Stock Analysis

UK Dividend Stocks To Consider In February 2025

LSE:RIO
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The UK stock market has recently faced challenges, with the FTSE 100 index experiencing a dip due to weak trade data from China, highlighting concerns about global economic recovery. In such uncertain times, dividend stocks can offer a measure of stability and potential income for investors seeking to navigate these volatile market conditions.

Top 10 Dividend Stocks In The United Kingdom

NameDividend YieldDividend Rating
Keller Group (LSE:KLR)3.53%★★★★★☆
Dunelm Group (LSE:DNLM)7.81%★★★★★☆
OSB Group (LSE:OSB)7.78%★★★★★☆
Man Group (LSE:EMG)5.80%★★★★★☆
DCC (LSE:DCC)3.65%★★★★★☆
Big Yellow Group (LSE:BYG)4.83%★★★★★☆
NWF Group (AIM:NWF)4.70%★★★★★☆
Grafton Group (LSE:GFTU)4.04%★★★★★☆
James Latham (AIM:LTHM)7.24%★★★★★☆
RS Group (LSE:RS1)3.43%★★★★★☆

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

We'll examine a selection from our screener results.

M.P. Evans Group (AIM:MPE)

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

Overview: M.P. Evans Group PLC, with a market cap of £580.37 million, engages in the ownership and development of oil palm plantations through its subsidiaries in Indonesia and Malaysia.

Operations: M.P. Evans Group PLC generates its revenue primarily from its plantation operations in Indonesia, amounting to $336.59 million.

Dividend Yield: 3.9%

M.P. Evans Group's dividend payments are well-supported by earnings and cash flows, with a payout ratio of 48.9% and a cash payout ratio of 32.4%. Despite this, the company's dividends have been volatile over the past decade, impacting reliability. While trading at good value compared to peers, its dividend yield of 3.88% is below top-tier UK payers. Recent production results show slight declines in crude palm oil but improvements in fresh fruit bunches from own crops.

AIM:MPE Dividend History as at Feb 2025
AIM:MPE Dividend History as at Feb 2025

Ninety One Group (LSE:N91)

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

Overview: Ninety One Group is an independent global asset manager with a market cap of £1.32 billion, operating worldwide.

Operations: Ninety One Group generates its revenue primarily from its Investment Management Business, which amounts to £584.50 million.

Dividend Yield: 8%

Ninety One Group's dividends are well-covered by earnings and cash flows, with payout ratios of 67.9% and 55.9%, respectively. However, dividend reliability is a concern due to their short four-year history without growth. The stock is trading below its estimated fair value and offers a top-tier UK dividend yield of 8.02%. Recent share repurchase activities aim to support long-term incentive plans, while leadership changes may influence strategic direction in alternative credit markets.

LSE:N91 Dividend History as at Feb 2025
LSE:N91 Dividend History as at Feb 2025

Rio Tinto Group (LSE:RIO)

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

Overview: Rio Tinto Group is involved in the exploration, mining, and processing of mineral resources globally, with a market cap of approximately £86.16 billion.

Operations: Rio Tinto Group's revenue segments include Copper at $7.60 billion, Iron Ore at $31.86 billion, Minerals at $5.78 billion, and Aluminium at $12.51 billion.

Dividend Yield: 6.8%

Rio Tinto's dividend yield of 6.79% ranks in the top 25% of UK dividend payers but is not well-covered by free cash flows, with a high cash payout ratio of 98.9%. While dividends have grown over the past decade, they remain volatile and unreliable. Recent events include resumed operations after cyclone disruptions and unchanged Pilbara shipment guidance for 2025, which may impact near-term financial stability amidst ongoing legal settlements and strategic expansions in lithium and aluminium sectors.

LSE:RIO Dividend History as at Feb 2025
LSE:RIO Dividend History as at Feb 2025

Key Takeaways

  • Click through to start exploring the rest of the 55 Top UK Dividend Stocks now.
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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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