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The United Kingdom's FTSE 100 index recently faced downward pressure, closing 0.4 percent lower at 7,527.42 amid weak trade data from China and global economic uncertainties. Despite these challenges, dividend stocks continue to attract investors seeking steady income streams and potential resilience in volatile markets.
Top 10 Dividend Stocks In The United Kingdom
Name | Dividend Yield | Dividend Rating |
James Latham (AIM:LTHM) | 5.73% | ★★★★★★ |
Shoe Zone (AIM:SHOE) | 9.80% | ★★★★★☆ |
4imprint Group (LSE:FOUR) | 3.16% | ★★★★★☆ |
OSB Group (LSE:OSB) | 8.31% | ★★★★★☆ |
Plus500 (LSE:PLUS) | 5.85% | ★★★★★☆ |
Man Group (LSE:EMG) | 5.59% | ★★★★★☆ |
Big Yellow Group (LSE:BYG) | 3.51% | ★★★★★☆ |
Dunelm Group (LSE:DNLM) | 6.66% | ★★★★★☆ |
NWF Group (AIM:NWF) | 4.98% | ★★★★★☆ |
Grafton Group (LSE:GFTU) | 3.44% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Morgan Sindall Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Morgan Sindall Group plc operates as a construction and regeneration company in the United Kingdom with a market cap of £1.45 billion.
Operations: Morgan Sindall Group plc generates revenue from several segments, including Fit Out (£1.24 billion), Construction (£1.02 billion), Infrastructure (£989.20 million), Property Services (£191.80 million), Urban Regeneration (£148.40 million), and Partnership Housing (£845.20 million).
Dividend Yield: 3.9%
Morgan Sindall Group has demonstrated a volatile dividend track record over the past decade, with payments experiencing significant fluctuations. Despite this, the company's dividends are well-covered by both earnings (44.7% payout ratio) and free cash flows (33.4% cash payout ratio). Recent earnings growth of 93.1% and a 15% increase in the interim dividend to 41.5 pence per share suggest positive momentum. However, its current yield of 3.88% remains below the UK's top quartile payers at 5.48%.
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Click to explore a detailed breakdown of our findings in Morgan Sindall Group's dividend report.
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Our valuation report here indicates Morgan Sindall Group may be undervalued.
Pets at Home Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Pets at Home Group Plc operates as a specialist omnichannel retailer of pet food, related products, and accessories in the United Kingdom with a market cap of £1.42 billion.
Operations: The company's revenue segments include Retail at £1.33 billion and the Vet Group at £146.50 million.
Dividend Yield: 4.1%
Pets at Home Group offers a stable dividend yield of 4.14%, though it falls short of the UK's top quartile payers at 5.48%. Over the past decade, its dividends have been reliable and growing, supported by a sustainable payout ratio of 77.2% from earnings and a low cash payout ratio of 36.2%. Recent revenue growth was modest at £441.1 million, with like-for-like revenue up just 0.5%, but the company affirmed an annual dividend of 8.3 pence per share in July's AGM.