3 Dividend Stocks In The UK With Up To 7.1% Yield

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In the wake of recent economic data from China, the UK's FTSE 100 and FTSE 250 indices have experienced declines, reflecting broader concerns about global trade and commodity demand. Amid these market fluctuations, dividend stocks can offer a measure of stability by providing consistent income streams, making them an attractive option for investors seeking resilience in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

WPP (LSE:WPP)

6.75%

★★★★★★

Man Group (LSE:EMG)

7.55%

★★★★★☆

Treatt (LSE:TET)

3.17%

★★★★★☆

4imprint Group (LSE:FOUR)

5.65%

★★★★★☆

DCC (LSE:DCC)

4.00%

★★★★★☆

NWF Group (AIM:NWF)

4.74%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.49%

★★★★★☆

Grafton Group (LSE:GFTU)

3.75%

★★★★★☆

James Latham (AIM:LTHM)

7.41%

★★★★★☆

OSB Group (LSE:OSB)

6.89%

★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

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

Associated British Foods

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

Overview: Associated British Foods plc is a diversified company engaged in food, ingredients, and retail operations globally, with a market cap of £14.57 billion.

Operations: Associated British Foods generates revenue through its diverse segments, including £2.53 billion from Sugar, £9.45 billion from Retail, £4.24 billion from Grocery, £1.65 billion from Agriculture, and £2.13 billion from Ingredients.

Dividend Yield: 4.4%

Associated British Foods' dividend yield of 4.44% is below the top UK payers, and its dividends have been volatile over the past decade. Despite this, dividends are well-covered by earnings and cash flows with payout ratios of 32.5% and 38.3%, respectively. Recent affirmations include a 20.7 pence interim dividend payable in July 2025, even as Allied Bakeries faces challenges prompting strategic evaluations to enhance shareholder value amidst M&A discussions with Endless LLP.

LSE:ABF Dividend History as at May 2025
LSE:ABF Dividend History as at May 2025

Castings

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

Overview: Castings P.L.C. is involved in iron casting and machining operations across various international markets, including the UK, Europe, and the Americas, with a market cap of £111.25 million.

Operations: Castings P.L.C. generates revenue through its Foundry Operations, contributing £225.67 million, and Machining Operations, adding £35.57 million.

Dividend Yield: 7.2%

Castings offers a dividend yield of 7.19%, placing it among the top UK payers, but its dividends have been volatile and are not supported by free cash flows. Despite this, the payout ratio is reasonable at 66.1%, indicating coverage by earnings. However, the lack of free cash flow raises concerns about sustainability. The stock trades at 49.8% below estimated fair value, which may appeal to value-focused investors despite anticipated earnings declines over the next three years.