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The UK market has recently experienced some turbulence, with the FTSE 100 index closing lower amid concerns over weak trade data from China and its impact on global economic recovery. In such uncertain times, dividend stocks can offer a degree of stability and income potential, making them an attractive consideration for investors looking to navigate these challenging conditions.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 7.00% | ★★★★★★ |
| Man Group (LSE:EMG) | 7.05% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.58% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.29% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.27% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.90% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.72% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.95% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.78% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.38% | ★★★★★☆ |
Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
James Halstead
Simply Wall St Dividend Rating: ★★★★★☆
Overview: James Halstead plc is a manufacturer and supplier of flooring products for both commercial and domestic markets across the UK, Europe, Scandinavia, Australasia, Asia, and other international regions with a market cap of £577.25 million.
Operations: James Halstead plc generates revenue of £268.52 million from the manufacture and distribution of flooring products across various global markets.
Dividend Yield: 6.1%
James Halstead's dividend yield of 6.14% ranks in the top 25% among UK dividend payers, with stable and reliable growth over the past decade. However, its high cash payout ratio of 95% suggests dividends are not well covered by cash flows, raising sustainability concerns despite a recent interim dividend increase of 10%. The company trades at a discount to estimated fair value and reported slight earnings growth with net income rising to £20.97 million for H1 2024.
Drax Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Drax Group plc, with a market cap of £2.12 billion, operates in the United Kingdom focusing on renewable power generation through its subsidiaries.
Operations: Drax Group's revenue is primarily derived from Biomass Generation (£4.92 billion), Energy Solutions (£3.79 billion), Pellet Production (£942.10 million), and Flexible Generation (£222.80 million).
Dividend Yield: 4.4%
Drax Group's dividend payments have been volatile over the past decade, but recent increases reflect growth, with a proposed final dividend of £57 million for 2024. Despite a low payout ratio (18.9%) and cash payout ratio (19.8%), indicating solid earnings and cash flow coverage, its dividend yield of 4.4% is below the top UK payers. Recent capacity agreements promise future income streams, yet significant insider selling raises concerns about long-term stability.