Big Yellow Group And 2 More UK Dividend Stocks To Consider

Amidst the recent downturn in the FTSE 100, influenced by weak trade data from China and its subsequent impact on global markets, investors are seeking stability through reliable income sources. In such uncertain times, dividend stocks like Big Yellow Group offer a compelling option for those looking to secure steady returns while navigating market volatility.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Keller Group (LSE:KLR)	3.55%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.77%	★★★★★☆
OSB Group (LSE:OSB)	7.72%	★★★★★☆
Man Group (LSE:EMG)	5.81%	★★★★★☆
Epwin Group (AIM:EPWN)	5.80%	★★★★★☆
DCC (LSE:DCC)	3.72%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.77%	★★★★★☆
NWF Group (AIM:NWF)	4.62%	★★★★★☆
Grafton Group (LSE:GFTU)	4.26%	★★★★★☆
James Latham (AIM:LTHM)	7.21%	★★★★★☆

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

Let's dive into some prime choices out of the 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 £1.85 billion.

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

Dividend Yield: 4.8%

Big Yellow Group offers a stable dividend history with a yield of 4.77%, though it trails the top UK dividend payers. The dividends are well-covered by earnings and cash flows, with payout ratios of 76.8% and 77.5%, respectively, indicating sustainability. Its price-to-earnings ratio (7x) suggests good value relative to the UK market average (16.2x). However, future earnings are expected to decline by an average of 2.8% annually over three years, which may impact long-term growth prospects.

• Take a closer look at Big Yellow Group's potential here in our dividend report.
• Our valuation report here indicates Big Yellow Group may be undervalued.

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 cap of £2.05 billion.

Operations: Dunelm Group plc generates revenue of £1.73 billion from its homewares retail segment in the United Kingdom.

Dividend Yield: 7.8%

Dunelm Group's dividend yield of 7.77% places it among the top UK dividend payers, supported by a solid earnings payout ratio of 58.6% and cash flow coverage at 52.9%. Despite a volatile dividend history, recent announcements include an interim and special dividend totaling £104.2 million, reflecting strong cash generation. The company's price-to-earnings ratio of 13.4x indicates good value compared to the broader UK market, though executive changes may introduce uncertainty in leadership continuity.

• Navigate through the intricacies of Dunelm Group with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, Dunelm Group's share price might be too pessimistic.

Wilmington (LSE:WIL)

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

Overview: Wilmington plc, with a market cap of £305.95 million, offers data, information, training, and education solutions to professional markets across the UK, US, Europe, and internationally.

Operations: Wilmington plc generates revenue through its segments in Legal (£15.64 million), Finance (£69.85 million), and Health, Safety and Environment (HSE) (£10.39 million).

Dividend Yield: 3.3%

Wilmington plc maintains a stable interim dividend of 3.00 pence, despite a decline in net income to £2.59 million for H1 2025. The dividend yield of 3.32% is modest compared to top UK payers, but it remains covered by both earnings and cash flows with payout ratios at 72.5% and 57.4%, respectively. However, the company's dividends have been volatile over the past decade, impacting their reliability for consistent income-seeking investors.

• Unlock comprehensive insights into our analysis of Wilmington stock in this dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Wilmington shares in the market.

Summing It All Up

• Get an in-depth perspective on all 58 Top UK Dividend Stocks by using our screener 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.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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.

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