3 UK Dividend Stocks Yielding Up To 6.5%

As the FTSE 100 index faces headwinds from weak trade data out of China, investors in the UK market are navigating a landscape marked by global economic uncertainties. In such conditions, dividend stocks can offer a degree of stability and income potential, making them an attractive option for those seeking to weather market volatility while benefiting from consistent returns.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Livermore Investments Group (AIM:LIV)

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

Overview: Livermore Investments Group Limited is a publicly owned investment manager with a market cap of £92.19 million.

Operations: Livermore Investments Group Limited generates revenue from its Equity and Debt Instruments Investment Activities, amounting to $12.91 million.

Dividend Yield: 5.7%

Livermore Investments Group declared an interim cash dividend of $0.0423 per share, reflecting a high dividend yield of 5.66%, placing it among the top UK payers. However, with a payout ratio of 106.2%, dividends are not well covered by earnings, though cash flow coverage is better at 39.9%. Earnings have declined significantly from $13.89 million to $6.59 million year-over-year, and past dividend payments have been volatile and unreliable despite growth over the decade.

• Click here to discover the nuances of Livermore Investments Group with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Livermore Investments Group's current price could be inflated.

Dunelm Group (LSE:DNLM)

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

Overview: Dunelm Group plc operates as a retailer of homewares in the United Kingdom with a market cap of £2.42 billion.

Operations: Dunelm Group plc generates revenue primarily from its homewares retail segment, amounting to £1.73 billion.

Dividend Yield: 6.6%

Dunelm Group's dividend yield of 6.56% ranks in the top 25% of UK payers, with a payout ratio of 58.6%, indicating coverage by earnings and cash flows. Despite past volatility and unreliability in dividends, recent sales reached £1.77 billion for the year to June 2025, suggesting potential stability. The appointment of Clodagh Moriarty as CEO may influence future performance positively, given her extensive retail experience from Sainsbury's.

• Navigate through the intricacies of Dunelm Group with our comprehensive dividend report here.
• Our expertly prepared valuation report Dunelm Group implies its share price may be too high.

Pets at Home Group (LSE:PETS)

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

Overview: Pets at Home Group Plc operates as an omnichannel retailer of pet food, pet-related products, and accessories in the United Kingdom, with a market cap of £1.10 billion.

Operations: Pets at Home Group Plc generates revenue through its Retail segment, which accounts for £1.31 billion, and its Vet Group segment, contributing £175.30 million.

Dividend Yield: 5.4%

Pets at Home Group offers a stable dividend yield of 5.36%, supported by a payout ratio of 68.3% and a cash payout ratio of 34.8%, ensuring coverage by earnings and cash flows. The company has consistently increased dividends over the past decade, with the latest annual dividend reaching 13 pence per share. Trading below estimated fair value, Pets at Home also completed a £25 million share buyback to enhance shareholder value further.

• Click to explore a detailed breakdown of our findings in Pets at Home Group's dividend report.
• The valuation report we've compiled suggests that Pets at Home Group's current price could be quite moderate.

Seize The Opportunity

• Explore the 57 names from our Top UK Dividend Stocks screener here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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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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