The UK market has been experiencing some turbulence, with the FTSE 100 index recently closing lower due to weak trade data from China, highlighting ongoing global economic challenges. In this environment, dividend stocks can offer investors a measure of stability and income, making them an attractive option for those navigating uncertain markets.
|
Name |
Dividend Yield |
Dividend Rating |
|
WPP (LSE:WPP) |
6.34% |
★★★★★★ |
|
Man Group (LSE:EMG) |
6.32% |
★★★★★☆ |
|
Keller Group (LSE:KLR) |
3.57% |
★★★★★☆ |
|
Dunelm Group (LSE:DNLM) |
8.64% |
★★★★★☆ |
|
4imprint Group (LSE:FOUR) |
4.67% |
★★★★★☆ |
|
Grafton Group (LSE:GFTU) |
4.23% |
★★★★★☆ |
|
Big Yellow Group (LSE:BYG) |
4.77% |
★★★★★☆ |
|
NWF Group (AIM:NWF) |
4.74% |
★★★★★☆ |
|
James Latham (AIM:LTHM) |
7.59% |
★★★★★☆ |
|
OSB Group (LSE:OSB) |
7.30% |
★★★★★☆ |
Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Clarkson PLC offers integrated shipping services globally and has a market cap of approximately £1.11 billion.
Operations: Clarkson PLC’s revenue is derived from four main segments: Broking (£529.30 million), Support (£65 million), Research (£24.50 million), and Financial (£42.60 million).
Dividend Yield: 3%
Clarkson’s dividend payments, while covered by earnings (39.4% payout ratio) and cash flows (31.2% cash payout ratio), have been historically volatile and unreliable over the past decade despite recent increases. The company trades at 50.3% below its estimated fair value, suggesting potential for capital appreciation, though share price volatility remains a concern. Recent earnings showed modest growth with net income rising to £84.9 million from £83.8 million, alongside a proposed dividend increase to 77 pence per share pending approval.
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 approximately £5.25 billion.
Operations: DCC plc generates its revenue from three primary segments: DCC Energy (£13.91 billion), DCC Healthcare (£853.99 million), and DCC Technology (£4.80 billion).
Dividend Yield: 3.8%
DCC’s dividends are well-supported by earnings and cash flows, with payout ratios of 59.9% and 49.5%, respectively, ensuring sustainability. The dividend yield stands at 3.76%, lower than the top UK payers but reliable over a decade with consistent growth. Trading below estimated fair value by 35.3% offers potential for capital gains, supported by anticipated profit growth and strategic acquisitions in the energy sector as per recent guidance for March 2025’s fiscal year end.