The UK market has recently faced challenges, with the FTSE 100 index closing lower due to weak trade data from China and concerns about global economic recovery. Despite these headwinds, investors can still find opportunities in dividend stocks that offer stable returns and attractive yields. In this article, we will explore three UK dividend stocks that stand out for their robust yield potential of up to 8.6%, making them compelling options in the current market environment.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Epwin Group

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

Overview: Epwin Group Plc manufactures and sells building products in the United Kingdom, rest of Europe, and internationally, with a market cap of ￡126.29 million.

Operations: Epwin Group Plc's revenue segments include ￡250.50 million from Extrusion and Moulding and ￡135.20 million from Fabrication and Distribution.

Dividend Yield: 5.3%

Epwin Group's dividend yield of 5.33% is slightly below the top 25% of UK dividend payers, and its dividends have been volatile over the past decade. However, with a cash payout ratio of 23.2% and an earnings payout ratio of 74.9%, its dividends are well-covered by both earnings and cash flows. Recent news highlights a robust balance sheet with low net debt (￡19.5 million) and significant headroom (￡55 million) for strategic acquisitions, supporting future growth potential.

• Click here to discover the nuances of Epwin Group with our detailed analytical dividend report.

• The analysis detailed in our Epwin Group valuation report hints at an deflated share price compared to its estimated value.

Burberry Group

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

Overview: Burberry Group plc, with a market cap of ￡2.52 billion, manufactures, retails, and wholesales luxury goods under the Burberry brand through its subsidiaries.

Operations: Burberry Group plc generates revenue from two primary segments: Licensing (￡63 million) and Retail/Wholesale (￡2.91 billion).

Dividend Yield: 8.7%

Burberry Group's dividend yield of 8.68% is among the top 25% in the UK market, but its dividend payments have been volatile over the past decade. Despite a high payout ratio of 82.5%, dividends are covered by both earnings and cash flows, with a cash payout ratio of 73.4%. Recent executive changes include Joshua Schulman as CEO, bringing extensive luxury retail experience amid challenging financial guidance and declining retail revenue (￡458 million).

• Click to explore a detailed breakdown of our findings in Burberry Group's dividend report.

• Our valuation report here indicates Burberry Group may be undervalued.

Ocean Wilsons Holdings

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

Overview: Ocean Wilsons Holdings Limited, with a market cap of ￡466.79 million, is an investment holding company that provides maritime and logistics services in Brazil.

Operations: Ocean Wilsons Holdings Limited generates $519.35 million in revenue from its maritime services in Brazil.

Dividend Yield: 5%

Ocean Wilsons Holdings offers a stable dividend yield of 4.96%, with payments well-covered by both earnings (48.7% payout ratio) and cash flows (26.6% cash payout ratio). The company has maintained reliable and growing dividends over the past decade, supported by a low Price-to-Earnings ratio of 9.8x compared to the UK market average of 16.8x. Despite some large one-off items affecting financial results, earnings grew by 32.7% last year, indicating robust performance.

• Take a closer look at Ocean Wilsons Holdings' potential here in our dividend report.

• Insights from our recent valuation report point to the potential overvaluation of Ocean Wilsons Holdings shares in the market.

Key Takeaways

• Navigate through the entire inventory of 57 Top UK Dividend Stocks here.

• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.

• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

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• 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.

Companies discussed in this article include AIM:EPWN LSE:BRBY and LSE:OCN.

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