3 UK Dividend Stocks Offering Up To 6.5% Yield

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As the FTSE 100 shows signs of extending its gains amid a dynamic backdrop of regulatory discussions and broader market movements, investors are closely monitoring the landscape for stable investment opportunities. In this context, dividend stocks emerge as particularly appealing options for those seeking regular income streams in a fluctuating market environment.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.92%

★★★★★★

Impax Asset Management Group (AIM:IPX)

6.90%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.05%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.69%

★★★★★☆

Plus500 (LSE:PLUS)

5.93%

★★★★★☆

DCC (LSE:DCC)

3.57%

★★★★★☆

Rio Tinto Group (LSE:RIO)

6.39%

★★★★★☆

NWF Group (AIM:NWF)

4.56%

★★★★★☆

Grafton Group (LSE:GFTU)

3.55%

★★★★★☆

Hargreaves Services (AIM:HSP)

6.49%

★★★★★☆

Click here to see the full list of 54 stocks from our Top UK Dividend Stocks screener.

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

NWF Group

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

Overview: NWF Group plc operates primarily in the sale and distribution of fuel oils across the United Kingdom, with a market capitalization of approximately £84.54 million.

Operations: NWF Group plc generates its revenue through three key segments: Food (£74.30 million), Feeds (£210.40 million), and Fuels (£707.20 million).

Dividend Yield: 4.6%

NWF Group maintains a solid dividend profile with a cash payout ratio of 10.3% and an earnings payout ratio of 29.6%, ensuring dividends are well-covered by both cash flows and earnings. Despite its low dividend yield of 4.56% compared to the UK market's top quartile, the company has shown consistency in its dividend payments over the past decade, with increases noted annually. However, it faces challenges with forecasted earnings decline averaging 10.1% annually over the next three years while expecting modest revenue growth at 3.89% per year.

AIM:NWF Dividend History as at Jul 2024
AIM:NWF Dividend History as at Jul 2024

Castings

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

Overview: Castings P.L.C. is a company based in the United Kingdom that specializes in iron casting and machining, operating across Europe, North and South America, with a market cap of approximately £167.31 million.

Operations: Castings P.L.C. generates revenue primarily through its Foundry Operations and Machining Operations, which collectively brought in £288.62 million.

Dividend Yield: 6.6%

Castings P.L.C. has increased its total annual dividend to £0.1832 per share, up 5.6% from last year, and declared a special dividend of £0.07 per share due to a strong cash position. Despite this growth, dividends are not fully covered by free cash flows or earnings, with a high cash payout ratio of 100.4%. The company's dividends have been reliable over the past decade but face sustainability challenges amid forecasted earnings declines of 5.8% annually over the next three years.