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As the UK market grapples with global economic challenges, notably influenced by China's sluggish recovery and its impact on commodity prices, investors are increasingly looking for stability amidst uncertainty. In such a climate, dividend stocks can offer a reliable income stream and potential resilience against market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 6.83% | ★★★★★★ |
| Man Group (LSE:EMG) | 6.77% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.48% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 4.87% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.83% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.78% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.26% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.69% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.76% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.31% | ★★★★★☆ |
Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Arbuthnot Banking Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market cap of £145.06 million.
Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (£13.67 million), ALL Other Divisions (£18.67 million), Asset Alliance Group (AAG) (£15.34 million), Renaissance Asset Finance (RAF) (£12.56 million), Banking excluding Wealth Management (£95.64 million), and Arbuthnot Commercial Asset Based Lending (ACABL) (£19.93 million).
Dividend Yield: 5.4%
Arbuthnot Banking Group's recent earnings report shows a decline in net interest income and net income, but the company announced a higher total dividend of 69 pence per share for 2024, up from 46 pence in 2023. Despite an unstable dividend history, the current payout ratio of 32.2% suggests dividends are well covered by earnings. The stock trades significantly below its estimated fair value, though it has a high level of bad loans at 3.4%.
IG Group Holdings
Simply Wall St Dividend Rating: ★★★★★☆
Overview: IG Group Holdings plc is a fintech company that operates in the online trading business globally, with a market cap of £3.40 billion.
Operations: IG Group Holdings plc generates revenue primarily through its brokerage segment, which amounted to £1.01 billion.
Dividend Yield: 4.8%
IG Group Holdings has demonstrated a stable and growing dividend history over the past decade, with recent increases reflecting solid financial performance. The interim dividend rose to 13.86 pence per share, supported by a low payout ratio of 47.5%, ensuring dividends are well covered by earnings and cash flows. Additionally, the company completed significant share buybacks worth £250.75 million, enhancing shareholder value while trading at an attractive valuation compared to its peers.