Top UK Dividend Stocks To Consider In January 2025

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As the UK market grapples with global economic challenges, particularly those stemming from China's sluggish recovery, the FTSE 100 has experienced a downturn, reflecting broader concerns about international trade and commodity prices. In this climate of uncertainty, dividend stocks can offer investors a measure of stability and income potential by providing regular payouts even when market conditions are volatile.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Pets at Home Group (LSE:PETS)

6.41%

★★★★★★

Keller Group (LSE:KLR)

3.63%

★★★★★☆

4imprint Group (LSE:FOUR)

3.47%

★★★★★☆

OSB Group (LSE:OSB)

8.88%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.89%

★★★★★☆

Grafton Group (LSE:GFTU)

4.29%

★★★★★☆

Man Group (LSE:EMG)

6.40%

★★★★★☆

Big Yellow Group (LSE:BYG)

5.08%

★★★★★☆

DCC (LSE:DCC)

3.96%

★★★★★☆

James Latham (AIM:LTHM)

6.93%

★★★★★☆

Click here to see the full list of 65 stocks from our Top UK Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Alumasc Group

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

Overview: The Alumasc Group plc manufactures and sells building products, systems, and solutions across various regions including the United Kingdom, Europe, North America, the Middle East, and the Far East; it has a market cap of £107.17 million.

Operations: The Alumasc Group's revenue is derived from three main segments: Water Management (£48.32 million), Building Envelope (£37.60 million), and Housebuilding Products (£14.81 million).

Dividend Yield: 3.6%

Alumasc Group recently declared a final dividend of 7.3 pence per share, reflecting its commitment to returning value to shareholders. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 44.2% and 36.9%, respectively, indicating sustainability. However, the dividend yield is relatively low compared to top UK payers and has been volatile over the past decade, raising concerns about reliability despite recent growth in earnings and favorable valuation metrics.

AIM:ALU Dividend History as at Jan 2025
AIM:ALU Dividend History as at Jan 2025

Lloyds Banking Group

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

Overview: Lloyds Banking Group plc, along with its subsidiaries, offers a variety of banking and financial services both in the United Kingdom and internationally, with a market cap of £32.46 billion.

Operations: Lloyds Banking Group generates revenue through diverse banking and financial services operations across the UK and international markets.