Top UK Dividend Stocks To Consider In January 2025
AInvestThursday, Jan 2, 2025 3:33 am ET
2min read
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As we step into January 2025, investors are seeking stability and consistent income in the face of global uncertainties. Dividend stocks have long been a reliable source of income for investors, and the UK market is home to some of the world's most attractive dividend-paying companies. In this article, we'll explore the top UK dividend stocks to consider in January 2025, focusing on their dividend yields, growth, and sector performance.



1. Pets at Home Group (LSE:PETS) - Dividend Yield: 6.23%
- Pets at Home Group is a leading UK pet care retailer with a strong dividend track record. Its 6.23% dividend yield is one of the highest in the FTSE 100, reflecting the company's robust cash flows and earnings growth. The pet care sector has shown resilience in recent years, and Pets at Home Group's dividend growth has been impressive, with a compound annual growth rate (CAGR) of over 10% since 2014.

2. Keller Group (LSE:KLR) - Dividend Yield: 3.30%
- Keller Group is a global leader in geotechnical engineering, providing foundation solutions to the construction and infrastructure sectors. Its 3.30% dividend yield is supported by a stable payout ratio and consistent earnings growth. The construction and materials sector has faced headwinds in recent years, but Keller Group's strong market position and global diversification have enabled it to maintain a steady dividend payout.

3. 4imprint Group (LSE:FOUR) - Dividend Yield: 3.41%
- 4imprint Group is a leading provider of promotional products and services, with a strong presence in the UK and Europe. Its 3.41% dividend yield is backed by a stable payout ratio and consistent earnings growth. The promotional products sector has shown resilience in recent years, and 4imprint Group's dividend growth has been steady, with a CAGR of around 7% since 2016.

4. OSB Group (LSE:OSB) - Dividend Yield: 8.03%
- OSB Group is a UK-based bank with a strong focus on residential mortgages and savings. Its 8.03% dividend yield is one of the highest in the FTSE 100, reflecting the company's strong earnings growth and cash flow generation. The banking sector has faced challenges in recent years, but OSB Group's dividend growth has been impressive, with a CAGR of over 15% since 2017.

5. Man Group (LSE:EMG) - Dividend Yield: 5.96%
- Man Group is a leading global alternative investment management firm, with a strong track record in generating consistent returns for investors. Its 5.96% dividend yield is supported by a stable payout ratio and consistent earnings growth. The alternative investments sector has seen strong demand in recent years, and Man Group's dividend growth has been impressive, with a CAGR of over 6% since 2018.

6. Big Yellow Group (LSE:BYG) - Dividend Yield: 4.71%
- Big Yellow Group is a leading UK self-storage provider, with a strong focus on delivering value and convenience to customers. Its 4.71% dividend yield is backed by a stable payout ratio and consistent earnings growth. The self-storage sector has shown resilience in recent years, and Big Yellow Group's dividend growth has been steady, with a CAGR of around 5% since 2017.

7. DCC (LSE:DCC) - Dividend Yield: 3.89%
- DCC is a global leader in the design, manufacture, and distribution of a wide range of products and services. Its 3.89% dividend yield is supported by a stable payout ratio and consistent earnings growth. The industrials sector has faced challenges in recent years, but DCC's strong market position and global diversification have enabled it to maintain a steady dividend payout.

8. Dunelm Group (LSE:DNLM) - Dividend Yield: 7.35%
- Dunelm Group is a leading UK homeware retailer, with a strong focus on delivering quality products and exceptional customer service. Its 7.35% dividend yield is one of the highest in the FTSE 250, reflecting the company's strong earnings growth and cash flow generation. The retail sector has faced challenges in recent years, but Dunelm Group's dividend growth has been impressive, with a CAGR of over 10% since 2017.



In conclusion, the top UK dividend stocks listed above offer investors a measure of resilience and consistent income in the face of global uncertainties. Their dividend yields, growth, and sector performance make them attractive options for investors seeking stability and long-term growth. By diversifying your portfolio with these dividend stocks, you can help ensure a steady income stream and protect your investments from market volatility.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.