As the FTSE 100 index in the United Kingdom encounters challenges from weak global cues and disappointing trade data from China, investors are increasingly prioritizing stability in the face of market volatility. Amid these fluctuating conditions, dividend stocks are emerging as a popular choice, providing a reliable income stream for those looking to balance risk while pursuing steady returns.
A selection of UK stocks with promising dividend yields includes:
- Treatt (LSE:TET): Yielding 3.88%, it has earned a five-star dividend rating.
- Seplat Energy (LSE:SEPL): This energy company boasts a robust yield of 7.89% and also carries a five-star rating.
- RS Group (LSE:RS1): With a yield of 3.83% and a five-star rating, it remains a solid choice for dividend investors.
- OSB Group (LSE:OSB): Offering a yield of 5.87%, it is rated five stars for its dividend reliability.
- MONY Group (LSE:MONY): This company has gained attention with a 6.63% yield and a six-star rating.
- Keller Group (LSE:KLR): Yielding 3.18%, it has also received a five-star rating for its dividend potential.
- IG Group Holdings (LSE:IGG): With a yield of 4.13%, this stock is rated five stars.
- Hargreaves Services (AIM:HSP): Yielding 5.69%, it has earned a five-star rating.
- Halyk Bank of Kazakhstan (LSE:HSBK): Offering a dividend yield of 6.51% with a five-star rating.
- 4imprint Group (LSE:FOUR): This stock features a 4.71% yield and is rated five stars.
For investors seeking further options, a comprehensive list of 48 stocks is available through the Top UK Dividend Stocks screener.
Among the stocks evaluated, Multitude AG, with a market cap of €131.48 million, provides digital lending and online banking services. It holds a dividend yield of 3.9%, and its payments are well-supported by a low payout ratio of 23.5% and solid cash flows at 5.1%. Despite a historically volatile dividend track record, Multitude has seen increases over the past decade. Recent projections suggest potential net profits of €30 million by 2026, reinforcing the likelihood of continued dividend stability.
Another notable mention is Foresight Group Holdings Limited, which operates in multiple countries and has a market cap of £467 million. It has a dividend yield of 5.9%, positioning it among the upper echelon of UK dividends. While its dividend history spans less than a decade, it has maintained stable payouts with an earnings payout ratio of 83.8% and cash payout ratio of 66.2%. The company has encountered 25.8% earnings growth recently, suggesting promising futures even though dividends have only been paid for four years.
Seplat Energy Plc, a significant player in oil and gas across several jurisdictions, boasts a market capitalization of £1.49 billion and offers a dividend yield of 7.9%. Its payout ratio stands at 50.8%, with strong coverage from both earnings and cash flows. Although dividends have been volatile historically, recent improvements include both interim and special dividends for Q3 2025. Nevertheless, challenges remain ahead according to future forecasts.
While these analyses provide valuable insights into potential dividend stocks, they should be regarded as general commentary based on historical data and forecasts. Investors are advised to consider their unique financial situations and seek tailored investment advice.
