Top 3 UK Dividend Stocks To Consider
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The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China and its struggling economic recovery. Despite these challenges, dividend stocks remain an attractive option for investors seeking steady income streams.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.99% | ★★★★★★ |
| 4imprint Group (LSE:FOUR) | 3.24% | ★★★★★☆ |
| Impax Asset Management Group (AIM:IPX) | 7.49% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.95% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.48% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.29% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.82% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.83% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 5.14% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.53% | ★★★★★☆ |
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Arbuthnot Banking Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Arbuthnot Banking Group PLC, with a market cap of ￡152.23 million, offers private and commercial banking products and services in the United Kingdom through its subsidiaries.
Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (￡12.32 million), Asset Alliance Group (￡14.81 million), Renaissance Asset Finance (￡9.42 million), and Arbuthnot Commercial Asset Based Lending (￡16.03 million).
Dividend Yield: 5%
Arbuthnot Banking Group's dividend payments have increased over the past decade but have been volatile, with drops exceeding 20% annually. The company's current payout ratio of 24.9% suggests dividends are well covered by earnings and forecasted to remain sustainable with a 27.9% payout ratio in three years. However, ARBB's net income for H1 2024 declined to ￡15.44 million from ￡19.97 million in H1 2023, reflecting potential challenges ahead despite recent strategic board appointments and office relocations.
Drax Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Drax Group plc, with a market cap of ￡2.50 billion, operates in the United Kingdom focusing on renewable power generation through its subsidiaries.
Operations: Drax Group plc's revenue segments include ￡4.38 billion from Customers, ￡5.99 billion from Generation, and ￡878.40 million from Pellet Production.
Dividend Yield: 3.7%
Drax Group's dividend payments have been volatile over the past decade but are well covered by earnings (payout ratio: 14.4%) and cash flows (cash payout ratio: 23.3%). Trading at a significant discount to its estimated fair value, Drax offers good relative value compared to peers. Recent refinancing of a ￡450 million revolving credit facility and a ￡50 million term loan enhances liquidity, while the announced ￡300 million share repurchase program signals confidence in future prospects.