UK Dividend Stocks to Watch Amidst Global Economic Uncertainties

Friday, Aug 8, 2025 2:53 am ET2min read

The article discusses the top UK dividend stocks to watch in August 2025, highlighting 10 stocks with high dividend yields and reliable dividend growth. The top 10 stocks include Treatt, Pets at Home Group, OSB Group, NWF Group, MONY Group, Keller Group, IG Group Holdings, Grafton Group, Dunelm Group, and 4imprint Group. The article also provides a detailed breakdown of each stock's dividend history, payout ratio, and cash payout ratio.

As the FTSE 100 and FTSE 250 indices continue to reflect ongoing challenges, particularly influenced by weak trade data from China, investors in the UK are navigating a market environment marked by global economic uncertainties. In such conditions, dividend stocks often attract attention for their potential to provide steady income streams amidst volatility. The following article discusses the top UK dividend stocks to watch in August 2025, highlighting 10 stocks with high dividend yields and reliable dividend growth.

1. Treatt (LSE: TET)
Treatt offers a reliable dividend yield of 3.97% [3]. The company operates in the chemical sector, focusing on the production and distribution of flavoring and fragrance ingredients. Treatt's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

2. Pets at Home Group (LSE: PETS)
Pets at Home Group provides a dividend yield of 5.81% [3]. The company operates in the pet care sector, offering a range of pet products and services. Pets at Home Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

3. OSB Group (LSE: OSB)
OSB Group offers a dividend yield of 6.01% [3]. The company operates in the food and beverage sector, focusing on the production and distribution of food and drink products. OSB Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

4. NWF Group (AIM: NWF)
NWF Group provides a reliable dividend yield of 4.99% [3]. The company operates in the fuel oil sector, engaging in the sale and distribution of fuel oils. NWF Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%. However, recent earnings have declined, which may impact future payouts.

5. MONY Group (LSE: MONY)
MONY Group offers a dividend yield of 6.19% [3]. The company operates in the financial services sector, focusing on the provision of insurance and investment services. MONY Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

6. Keller Group (LSE: KLR)
Keller Group provides a dividend yield of 3.69% [3]. The company operates in the property sector, focusing on the development and management of commercial properties. Keller Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

7. IG Group Holdings (LSE: IGG)
IG Group Holdings offers a dividend yield of 4.16% [3]. The company operates in the financial services sector, focusing on the provision of trading and investment services. IG Group Holdings' dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

8. Grafton Group (LSE: GFTU)
Grafton Group provides a dividend yield of 4.20% [3]. The company operates in the recruitment and staffing services sector. Grafton Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

9. Dunelm Group (LSE: DNLM)
Dunelm Group offers a dividend yield of 6.59% [3]. The company operates in the home improvement sector, focusing on the production and distribution of home furnishings. Dunelm Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

10. 4imprint Group (LSE: FOUR)
4imprint Group provides a dividend yield of 5.43% [3]. The company operates in the promotional products sector, focusing on the production and distribution of branded merchandise. 4imprint Group's dividends are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%.

These top UK dividend stocks offer attractive yields and a history of reliable dividend growth. However, investors should conduct thorough due diligence, considering each company's specific risks and potential for future dividend growth.

References:
[1] https://uk.finance.yahoo.com/news/analysts-think-5-yielding-dividend-073800800.html
[2] https://www.ainvest.com/news/caretrust-reit-q2-2025-earnings-uk-expansion-blueprint-sustained-growth-healthcare-real-estate-2508/
[3] https://ca.finance.yahoo.com/news/top-uk-dividend-stocks-watch-063136303.html

UK Dividend Stocks to Watch Amidst Global Economic Uncertainties

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