The United Kingdom stock market has shown positive momentum, rising 2.7% in the past week and achieving a 5.2% increase over the last year, with earnings expected to grow by 13% annually. In this buoyant environment, identifying dividend stocks that offer consistent payouts can be particularly appealing for investors seeking both stability and growth potential.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 53 stocks from our Top Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Vertu Motors

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

Overview: Vertu Motors plc is an automotive retailer in the United Kingdom, with a market capitalization of approximately ￡248.91 million.

Operations: Vertu Motors plc generates its revenue primarily from the retail sale of gasoline and automobiles, totaling approximately ￡4.44 billion.

Dividend Yield: 3.1%

Vertu Motors has shown some resilience in its dividend strategy, maintaining a payout ratio of 29.7% and a cash payout ratio of 21%, suggesting dividends are well-covered by both earnings and cash flow. Despite this, the company's dividend yield at 3.08% remains below the top UK market performers. Additionally, while Vertu's price-to-earnings ratio is attractive at 9.4x against the UK market average, its net profit margin has halved to 0.6% year-over-year and recent financial data is outdated, posing potential risks for sustained dividend growth given an unstable track record over the past decade.

• Click to explore a detailed breakdown of our findings in Vertu Motors' dividend report.

• Our expertly prepared valuation report Vertu Motors implies its share price may be lower than expected.

DCC

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

Overview: DCC plc is a global company specializing in sales, marketing, and support services with a market capitalization of approximately ￡5.71 billion.

Operations: DCC plc generates revenue through three primary segments: DCC Energy (￡15.10 billion), DCC Healthcare (￡0.86 billion), and DCC Technology (￡5.02 billion).

Dividend Yield: 3.3%

DCC's dividend sustainability is supported by a 57% earnings payout ratio and a 45.2% cash payout ratio, indicating that dividends are well-covered by both earnings and cash flows. Despite a lower yield of 3.29% compared to the top UK dividend payers, DCC has consistently paid reliable dividends over the last decade. The stock is currently trading at 40.5% below its estimated fair value, suggesting potential for price appreciation, with analysts predicting an average price increase of 20.8%.