Burberry Group Leads Three Key Dividend Stocks In The UK
As global markets exhibit mixed signals with the FTSE 100 showing a subdued performance ahead of key economic events, investors continue to navigate through a landscape marked by cautious optimism and regulatory scrutiny. In such an environment, dividend stocks like Burberry Group offer potential stability and income generation, qualities that are particularly appealing in uncertain times.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 6.13% | ★★★★★★ |
| Impax Asset Management Group (AIM:IPX) | 6.61% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.88% | ★★★★★☆ |
| Epwin Group (AIM:EPWN) | 5.65% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.86% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.93% | ★★★★★☆ |
| Rio Tinto Group (LSE:RIO) | 6.32% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.77% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.52% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 6.57% | ★★★★★☆ |
Click here to see the full list of 55 stocks from our Top Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Burberry Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Burberry Group plc operates in the luxury goods sector, manufacturing, retailing, and wholesaling products under the Burberry brand, with a market capitalization of approximately ￡3.20 billion.
Operations: Burberry Group's revenue is primarily generated from its Retail/Wholesale segment, which brought in ￡2.91 billion, complemented by a smaller Licensing segment that contributed ￡63 million.
Dividend Yield: 6.8%
Burberry Group's dividends, with a 6.79% yield, rank in the top 25% of UK dividend payers. Despite a track record of volatile and unreliable dividends over the past decade, recent financials show both earnings and cash flows currently support its dividend payments with payout ratios at 82.5% and 73%, respectively. However, profit margins have declined from last year's 15.8% to 9.1%. The company recently proposed a reduced final dividend of ￡0.427 per share compared to ￡0.445 last year, reflecting some challenges in maintaining previous payout levels amidst fluctuating earnings, evidenced by a significant drop in net income from ￡490 million to ￡270 million year-over-year.
Morgan Sindall Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Morgan Sindall Group plc is a UK-based construction and regeneration company with a market capitalization of approximately ￡1.24 billion.