The United Kingdom's FTSE 100 index has recently faced challenges, closing lower due to weak trade data from China and global market pressures. In such a volatile environment, dividend stocks can offer a measure of stability and income, making them an attractive option for investors seeking reliable returns amidst economic uncertainties.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.58% | ★★★★★★ |
| Man Group (LSE:EMG) | 7.47% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.01% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.21% | ★★★★★☆ |
| Treatt (LSE:TET) | 3.30% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.98% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.45% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.00% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 6.99% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.62% | ★★★★★☆ |
Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Somero Enterprises (AIM:SOM)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment with a market cap of £131.30 million.
Operations: Somero Enterprises, Inc. generates revenue of $109.15 million from its construction machinery and equipment segment.
Dividend Yield: 6.5%
Somero Enterprises has faced volatility in its dividend payments over the past decade, although recent increases suggest some growth. The company's dividends are currently covered by earnings, with a payout ratio of 50.1%, and cash flows, with a cash payout ratio of 75.7%. Despite this coverage, the dividend track record remains unstable. Recent changes in leadership and revised revenue guidance to US$105 million for 2025 could impact future performance and dividend reliability.
- Navigate through the intricacies of Somero Enterprises with our comprehensive dividend report here.
- Our expertly prepared valuation report Somero Enterprises implies its share price may be lower than expected.
PageGroup (LSE:PAGE)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: PageGroup plc, along with its subsidiaries, offers recruitment consultancy and related services across the UK, Europe, the Middle East, Africa, Asia Pacific, and the Americas with a market cap of £854.33 million.
Operations: PageGroup plc generates its revenue primarily through recruitment services, amounting to £1.74 billion.
Dividend Yield: 6.2%
PageGroup's dividend yield is among the top in the UK, but its sustainability is questionable due to a high payout ratio of 188.9% and earnings not covering dividends. Although cash flows adequately cover payouts with a 49.3% cash payout ratio, historical volatility raises concerns about reliability. Recent announcements include a proposed final dividend increase and executive changes, potentially affecting future stability. The company's profit margins have decreased, impacting overall financial health despite some dividend growth over the past decade.
- Take a closer look at PageGroup's potential here in our dividend report.
- Our valuation report here indicates PageGroup may be overvalued.
Treatt (LSE:TET)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Treatt plc manufactures and supplies natural extracts and ingredients for the beverage, flavor, fragrance, and consumer goods markets globally, with a market cap of £152.67 million.
Operations: Treatt plc generates revenue by manufacturing and supplying natural extracts and ingredients to the beverage, flavor, fragrance, and consumer goods sectors across various international markets.
Dividend Yield: 3.3%
Treatt's dividend payments are well-covered by earnings and cash flows, with a payout ratio of 45.6% and a cash payout ratio of 28.4%. Despite recent declines in sales and net income, the company maintained its interim dividend at 2.60 pence per share, signaling confidence in future cash generation. However, Treatt's dividend yield of 3.3% is lower than top UK payers, and recent share price volatility may concern investors focused on stability.
- Dive into the specifics of Treatt here with our thorough dividend report.
- In light of our recent valuation report, it seems possible that Treatt is trading behind its estimated value.
Taking Advantage
- Take a closer look at our Top UK Dividend Stocks list of 59 companies by clicking here.
- Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
- Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Contemplating Other Strategies?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if PageGroup might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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