Discover 3 Top UK Dividend Stocks

In This Article:

In the current climate, the UK's FTSE 100 index has faced challenges as weak trade data from China impacts globally connected sectors, highlighting vulnerabilities in commodity-dependent industries. Amid these fluctuations, dividend stocks can offer a measure of stability and income potential, making them an attractive option for investors seeking resilience in uncertain markets.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Pets at Home Group (LSE:PETS)

6.17%

★★★★★★

Keller Group (LSE:KLR)

3.33%

★★★★★☆

4imprint Group (LSE:FOUR)

3.48%

★★★★★☆

OSB Group (LSE:OSB)

8.27%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.40%

★★★★★☆

Man Group (LSE:EMG)

6.09%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.73%

★★★★★☆

Plus500 (LSE:PLUS)

5.97%

★★★★★☆

Grafton Group (LSE:GFTU)

3.83%

★★★★★☆

James Latham (AIM:LTHM)

6.69%

★★★★★☆

Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Bodycote

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

Overview: Bodycote plc offers heat treatment and thermal processing services globally, with a market cap of £1.15 billion.

Operations: Bodycote plc's revenue segments include £194.50 million from Aerospace, Defence & Energy in North America, £160 million in Western Europe, and £8 million in Emerging Markets; alongside Automotive & General Industrial revenues of £97.60 million from North America, £237.30 million from Western Europe, and £84 million from Emerging Markets.

Dividend Yield: 3.7%

Bodycote's dividend payments are well-supported by both earnings and cash flows, with a payout ratio of 69% and a cash payout ratio of 45.4%, respectively. However, its dividend yield of 3.65% is below the top quartile in the UK market. Despite an increase over the past decade, dividends have been volatile, experiencing significant annual drops. Recent strategic moves include a £30 million increase in its buyback plan and ongoing M&A activities to enhance growth prospects.

LSE:BOY Dividend History as at Dec 2024
LSE:BOY Dividend History as at Dec 2024

Croda International

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

Overview: Croda International Plc operates in the consumer care, life science, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of approximately £4.74 billion.

Operations: Croda International generates revenue through its Consumer Care segment (£898.90 million), Life Sciences segment (£545.30 million), and Industrial Specialties segment (£185.30 million).