Top 3 UK Dividend Stocks To Consider

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As the UK market grapples with global economic uncertainties, such as China's sluggish recovery impacting the FTSE 100, investors are keenly seeking stable avenues for returns. In this environment, dividend stocks can offer a reliable income stream by providing regular payouts, making them an attractive option for those looking to navigate these turbulent times.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.73%

★★★★★★

4imprint Group (LSE:FOUR)

3.02%

★★★★★☆

OSB Group (LSE:OSB)

8.38%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

6.75%

★★★★★☆

Man Group (LSE:EMG)

6.05%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.47%

★★★★★☆

Plus500 (LSE:PLUS)

6.02%

★★★★★☆

DCC (LSE:DCC)

3.75%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.64%

★★★★★☆

Grafton Group (LSE:GFTU)

3.43%

★★★★★☆

Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Next 15 Group

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

Overview: Next 15 Group plc, along with its subsidiaries, offers communications services across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific with a market cap of £433.13 million.

Operations: Next 15 Group plc generates its revenue primarily through providing communications services across various regions, including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.

Dividend Yield: 3.5%

Next 15 Group's dividend payments have been unreliable over the past decade, marked by volatility and a low yield of 3.52% compared to top UK payers. Despite this, dividends are well covered by earnings and cash flows with payout ratios of 25.2% and 23.3%, respectively. The company reported improved net income for H1 2025 at £22.14 million, but its high debt level and forecasted earnings decline pose challenges for sustainable dividend growth.

AIM:NFG Dividend History as at Oct 2024
AIM:NFG Dividend History as at Oct 2024

DCC

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

Overview: DCC plc is involved in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of £5.19 billion.

Operations: DCC plc generates its revenue through three primary segments: DCC Energy (£14.22 billion), DCC Healthcare (£859.38 million), and DCC Technology (£4.77 billion).

Dividend Yield: 3.7%

DCC offers a stable dividend yield of 3.75%, which is lower than the top UK payers but consistently reliable over the past decade. Dividends are well covered, with payout ratios of 59.5% from earnings and 39.5% from cash flows, indicating sustainability. The stock trades at good value, significantly below its estimated fair value, and analysts expect a price increase of 34.5%. Earnings growth is forecasted at 9.55% annually, supporting future dividend stability.