Top UK Dividend Stocks To Consider In May 2025

As the United Kingdom's FTSE 100 index faces challenges amid weak trade data from China and global economic uncertainties, investors are closely monitoring market movements. In such a climate, dividend stocks can offer a measure of stability and potential income, making them an attractive option for those seeking to navigate these turbulent times.

Top 10 Dividend Stocks In The United Kingdom

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

Let's explore several standout options from the results in the screener.

Wynnstay Group (AIM:WYN)

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

Overview: Wynnstay Group Plc manufactures and supplies agricultural products and services in the United Kingdom, with a market cap of £74.90 million.

Operations: Wynnstay Group Plc generates revenue through its segments of Feed & Grain (£353.26 million), Fertiliser & Seed (£119.71 million), and Depots Merchanting (£140.08 million) in the United Kingdom.

Dividend Yield: 5.4%

Wynnstay Group has consistently increased its dividends over the past decade, though its current payout ratio of 144.5% suggests dividends are not well covered by earnings. Despite this, a low cash payout ratio of 23.8% indicates strong coverage by cash flows. Recent board changes could influence strategic direction, while profit margins have decreased to 0.5%. The dividend yield of 5.38% is below the top UK payers, but stability remains a positive aspect for investors seeking consistent income.

• Get an in-depth perspective on Wynnstay Group's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Wynnstay Group's share price might be too optimistic.

Foresight Environmental Infrastructure (LSE:FGEN)

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

Overview: Foresight Environmental Infrastructure, with a market cap of £492.65 million, operates as a fund under John Laing Capital Management Limited, focusing on investments in environmental infrastructure assets.

Operations: Foresight Environmental Infrastructure reports revenue from its segment "Investment in Environmental Infrastructure" amounting to -£6.50 million.

Dividend Yield: 10%

Foresight Environmental Infrastructure's dividends have been stable and growing over the past decade, yet they are not well-covered by earnings or cash flow, raising sustainability concerns. Despite a high dividend yield of 9.99%, the company remains unprofitable with no free cash flows. Recent financial maneuvers include reducing its Revolving Credit Facility to £150 million for cost savings and increasing its equity buyback plan authorization to £30 million, reflecting strategic capital management efforts.

• Take a closer look at Foresight Environmental Infrastructure's potential here in our dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Foresight Environmental Infrastructure shares in the market.

Stelrad Group (LSE:SRAD)

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

Overview: Stelrad Group PLC manufactures and distributes radiators across the United Kingdom, Ireland, Europe, Turkey, and internationally with a market cap of £168.11 million.

Operations: Stelrad Group PLC generates revenue of £290.58 million from its radiator manufacturing and distribution activities.

Dividend Yield: 5.9%

Stelrad Group's dividend payments are covered by both earnings and cash flows, with payout ratios of 60.1% and 51%, respectively. Despite this, the company has a high level of debt and an unstable dividend track record over less than a decade, marked by volatility in payments. Recent earnings showed improved net income to £16.52 million despite decreased sales. The board recommended a modest 2% increase in the final dividend for 2024, reflecting cautious growth amidst financial challenges.

• Dive into the specifics of Stelrad Group here with our thorough dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Stelrad Group shares in the market.

Where To Now?

• Reveal the 62 hidden gems among our Top UK Dividend Stocks screener with a single click here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Interested In Other Possibilities?

• 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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