3 UK Dividend Stocks To Watch With Up To 8.1% Yield

In the face of recent challenges, such as weak trade data from China impacting the FTSE 100 and a global economic slowdown, UK investors are increasingly looking towards dividend stocks for stability and income. Amidst these turbulent market conditions, identifying strong dividend-paying companies with resilient business models can be an effective strategy to weather economic uncertainties while potentially benefiting from regular income streams.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Pets at Home Group (LSE:PETS)	6.27%	★★★★★★
Keller Group (LSE:KLR)	3.48%	★★★★★☆
OSB Group (LSE:OSB)	8.26%	★★★★★☆
Dunelm Group (LSE:DNLM)	8.12%	★★★★★☆
Man Group (LSE:EMG)	6.10%	★★★★★☆
DCC (LSE:DCC)	3.67%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.73%	★★★★★☆
Grafton Group (LSE:GFTU)	4.03%	★★★★★☆
Livermore Investments Group (AIM:LIV)	6.20%	★★★★★☆
James Latham (AIM:LTHM)	6.75%	★★★★★☆

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

Let's uncover some gems from our specialized screener.

Big Yellow Group (LSE:BYG)

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

Overview: Big Yellow Group is the UK's leading brand in self storage, with a market cap of £1.87 billion.

Operations: Big Yellow Group generates its revenue primarily from the provision of self storage and related services, amounting to £203.01 million.

Dividend Yield: 4.7%

Big Yellow Group offers a stable dividend profile with reliable payments over the past decade and a current yield of 4.73%, though below the top UK payers. The payout ratios are sustainable, covered by both earnings (76.8%) and cash flows (77.5%). Despite forecasted earnings decline, recent results show revenue growth to £102.96 million and net income increase to £145.65 million for H1 2024, supporting its interim dividend continuity at 22.6 pence per share.

• Click here and access our complete dividend analysis report to understand the dynamics of Big Yellow Group.
• Insights from our recent valuation report point to the potential undervaluation of Big Yellow Group shares in the market.

Dunelm Group (LSE:DNLM)

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

Overview: Dunelm Group plc operates as a retailer of homewares in the United Kingdom, with a market capitalization of £1.96 billion.

Operations: Dunelm Group plc generates its revenue primarily through the retail of homewares in the United Kingdom, amounting to £1.71 billion.

Dividend Yield: 8.1%

Dunelm Group's dividend yield of 8.12% places it among the top UK payers, though its past decade has seen volatility and unreliability. The company's dividends are covered by earnings (payout ratio: 58.2%) and cash flows (cash payout ratio: 79.6%), indicating sustainability despite an unstable track record. Trading at a significant discount to fair value, recent sales growth to £403 million suggests potential for future stability in dividend payments amidst market challenges.

• Get an in-depth perspective on Dunelm Group's performance by reading our dividend report here.
• The analysis detailed in our Dunelm Group valuation report hints at an deflated share price compared to its estimated value.

Keller Group (LSE:KLR)

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

Overview: Keller Group plc offers specialist geotechnical services across North America, Europe, the Asia-Pacific, the Middle East, and Africa with a market cap of £995.84 million.

Operations: Keller Group plc's revenue from its specialist geotechnical services amounts to £2.99 billion.

Dividend Yield: 3.5%

Keller Group offers a stable dividend history over the past decade, with payments well-covered by earnings (payout ratio: 27.6%) and cash flows (cash payout ratio: 18.1%). Although its 3.48% yield is below top-tier UK payers, the company's dividends have grown steadily without volatility. Trading at a discount to fair value, Keller's financial health supports sustainable dividend payouts amidst upcoming leadership changes, including Carl-Peter Forster's appointment as Chair in March 2025.

• Click here to discover the nuances of Keller Group with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, Keller Group's share price might be too pessimistic.

Key Takeaways

• Embark on your investment journey to our 62 Top UK Dividend Stocks selection 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.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Ready For A Different Approach?

• 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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