Top 3 UK Dividend Stocks To Consider

The UK market has recently faced challenges, with the FTSE 100 index experiencing a downturn due to weak trade data from China, highlighting the interconnectedness of global economies. Amidst these fluctuations, dividend stocks can offer stability and income potential for investors seeking resilience in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Keller Group (LSE:KLR)	3.54%	★★★★★☆
OSB Group (LSE:OSB)	8.16%	★★★★★☆
Dunelm Group (LSE:DNLM)	8.06%	★★★★★☆
Man Group (LSE:EMG)	6.02%	★★★★★☆
Pets at Home Group (LSE:PETS)	5.77%	★★★★★☆
DCC (LSE:DCC)	3.64%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.67%	★★★★★☆
Grafton Group (LSE:GFTU)	3.99%	★★★★★☆
RS Group (LSE:RS1)	3.35%	★★★★★☆
James Latham (AIM:LTHM)	6.81%	★★★★★☆

Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Brooks Macdonald Group (AIM:BRK)

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

Overview: Brooks Macdonald Group plc offers investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the UK and Channel Islands, with a market cap of £233.43 million.

Operations: Brooks Macdonald Group plc generates revenue from its UK Investment Management (Including Financial Planning) segment, amounting to £113.71 million, and its International segment, contributing £19.91 million.

Dividend Yield: 5.2%

Brooks Macdonald Group has a history of stable and growing dividend payments over the past decade, though its current 5.23% yield is below the UK top tier. Despite trading at a discount to fair value, dividends are not well covered by earnings due to a high payout ratio of 194.5%. However, cash flows comfortably cover dividends with a low cash payout ratio of 35.8%. Recent strategic hires and acquisitions aim to streamline operations after selling its international arm for £51 million.

• Click to explore a detailed breakdown of our findings in Brooks Macdonald Group's dividend report.
• Our comprehensive valuation report raises the possibility that Brooks Macdonald Group is priced lower than what may be justified by its financials.

Greggs (LSE:GRG)

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

Overview: Greggs plc is a UK-based food-on-the-go retailer with a market cap of £2.18 billion.

Operations: Greggs plc generates revenue through its Business to Business (B2B) segment, which accounts for £219.90 million, and its Retail Company Managed Shops, contributing £1.71 billion.

Dividend Yield: 3%

Greggs' dividend yield of 3.03% is modest compared to the UK's top payers, but its dividends are well-supported by earnings and cash flows with payout ratios of 48% and 44.3%, respectively. Although earnings grew by 2.1% last year, the dividend history is marked by volatility over the past decade. Despite this, Greggs trades at a good value relative to peers and below its estimated fair value, offering potential for capital appreciation alongside dividends.

• Navigate through the intricacies of Greggs with our comprehensive dividend report here.
• The valuation report we've compiled suggests that Greggs' current price could be quite moderate.

Whitbread (LSE:WTB)

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

Overview: Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally with a market cap of £4.93 billion.

Operations: Whitbread plc generates revenue from its Accommodation, Food and Beverage segment, totaling £2.96 billion.

Dividend Yield: 3.4%

Whitbread's dividend yield of 3.42% is lower than the UK's top dividend payers, and its history is marked by volatility over the past decade. However, dividends are covered by earnings and cash flows with payout ratios of 77.1% and 62.3%, respectively, indicating sustainability despite past instability. Recent changes include Chris Kennedy stepping down as audit committee chair in June 2025, potentially impacting governance but not directly affecting dividend policy or financial stability.

• Click here to discover the nuances of Whitbread with our detailed analytical dividend report.
• Our valuation report here indicates Whitbread may be overvalued.

Next Steps

• Discover the full array of 62 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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Ready For A Different Approach?

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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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