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As the UK market navigates challenges stemming from weak trade data from China, the FTSE 100 and FTSE 250 indices have recently experienced declines, reflecting global economic uncertainties. In such a fluctuating environment, dividend stocks can offer investors a degree of stability and income potential, making them an attractive consideration for those looking to bolster their portfolios amidst market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Pets at Home Group (LSE:PETS) | 6.07% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.50% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.31% | ★★★★★☆ |
| IG Group Holdings (LSE:IGG) | 4.55% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 8.19% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.10% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.67% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.70% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.04% | ★★★★★☆ |
| 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 take a closer look at a couple of our picks from the screened companies.
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 and has a market cap of £141.73 million.
Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (£12.32 million), Asset Alliance Group (AAG) (£14.81 million), Renaissance Asset Finance (RAF) (£9.59 million), and Arbuthnot Commercial Asset Based Lending (ACABL) (£16.03 million).
Dividend Yield: 5.4%
Arbuthnot Banking Group's dividend yield of 5.4% is below the top tier in the UK market, and its dividend history has been volatile, indicating unreliability. However, dividends are well covered by earnings with a low payout ratio of 24.9%, expected to remain sustainable at 37.2% in three years. Despite trading at a discount to its estimated fair value, concerns include a high level of bad loans (4.2%) and an insufficient allowance for these loans (8%).
Grafton Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Grafton Group plc operates in the distribution, retailing, and manufacturing sectors across Ireland, the Netherlands, Finland, and the United Kingdom with a market cap of £1.78 billion.
Operations: Grafton Group plc's revenue segments are comprised of Retailing (£257.64 million), Manufacturing (£123.80 million), UK Distribution (£793.17 million), Finland Distribution (£134.42 million), Ireland Distribution (£630.06 million), and Netherlands Distribution (£342.09 million).