Top 3 UK Dividend Stocks To Watch
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The London stock market has recently faced challenges, with the FTSE 100 closing lower due to weak trade data from China and concerns over global economic recovery. Despite these headwinds, dividend stocks remain a compelling option for investors seeking stable income and potential long-term growth. In this article, we will explore three top UK dividend stocks that are worth watching in the current market environment.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.97% | ★★★★★★ |
| 4imprint Group (LSE:FOUR) | 3.07% | ★★★★★☆ |
| Impax Asset Management Group (AIM:IPX) | 7.42% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.63% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.58% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.71% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.70% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.23% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.84% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.31% | ★★★★★☆ |
Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.
We'll examine a selection from our screener results.
M.P. Evans Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: M.P. Evans Group PLC, with a market cap of ￡454.43 million, operates through its subsidiaries to own and develop oil palm plantations in Indonesia and Malaysia.
Operations: M.P. Evans Group PLC generates $307.32 million in revenue from its plantation operations in Indonesia.
Dividend Yield: 4.9%
M.P. Evans Group's dividend payments, covered by earnings (58.7%) and cash flows (64.3%), have grown over the past decade but remain volatile and below the top 25% of UK dividend payers. Recent production results show increased crude palm oil and palm kernel oil output, supporting future profitability. Additionally, a share repurchase program authorized up to ￡2 million worth of shares, potentially enhancing shareholder value through reduced share count and improved earnings per share metrics.
Macfarlane Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Macfarlane Group PLC, with a market cap of ￡187.06 million, designs, manufactures, and distributes protective packaging products to businesses in the United Kingdom and Europe through its subsidiaries.
Operations: Revenue Segments (in millions of ￡): Packaging Distribution: 231.89, Manufacturing Operations: 42.06
Dividend Yield: 3.1%
Macfarlane Group offers a dividend yield of 3.06%, lower than the top UK dividend payers, but its payout ratios are sustainable with earnings coverage at 39% and cash flow coverage at 22.8%. Despite an unstable dividend track record over the past decade, recent increases to 0.96 pence per share suggest potential growth. The stock trades at good value, currently 39% below estimated fair value, and analysts predict a price rise of 27.1%.