Top 3 Dividend Stocks To Watch On The UK Exchange

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The London markets have faced recent turbulence, with the FTSE 100 closing lower after weak trade data from China signaled ongoing economic struggles. Despite these challenges, dividend stocks remain a compelling option for investors seeking stable returns amidst market volatility. A good dividend stock typically offers consistent payouts and has a strong financial foundation, making it an attractive choice in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.90%

★★★★★★

OSB Group (LSE:OSB)

8.31%

★★★★★☆

4imprint Group (LSE:FOUR)

3.30%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

7.23%

★★★★★☆

Man Group (LSE:EMG)

5.82%

★★★★★☆

Plus500 (LSE:PLUS)

5.79%

★★★★★☆

DCC (LSE:DCC)

3.76%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.38%

★★★★★☆

Grafton Group (LSE:GFTU)

3.48%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.37%

★★★★★☆

Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Next 15 Group

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

Overview: Next 15 Group plc, with a market cap of £488.83 million, provides communications services across the United Kingdom, Europe, Africa, the United States and the Asia Pacific through its subsidiaries.

Operations: Next 15 Group plc generates revenue through four main segments: Customer Engage (£346.47 million), Customer Insight (£76.53 million), Customer Delivery (£157.91 million), and Business Transformation (£153.76 million).

Dividend Yield: 3.1%

Next 15 Group's dividend payments have been volatile over the past decade, with significant drops exceeding 20% annually at times. Despite this, dividends are well-covered by earnings (payout ratio: 28.8%) and cash flows (cash payout ratio: 21.1%). The company experienced an extraordinary earnings growth of £31.60 billion last year due to large one-off items, but its share price has been highly volatile recently. Currently trading at a substantial discount to its estimated fair value, NFG offers a relatively low dividend yield of 3.12%, below the UK market's top quartile of dividend payers.

AIM:NFG Dividend History as at Sep 2024
AIM:NFG Dividend History as at Sep 2024

NWF Group

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

Overview: NWF Group plc, with a market cap of £80.60 million, primarily engages in the sale and distribution of fuel oils in the United Kingdom through its subsidiaries.

Operations: NWF Group plc generates revenue from three main segments: Food (£77.80 million), Feeds (£195.10 million), and Fuels (£684.90 million).