As the UK market grapples with challenges stemming from weak trade data from China, the FTSE 100 and FTSE 250 indices have both experienced declines, reflecting broader global economic uncertainties. In such a climate, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those looking to navigate these turbulent times.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Treatt (LSE:TET) | 3.78% | ★★★★★☆ |
| Seplat Energy (LSE:SEPL) | 6.43% | ★★★★★☆ |
| Pets at Home Group (LSE:PETS) | 5.68% | ★★★★★★ |
| OSB Group (LSE:OSB) | 6.05% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 5.00% | ★★★★★☆ |
| MONY Group (LSE:MONY) | 6.25% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.92% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.22% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.45% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.13% | ★★★★★☆ |
Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
Vertu Motors (AIM:VTU)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Vertu Motors plc operates as an automotive retailer in the United Kingdom with a market cap of £186.77 million.
Operations: Vertu Motors plc generates revenue of £4.76 billion from its operations as a gasoline and auto dealer in the United Kingdom.
Dividend Yield: 3.4%
Vertu Motors offers a mixed dividend profile. Its dividends are well-covered by both earnings and cash flows, with payout ratios of 37.4% and 16.2%, respectively, suggesting sustainability. However, the company's dividend history is volatile and yields 3.43%, below top-tier UK payers. Trading at a discount to its estimated fair value enhances its appeal for value investors, despite recent executive changes which may impact future stability.
- Click here to discover the nuances of Vertu Motors with our detailed analytical dividend report.
- The analysis detailed in our Vertu Motors valuation report hints at an deflated share price compared to its estimated value.
Keller Group (LSE:KLR)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Keller Group plc offers specialist geotechnical services across North America, Europe, the Middle East, and the Asia-Pacific, with a market cap of £933.87 million.
Operations: Keller Group plc's revenue from specialist geotechnical services amounts to £2.95 billion.
Dividend Yield: 3.9%
Keller Group's dividend profile is robust, with reliable and stable payments over the past decade. The company recently increased its interim dividend to 18.3 pence per share, aligning with a progressive policy. Dividends are well-covered by earnings and cash flows, boasting payout ratios of 26.4% and 36.3%, respectively, ensuring sustainability. Despite trading below estimated fair value, recent executive changes may influence future strategic direction. The yield of 3.92% is modest compared to top UK payers.
- Click to explore a detailed breakdown of our findings in Keller Group's dividend report.
- In light of our recent valuation report, it seems possible that Keller Group is trading behind its estimated value.
Mears Group (LSE:MER)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Mears Group plc, with a market cap of £328.60 million, offers outsourced services to both public and private sectors in the United Kingdom through its subsidiaries.
Operations: Mears Group plc generates revenue through its Management segment, which accounts for £533.92 million, and its Maintenance segment, contributing £577.93 million.
Dividend Yield: 4.6%
Mears Group offers a mixed dividend profile with recent increases, such as an 18% rise in interim dividends to 5.60 pence. Despite a low payout ratio (30.5%) and strong cash coverage (15.9%), the dividend history is volatile, affecting reliability. The company trades at a favorable P/E ratio of 6.4x compared to the UK market average of 16x, but earnings are expected to decline by an average of 15% annually over the next three years.
- Get an in-depth perspective on Mears Group's performance by reading our dividend report here.
- Upon reviewing our latest valuation report, Mears Group's share price might be too pessimistic.
Summing It All Up
- Get an in-depth perspective on all 56 Top UK Dividend Stocks by using our 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.
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Ready To Venture Into Other Investment Styles?
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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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