Hargreaves Services And 2 Top UK Dividend Stocks For Your Portfolio
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The United Kingdom market has remained flat over the past week but has shown a 7.5% increase over the past year, with earnings projected to grow by 14% annually. In this context, dividend stocks that offer consistent payouts and potential for capital appreciation can be appealing options for investors seeking stability and income in their portfolios.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.71% | ★★★★★★ |
| OSB Group (LSE:OSB) | 8.43% | ★★★★★☆ |
| Impax Asset Management Group (AIM:IPX) | 7.08% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.03% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 6.02% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.07% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.54% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 5.18% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.71% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.51% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Hargreaves Services
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Hargreaves Services Plc offers environmental and industrial services across the United Kingdom, Europe, Hong Kong, and internationally, with a market cap of ￡179.97 million.
Operations: Hargreaves Services Plc generates revenue primarily from its Services segment, which accounts for ￡206.86 million, complemented by contributions from Hargreaves Land at ￡7.04 million.
Dividend Yield: 6.6%
Hargreaves Services has announced a significant increase in its full-year dividend to 36.0 pence, up from 21.0 pence last year, despite net income declining to ￡12.28 million from ￡27.92 million. While the dividend yield of 6.59% is attractive and among the top quartile in the UK market, concerns exist over sustainability due to high payout ratios and volatile past payments. The company's dividends are covered by cash flows but not by earnings, indicating potential risks for investors prioritizing stability.
Oxford Metrics
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Oxford Metrics plc is a smart sensing and software company operating in the United Kingdom and internationally, with a market cap of ￡80.18 million.
Operations: Oxford Metrics plc generates revenue through its Vicon segment, with ￡23.62 million from the UK and ￡21.09 million from the USA.
Dividend Yield: 4.5%
Oxford Metrics has shown stable and reliable dividend growth over the past decade, though its current 4.51% yield is below the top UK payers. The dividend is not well covered by free cash flows due to a high cash payout ratio of 739.2%, despite being covered by earnings with a payout ratio of 70.7%. Recent board changes include Dr Ian Wilcock's appointment, potentially bringing strategic growth expertise to the company amidst ongoing financial guidance projecting revenues up to ￡42 million for FY2024.