3 UK Dividend Stocks To Consider With Up To 8.3% Yield
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The UK market has recently faced turbulence, with the FTSE 100 closing lower amid weak trade data from China, highlighting global economic uncertainties. Despite these challenges, dividend stocks can offer a stable income stream and potential for long-term growth, making them an attractive option in volatile markets.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.92% | ★★★★★★ |
| 4imprint Group (LSE:FOUR) | 3.34% | ★★★★★☆ |
| Impax Asset Management Group (AIM:IPX) | 7.41% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.89% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.84% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.42% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 5.23% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.79% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.48% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.52% | ★★★★★☆ |
Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Castings
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Castings P.L.C. engages in iron casting and machining activities across the UK, Europe, the Americas, and internationally, with a market cap of ￡131.68 million.
Operations: Castings P.L.C. generates ￡250.98 million from Foundry Operations and ￡37.65 million from Machining Operations.
Dividend Yield: 8.4%
Castings offers a compelling dividend yield at 8.36%, placing it in the top 25% of UK dividend payers. The company's dividends have been stable and growing over the past decade, though they are not well covered by free cash flows, with a high cash payout ratio of 100.4%. Despite this, earnings grew by 21.3% last year, although they are forecasted to decline by an average of 11.5% annually over the next three years.
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Click here to discover the nuances of Castings with our detailed analytical dividend report.
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Our valuation report unveils the possibility Castings' shares may be trading at a discount.
Kingfisher
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Kingfisher plc, with a market cap of ￡5.12 billion, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally through its subsidiaries.
Operations: Kingfisher plc generates ￡12.98 billion in revenue from the supply of home improvement products and services.
Dividend Yield: 4.4%
Kingfisher's dividend payments are covered by earnings (68.2% payout ratio) and cash flows (23.7% cash payout ratio), indicating sustainability. However, the dividend yield of 4.43% is below the UK market's top 25%. Over the past decade, dividends have increased but have been volatile and unreliable at times. The stock trades at a good value with a P/E ratio of 14.8x versus the market's 16.5x, supported by expected annual earnings growth of 11.78%.