3 Top UK Dividend Stocks Yielding Up To 5.6%
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The UK market has been under pressure recently, with the FTSE 100 closing lower due to weak trade data from China and declining commodity prices affecting key sectors. Despite these challenges, dividend stocks remain an attractive option for investors seeking steady income in uncertain times. Here are three top UK dividend stocks yielding up to 5.6% that could offer stability and reliable returns amidst the current market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.75% | ★★★★★★ |
| Impax Asset Management Group (AIM:IPX) | 7.01% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.50% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.04% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.01% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.29% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.58% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.71% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.84% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.41% | ★★★★★☆ |
Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Halfords Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Halfords Group plc, with a market cap of ￡309.29 million, operates in the United Kingdom offering motoring and cycling products and services through its subsidiaries.
Operations: Halfords Group plc generates revenue from two main segments: ￡997.10 million from Retail and ￡699.40 million from Autocentres.
Dividend Yield: 5.6%
Halfords Group reported a full-year sales increase to ￡1.70 billion, but net income fell to ￡16.9 million from ￡28.1 million the previous year. Despite this, its dividends are well-covered by earnings (payout ratio: 60%) and cash flows (cash payout ratio: 14.3%). However, the dividend track record is unstable and has declined over the past decade, though the current yield of 5.65% remains attractive compared to peers in the UK market.
IG Group Holdings
Simply Wall St Dividend Rating: ★★★★★☆
Overview: IG Group Holdings plc is a fintech company that operates in the online trading business globally, with a market cap of ￡3.57 billion.
Operations: IG Group Holdings plc generates revenue primarily from its brokerage segment, which accounted for ￡954.50 million.
Dividend Yield: 4.7%
IG Group Holdings announced a final dividend of 32.64 pence per share, bringing the total for the year to 46.2 pence, a slight increase from last year. The company's dividends are well-covered by earnings (payout ratio: 58.2%) and cash flows (cash payout ratio: 44.5%). Despite a decrease in net income to ￡307.7 million, IGG continues its share repurchase program with ￡150 million allocated for buybacks through January 2025, indicating strong capital management practices.