Top UK Dividend Stocks To Consider In January 2025

In recent months, the UK market has faced challenges as the FTSE 100 index experienced declines, influenced by weak trade data from China and a global economic slowdown. Amid these fluctuations, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those seeking to navigate uncertain market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Pets at Home Group (LSE:PETS)	6.38%	★★★★★★
Keller Group (LSE:KLR)	3.54%	★★★★★☆
4imprint Group (LSE:FOUR)	3.57%	★★★★★☆
OSB Group (LSE:OSB)	8.78%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.74%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.95%	★★★★★☆
Man Group (LSE:EMG)	6.20%	★★★★★☆
Plus500 (LSE:PLUS)	5.92%	★★★★★☆
DCC (LSE:DCC)	3.88%	★★★★★☆
James Latham (AIM:LTHM)	6.96%	★★★★★☆

Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Begbies Traynor Group (AIM:BEG)

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

Overview: Begbies Traynor Group plc offers professional services to businesses, advisors, corporations, and financial institutions in the UK with a market cap of £152.06 million.

Operations: Begbies Traynor Group plc generates revenue through its Property Advisory segment (£44.96 million) and Business Recovery and Advisory segment (£102.18 million).

Dividend Yield: 4.3%

Begbies Traynor Group's dividend yield of 4.25% is not well covered by earnings, with a high payout ratio of 265.4%, though cash flows provide some coverage at a 71.8% cash payout ratio. The company has maintained stable and growing dividends over the past decade, but its yield is lower than the top UK dividend payers. Recent earnings show growth, with sales rising to £76.3 million and net income doubling year-over-year to £2.2 million for H1 2025.

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

Pets at Home Group (LSE:PETS)

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

Overview: Pets at Home Group Plc operates as a specialist omnichannel retailer of pet food, pet-related products, and accessories in the United Kingdom with a market cap of £910.58 million.

Operations: Pets at Home Group generates revenue through its Retail segment, which accounts for £1.33 billion, and its Vet Group segment, contributing £161.10 million.

Dividend Yield: 6.4%

Pets at Home Group offers a strong dividend yield of 6.38%, ranking in the top 25% of UK dividend payers, with dividends well-covered by earnings and cash flows due to payout ratios of 67.3% and 35.8%, respectively. The company has consistently increased its dividends over the past decade, supported by reliable earnings growth, as shown by recent half-year sales increasing to £789.1 million and net income rising to £37.6 million from the previous year.

• Take a closer look at Pets at Home Group's potential here in our dividend report.
• The analysis detailed in our Pets at Home Group valuation report hints at an deflated share price compared to its estimated value.

RS Group (LSE:RS1)

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

Overview: RS Group plc operates as a distributor of maintenance, repair, and operations products and service solutions across the UK, US, France, Germany, Italy, Mexico, and internationally with a market cap of £3.19 billion.

Operations: RS Group plc's revenue is derived from Own-Brand Products, contributing £404.70 million, and Other Product and Service Solutions, generating £2.53 billion.

Dividend Yield: 3.3%

RS Group trades at a value 18.3% below its estimated fair value and offers a stable dividend yield of 3.3%, though lower than the UK market's top quartile. Its dividends are reliably covered by earnings (payout ratio: 61.8%) and cash flows (cash payout ratio: 49.2%), with consistent growth over the past decade. Recent product announcements highlight RS's focus on industrial automation, potentially enhancing long-term business prospects despite recent earnings decline to £78.2 million from £92.2 million year-on-year.

• Click here and access our complete dividend analysis report to understand the dynamics of RS Group.
• Insights from our recent valuation report point to the potential undervaluation of RS Group shares in the market.

Where To Now?

• Unlock more gems! Our Top UK Dividend Stocks screener has unearthed 60 more companies for you to explore.Click here to unveil our expertly curated list of 63 Top UK Dividend Stocks.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Searching for a Fresh Perspective?

• 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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