Stock Analysis

Top UK Dividend Stocks To Consider In June 2025

As the FTSE 100 and FTSE 250 indices experience downward pressure due to weak trade data from China, investors are closely monitoring the impact on London markets and global economic conditions. In such uncertain times, dividend stocks can offer a measure of stability, providing regular income streams that may help offset market volatility.

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Top 10 Dividend Stocks In The United Kingdom

NameDividend YieldDividend Rating
WPP (LSE:WPP)7.07%★★★★★★
Pets at Home Group (LSE:PETS)4.94%★★★★★☆
OSB Group (LSE:OSB)6.80%★★★★★☆
NWF Group (AIM:NWF)4.71%★★★★★☆
Man Group (LSE:EMG)7.18%★★★★★☆
Keller Group (LSE:KLR)3.26%★★★★★☆
James Latham (AIM:LTHM)7.02%★★★★★☆
Grafton Group (LSE:GFTU)3.68%★★★★★☆
Dunelm Group (LSE:DNLM)6.51%★★★★★☆
4imprint Group (LSE:FOUR)5.10%★★★★★☆

Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

James Halstead (AIM:JHD)

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

Overview: James Halstead plc manufactures and supplies flooring products for commercial and domestic uses across various regions including the United Kingdom, Europe, Scandinavia, Australasia, Asia, and internationally, with a market cap of £671.03 million.

Operations: James Halstead plc generates revenue of £268.52 million from its flooring products manufacturing and distribution operations across multiple global markets.

Dividend Yield: 5.3%

James Halstead has maintained stable and reliable dividends over the past decade, with a recent 10% interim dividend increase to 2.75 pence per share. Despite a high payout ratio of 86%, dividends are covered by earnings but not by free cash flows, which poses sustainability concerns. The dividend yield of 5.28% is slightly below the top tier in the UK market, while its price-to-earnings ratio of 15.8x remains competitive against the market average.

AIM:JHD Dividend History as at Jun 2025
AIM:JHD Dividend History as at Jun 2025

Conduit Holdings (LSE:CRE)

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

Overview: Conduit Holdings Limited, with a market cap of £604.52 million, operates globally through its subsidiary to offer reinsurance products and services.

Operations: Conduit Holdings Limited generates revenue through its reinsurance operations, with segments including Casualty at $190.60 million, Property at $344.20 million, and Specialty at $154.40 million.

Dividend Yield: 6.9%

Conduit Holdings' dividend yield of 6.87% ranks in the top 25% of UK payers, supported by a low cash payout ratio of 13.9% and a reasonable earnings payout ratio of 45.1%. However, its dividend history is less reliable, with payments being volatile over its four-year record and no growth observed. Recent strategic moves include a $50 million share buyback program funded from existing cash resources, potentially impacting future dividend sustainability or growth prospects.

LSE:CRE Dividend History as at Jun 2025
LSE:CRE Dividend History as at Jun 2025

Inchcape (LSE:INCH)

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

Overview: Inchcape plc is an automotive distributor and retailer with a market capitalization of approximately £2.53 billion.

Operations: Inchcape plc generates its revenue from three primary segments: APAC (£2.99 billion), Americas (£3.27 billion), and Europe & Africa (£3.00 billion).

Dividend Yield: 4.2%

Inchcape's dividend yield of 4.18% is below the top 25% of UK dividend payers, but its payouts are well-covered by earnings and cash flows, with payout ratios at 42.9% and 20.9%, respectively. Despite past volatility in dividends, there has been growth over the last decade. Recent strategic initiatives include seeking bolt-on acquisitions, which could influence future financial performance and dividend stability amidst a high debt level and recent board changes affecting governance dynamics.

LSE:INCH Dividend History as at Jun 2025
LSE:INCH Dividend History as at Jun 2025

Summing It All Up

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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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