In This Article:
As the FTSE 100 experiences downward pressure due to weak trade data from China and global economic uncertainties, investors are increasingly turning their attention to dividend stocks as a potential source of steady income amidst market volatility. In such an environment, identifying companies with strong fundamentals and a consistent dividend history becomes essential for those seeking stability in their investment portfolios.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| WPP (LSE:WPP) | 7.34% | ★★★★★★ |
| Man Group (LSE:EMG) | 8.30% | ★★★★★☆ |
| Treatt (LSE:TET) | 3.71% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.88% | ★★★★★☆ |
| DCC (LSE:DCC) | 4.01% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 4.67% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 4.18% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 7.69% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.58% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 7.63% | ★★★★★☆ |
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.
Somero Enterprises
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling and contouring equipment globally with a market cap of £132.94 million.
Operations: Somero Enterprises, Inc. generates revenue primarily from its construction machinery and equipment segment, totaling $109.15 million.
Dividend Yield: 6.5%
Somero Enterprises has a dividend yield in the top 25% of UK payers, supported by a payout ratio of 50.1% and cash flow coverage at 75.8%. However, the dividend history is volatile with occasional large drops. Recent leadership changes include Timothy Averkamp as CEO and Robert Scheuer as Chairman, potentially impacting strategic direction. Despite earnings decline to US$18.6 million from US$27.98 million, a special dividend was announced alongside regular payouts for fiscal year 2024.
Irish Continental Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Irish Continental Group plc is a maritime transport company operating in Ireland, the United Kingdom, and Continental Europe, with a market cap of £713.95 million.
Operations: Irish Continental Group plc generates its revenue through two primary segments: Ferries, contributing €433.50 million, and Container and Terminal operations, which account for €203.50 million.
Dividend Yield: 3.1%
Irish Continental Group's dividend reliability is questioned due to a volatile 10-year history, despite recent growth. The company's cash payout ratio of 25% and earnings payout ratio of 42.8% suggest dividends are well-covered by both cash flow and earnings. However, its yield at 3.06% lags behind top UK payers. Recent results show stable revenue growth from €572 million to €603.8 million, with net income slightly decreasing to €59.9 million in 2024.