thermal Products segment (£419.90 million), Performance Carbon segment (£345.70 million), and the Carbon & Technical Ceramics Division - Technical Ceramics segment (£337.80 million).

Dividend Yield: 5.6%

Morgan Advanced Materials' dividend yield of 5.56% ranks in the top UK payers but is not well-supported by cash flows, with a high cash payout ratio of 198.3%. Despite earnings covering dividends with a payout ratio of 69.1%, past payments have been volatile and unreliable, showing significant annual drops. The company trades at good value relative to peers and industry, though it carries a high debt level that could impact future dividend sustainability.

• Unlock comprehensive insights into our analysis of Morgan Advanced Materials stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Morgan Advanced Materials is priced lower than what may be justified by its financials.

Rathbones Group (LSE:RAT)

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

Overview: Rathbones Group Plc, with a market cap of £1.74 billion, offers wealth and asset management services in the United Kingdom and Channel Islands through its subsidiaries.

Operations: Rathbones Group Plc generates revenue through its Asset Management segment, contributing £81.70 million, and its Wealth Management segment, which accounts for £814.20 million.

Dividend Yield: 5.6%

Rathbones Group's recent approval of a 63 pence per share dividend highlights its attractive yield, ranking in the top UK payers. However, dividend stability is questionable due to past volatility and a high payout ratio of 147.3%, indicating dividends are not well covered by earnings despite a low cash payout ratio. Recent executive changes, including the upcoming CEO transition, may influence future strategic direction and potentially impact dividend reliability amidst ongoing integration with Investec Wealth & Investment (UK).

• Click here to discover the nuances of Rathbones Group with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, Rathbones Group's share price might be too pessimistic.

Summing It All Up

• Discover the full array of 55 Top UK Dividend Stocks right here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Seeking Other Investments?

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• 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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