3 Dividend Stocks In The UK To Consider For Your Portfolio

The UK market has recently faced challenges as the FTSE 100 index faltered due to weak trade data from China, highlighting the interconnected nature of global economies and their impact on local indices. In such uncertain times, dividend stocks can offer a measure of stability and income potential, making them an attractive consideration for investors looking to navigate these volatile market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
WPP (LSE:WPP)	7.13%	★★★★★★
Man Group (LSE:EMG)	7.91%	★★★★★☆
Treatt (LSE:TET)	3.43%	★★★★★☆
4imprint Group (LSE:FOUR)	5.59%	★★★★★☆
DCC (LSE:DCC)	4.18%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.70%	★★★★★☆
Grafton Group (LSE:GFTU)	4.15%	★★★★★☆
OSB Group (LSE:OSB)	7.48%	★★★★★☆
NWF Group (AIM:NWF)	4.55%	★★★★★☆
James Latham (AIM:LTHM)	7.41%	★★★★★☆

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

We'll examine a selection from our screener results.

Bunzl (LSE:BNZL)

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

Overview: Bunzl plc is a distribution and services company operating in North America, Continental Europe, the United Kingdom, Ireland, and internationally with a market cap of approximately £7.77 billion.

Operations: Bunzl plc generates revenue primarily from its Packaging & Containers segment, which amounts to £11.78 billion.

Dividend Yield: 3.1%

Bunzl's dividends are well-covered by both earnings and cash flows, with payout ratios of 49.4% and 28.1%, respectively. However, the dividend track record has been volatile over the past decade despite a recent increase in payouts, marking its 32nd consecutive year of growth. The company's high debt level and volatile share price may concern some investors. Recent guidance suggests moderate revenue growth for 2025, driven by acquisitions but with slightly lower operating margins expected compared to previous years.

• Click here and access our complete dividend analysis report to understand the dynamics of Bunzl.
• Our comprehensive valuation report raises the possibility that Bunzl is priced lower than what may be justified by its financials.

Man Group (LSE:EMG)

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

Overview: Man Group Limited is a publicly owned investment manager with a market cap of approximately £1.88 billion.

Operations: Man Group Limited generates revenue of $1.43 billion from its Investment Management Business segment.

Dividend Yield: 7.9%

Man Group's dividend payments have been volatile over the past decade, though recent increases suggest a focus on progressive growth. The dividends are well-covered by earnings and cash flows, with payout ratios of 67% and 32.5%, respectively. Despite a share repurchase program worth $100 million to enhance shareholder value, potential investors should note the impact of large one-off items on financial results. Earnings grew significantly last year, supporting future dividend sustainability.

• Click to explore a detailed breakdown of our findings in Man Group's dividend report.
• The analysis detailed in our Man Group valuation report hints at an deflated share price compared to its estimated value.

4imprint Group (LSE:FOUR)

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

Overview: 4imprint Group plc operates as a direct marketer of promotional products in North America, the United Kingdom, and Ireland, with a market cap of £897.24 million.

Operations: 4imprint Group plc generates its revenue primarily from North America with $1.34 billion, and also from the UK and Ireland with $25.20 million.

Dividend Yield: 5.6%

4imprint Group's dividends are well-supported by earnings and cash flows, with payout ratios of 57.7% and 58.9%, respectively, reflecting sustainability. The company has consistently increased its dividends over the past decade, recently recommending a final dividend per share of 160 cents and a special dividend of 250 cents for 2024. Despite trading below its estimated fair value, it offers a reliable yield of 5.59%, although slightly below top-tier UK payers. Recent leadership changes may impact future strategy amidst market uncertainties.

• Dive into the specifics of 4imprint Group here with our thorough dividend report.
• According our valuation report, there's an indication that 4imprint Group's share price might be on the cheaper side.

Turning Ideas Into Actions

• Dive into all 62 of the Top UK Dividend Stocks we have identified here.
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Curious About Other Options?

• 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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