Top UK Dividend Stocks To Consider In August 2024
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The UK market has faced challenges recently, with the FTSE 100 closing lower due to weak trade data from China, highlighting ongoing struggles in global economic recovery. Despite these headwinds, dividend stocks remain a popular choice for investors seeking steady income and potential stability amid market volatility. In this article, we will explore three top UK dividend stocks to consider in August 2024.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.68% | ★★★★★★ |
| 4imprint Group (LSE:FOUR) | 3.15% | ★★★★★☆ |
| Impax Asset Management Group (AIM:IPX) | 7.39% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.77% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.62% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.94% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.83% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.76% | ★★★★★☆ |
| Pets at Home Group (LSE:PETS) | 4.42% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.58% | ★★★★★☆ |
Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
City of London Investment Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: City of London Investment Group PLC is a publicly owned investment manager with a market cap of ￡184.80 million.
Operations: City of London Investment Group PLC generates $73.72 million in revenue from its asset management segment.
Dividend Yield: 8.4%
City of London Investment Group offers a high dividend yield of 8.45%, placing it in the top 25% of UK dividend payers. However, its dividend payments have been volatile and are not well covered by earnings, with a payout ratio of 112.5%. The dividends are covered by free cash flow at an 89.6% cash payout ratio, but sustainability remains a concern given the inconsistency and high payout ratios relative to earnings growth.
Morgan Sindall Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Morgan Sindall Group plc, with a market cap of ￡1.37 billion, operates as a construction and regeneration company in the United Kingdom.
Operations: Morgan Sindall Group plc's revenue segments include Fit Out (￡1.24 billion), Construction (￡1.02 billion), Infrastructure (￡989.20 million), Property Services (￡191.80 million), Urban Regeneration (￡148.40 million), and Partnership Housing (￡845.20 million).
Dividend Yield: 3.9%
Morgan Sindall Group's dividend payments have been volatile over the past decade but have shown growth. The company trades at 38.9% below its estimated fair value and reported a significant earnings increase of 93.1% year-on-year. Its dividends are well covered by both earnings (payout ratio: 44.7%) and cash flows (cash payout ratio: 31.8%). Recently, Morgan Sindall announced a 15% increase in its interim dividend to GBP 0.415 per share, reflecting improved financial performance for H1 2024 with net income rising to GBP 52.6 million from GBP 46.3 million a year ago.