Associated British Foods And 2 Other Top UK Dividend Stocks

The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China, which underscores the challenges facing global markets. In such uncertain economic conditions, dividend stocks can offer a measure of stability and income potential for investors seeking to navigate the volatility.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Treatt (LSE:TET)	3.15%	★★★★★☆
Seplat Energy (LSE:SEPL)	6.00%	★★★★★☆
RS Group (LSE:RS1)	3.96%	★★★★★☆
Pets at Home Group (LSE:PETS)	5.69%	★★★★★★
OSB Group (LSE:OSB)	6.17%	★★★★★☆
NWF Group (AIM:NWF)	4.71%	★★★★★☆
MONY Group (LSE:MONY)	6.24%	★★★★★★
Keller Group (LSE:KLR)	3.69%	★★★★★☆
IG Group Holdings (LSE:IGG)	4.19%	★★★★★☆
4imprint Group (LSE:FOUR)	5.41%	★★★★★☆

Click here to see the full list of 48 stocks from our Top UK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Associated British Foods (LSE:ABF)

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

Overview: Associated British Foods plc is a diversified company engaged in food production, ingredients manufacturing, and retail operations globally, with a market cap of approximately £14.24 billion.

Operations: Associated British Foods plc generates its revenue from five main segments: Sugar (£2.46 billion), Retail (£9.42 billion), Grocery (£4.21 billion), Agriculture (£1.62 billion), and Ingredients (£2.11 billion).

Dividend Yield: 4.5%

Associated British Foods has a mixed dividend profile, with dividends well-covered by earnings (35.4% payout ratio) and cash flows (50% cash payout ratio). However, its dividend yield of 4.5% is below the UK top quartile, and payments have been historically volatile. Recent business expansions include new store openings in multiple countries and upcoming franchise launches in the Middle East, potentially supporting future growth. The stock trades at a discount to estimated fair value.

• Delve into the full analysis dividend report here for a deeper understanding of Associated British Foods.
• Our expertly prepared valuation report Associated British Foods implies its share price may be lower than expected.

Genuit Group (LSE:GEN)

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

Overview: Genuit Group plc develops and produces solutions for water, climate, and ventilation management in the construction industry across the United Kingdom, Europe, and internationally with a market cap of £841.38 million.

Operations: Genuit Group's revenue is primarily derived from its Water Management Solutions (£190.80 million), Climate Management Solutions (£174.10 million), and Sustainable Building Solutions (£261.70 million) segments.

Dividend Yield: 3.7%

Genuit Group's dividend payments are supported by earnings (63.9% payout ratio) and cash flows (50.2% cash payout ratio), though its yield of 3.68% is below the UK top quartile. The company recently proposed a modest interim dividend increase to 4.2 pence per share, reflecting confidence in medium-term prospects despite a historically unstable dividend track record. Genuit trades at a discount to fair value, with recent earnings showing significant growth, enhancing its investment appeal for income-focused investors.

• Unlock comprehensive insights into our analysis of Genuit Group stock in this dividend report.
• The valuation report we've compiled suggests that Genuit Group's current price could be quite moderate.

Softcat (LSE:SCT)

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

Overview: Softcat plc is a UK-based value-added IT reseller and IT infrastructure solutions provider with a market cap of £3.18 billion.

Operations: Softcat plc generates revenue of £1.04 billion from its operations as an IT reseller and provider of IT infrastructure solutions in the UK.

Dividend Yield: 3%

Softcat's dividend payments are supported by earnings with a 43% payout ratio and cash flows at an 81.3% cash payout ratio, though its yield of 3.01% is below the UK's top quartile. Despite past volatility in dividends, recent growth in earnings and projected high-teens profit increases for 2025 suggest potential stability. The company’s participation at PropelX signals ongoing engagement with stakeholders, possibly enhancing long-term investor confidence despite its historical dividend unreliability.

• Get an in-depth perspective on Softcat's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Softcat's share price might be too optimistic.

Taking Advantage

• Discover the full array of 48 Top UK Dividend Stocks right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Seeking Other Investments?

• 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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