Stock Analysis

Croda International And 2 Other UK Dividend Stocks To Consider

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The UK stock market has been grappling with challenges as the FTSE 100 index recently faltered, driven by weak trade data from China and a global economic slowdown. In such uncertain times, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those looking to navigate the current market volatility.

Top 10 Dividend Stocks In The United Kingdom

NameDividend YieldDividend Rating
Pets at Home Group (LSE:PETS)5.69%★★★★★★
OSB Group (LSE:OSB)7.84%★★★★★☆
Dunelm Group (LSE:DNLM)7.83%★★★★★☆
Man Group (LSE:EMG)5.89%★★★★★☆
DCC (LSE:DCC)3.72%★★★★★☆
Epwin Group (AIM:EPWN)5.66%★★★★★☆
Big Yellow Group (LSE:BYG)4.88%★★★★★☆
NWF Group (AIM:NWF)4.70%★★★★★☆
Grafton Group (LSE:GFTU)4.16%★★★★★☆
James Latham (AIM:LTHM)7.24%★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Croda International (LSE:CRDA)

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

Overview: Croda International Plc operates in the consumer care, life sciences, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of approximately £4.43 billion.

Operations: Croda International Plc generates revenue through its key segments: Consumer Care (£898.90 million), Life Sciences (£545.30 million), and Industrial Specialties (£185.30 million).

Dividend Yield: 3.4%

Croda International's dividend payments, although reliable and stable over the past decade, are not well covered by earnings with a high payout ratio of 93.5%. The cash payout ratio of 80.4% indicates dividends are supported by cash flows, but sustainability concerns remain. The dividend yield of 3.44% is below top-tier UK payers. Recent participation in the Bank of America European Materials Conference highlights Croda's ongoing engagement with investors and industry stakeholders.

LSE:CRDA Dividend History as at Feb 2025

Games Workshop Group (LSE:GAW)

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

Overview: Games Workshop Group PLC designs, manufactures, distributes, and sells fantasy miniature figures and games globally, with a market cap of £4.70 billion.

Operations: Games Workshop Group PLC generates revenue through its Core segment, which accounts for £528.50 million, and its Licensing segment, contributing £49 million.

Dividend Yield: 3.8%

Games Workshop Group's dividend payments have grown over the past decade, showing reliability and stability. However, with a cash payout ratio of 111.6%, dividends are not well covered by free cash flows, raising sustainability concerns despite earnings coverage at a 77.2% payout ratio. The dividend yield of 3.78% is below top-tier UK payers. Recent board changes include Eric Maugein's appointment as Non-Executive Director, potentially influencing future strategic directions in new markets.

LSE:GAW Dividend History as at Feb 2025

Kingfisher (LSE:KGF)

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

Overview: Kingfisher plc, with a market cap of £4.34 billion, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally through its subsidiaries.

Operations: Kingfisher plc generates revenue of £12.86 billion from its supply of home improvement products and services across multiple regions.

Dividend Yield: 5.1%

Kingfisher's dividend payments are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%. However, the dividends have been volatile over the past decade, affecting reliability. The yield is below top-tier UK payers at 5.07%. Recent board changes include Ian McLeod's appointment as Non-Executive Director, bringing extensive retail experience that may influence future strategic decisions amidst ongoing leadership transitions.

LSE:KGF Dividend History as at Feb 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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