Top 3 UK Dividend Stocks For Your Portfolio

As the United Kingdom's FTSE 100 index faces headwinds due to weak trade data from China and faltering commodity prices, investors are keenly observing how these global economic shifts impact their portfolios. In such uncertain times, dividend stocks can offer a measure of stability and income, making them an attractive option for those looking to navigate market volatility while benefiting from regular payouts.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Treatt (LSE:TET)	4.16%	★★★★★☆
Seplat Energy (LSE:SEPL)	7.16%	★★★★★☆
RS Group (LSE:RS1)	3.58%	★★★★★☆
MONY Group (LSE:MONY)	6.83%	★★★★★★
Keller Group (LSE:KLR)	3.10%	★★★★★☆
Impax Asset Management Group (AIM:IPX)	7.98%	★★★★★☆
IG Group Holdings (LSE:IGG)	3.60%	★★★★★☆
Hargreaves Services (AIM:HSP)	5.64%	★★★★★☆
Begbies Traynor Group (AIM:BEG)	3.84%	★★★★★☆
4imprint Group (LSE:FOUR)	4.55%	★★★★★☆

Click here to see the full list of 48 stocks from our Top UK Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Bunzl (LSE:BNZL)

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

Overview: Bunzl plc is a distribution and services company operating in North America, Continental Europe, the United Kingdom, Ireland, and internationally with a market cap of £6.70 billion.

Operations: Bunzl plc generates revenue primarily from its Packaging & Containers segment, amounting to £11.82 billion.

Dividend Yield: 3.6%

Bunzl's dividend payments have been volatile over the past decade, with occasional significant drops. Despite this, dividends have increased overall during this period and are well-covered by earnings and cash flows, with a payout ratio of 50.5% and a cash payout ratio of 29%. The company's dividend yield is lower than top-tier UK payers at 3.56%. Recent guidance suggests moderate revenue growth driven by acquisitions, though financial positioning includes high debt levels.

• Unlock comprehensive insights into our analysis of Bunzl stock in this dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Bunzl shares in the market.

IG Group Holdings (LSE:IGG)

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

Overview: IG Group Holdings plc is a fintech company that operates in the online trading sector across various regions including the UK, Ireland, Asia-Pacific, Middle East, US, Europe, and emerging markets with a market cap of £4.47 billion.

Operations: IG Group Holdings plc generates its revenue primarily from its brokerage segment, which amounts to £1.05 billion.

Dividend Yield: 3.6%

IG Group Holdings has maintained stable and growing dividends over the last decade, supported by a low payout ratio of 44.4% and a cash payout ratio of 33.1%, ensuring coverage by both earnings and cash flows. The dividend yield stands at 3.6%, which is below the top UK dividend payers but reflects reliability with minimal volatility. Recent guidance indicates expected revenue growth to £1.1 billion for 2025, following a fiscal year-end change aligning with market practices.

• Dive into the specifics of IG Group Holdings here with our thorough dividend report.
• Our expertly prepared valuation report IG Group Holdings implies its share price may be lower than expected.

Lancashire Holdings (LSE:LRE)

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

Overview: Lancashire Holdings Limited, with a market cap of £1.52 billion, offers specialty insurance and reinsurance products through its operations in London, Bermuda, and Australia.

Operations: Lancashire Holdings Limited generates revenue from its Insurance Segment, amounting to $173.20 million, and its Reinsurance Segment, totaling $454.20 million.

Dividend Yield: 14.4%

Lancashire Holdings offers a high dividend yield of 14.38%, placing it among the top UK dividend payers. However, its dividend history is marked by volatility and declines over the past decade. Despite this, dividends are well-covered by earnings with a low payout ratio of 23.6% and cash flows at a 75.3% cash payout ratio, suggesting sustainability from current operations. Recent events include an Analyst/Investor Day and a special ex-dividend date on November 5, 2025.

• Click here and access our complete dividend analysis report to understand the dynamics of Lancashire Holdings.
• Our comprehensive valuation report raises the possibility that Lancashire Holdings is priced lower than what may be justified by its financials.

Where To Now?

• Dive into all 48 of the Top UK Dividend Stocks we have identified here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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