3 UK Dividend Stocks To Consider With Up To 6.3% Yield

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The United Kingdom's FTSE 100 index recently experienced a downturn, influenced by weak trade data from China that highlighted ongoing challenges in global economic recovery. As investors navigate these uncertain times, dividend stocks can offer potential stability and income, making them an attractive option for those seeking to balance risk with regular returns.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.94%

★★★★★★

Impax Asset Management Group (AIM:IPX)

8.20%

★★★★★☆

4imprint Group (LSE:FOUR)

3.01%

★★★★★☆

OSB Group (LSE:OSB)

9.03%

★★★★★☆

Plus500 (LSE:PLUS)

6.40%

★★★★★☆

Man Group (LSE:EMG)

6.36%

★★★★★☆

DCC (LSE:DCC)

4.03%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.88%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.02%

★★★★★☆

Grafton Group (LSE:GFTU)

3.68%

★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

James Halstead

Simply Wall St Dividend Rating: ★★★★★☆

Overview: James Halstead plc manufactures and supplies flooring products for both commercial and domestic uses across the United Kingdom, Europe, Scandinavia, Australasia, Asia, and internationally with a market cap of £833.57 million.

Operations: James Halstead plc generates revenue of £274.88 million from the manufacture and distribution of flooring products across various international markets.

Dividend Yield: 4.2%

James Halstead has proposed a record final dividend of 6.0 pence for 2024, marking its 49th consecutive year of increases, with total annual dividends reaching 8.5 pence. Despite a slight decline in sales to £274.88 million and stable net income at £41.52 million, the company's dividend remains covered by cash flows (77% payout) and earnings (85.3% payout). The yield is relatively low at 4.25%, but dividends have been stable and growing over the past decade.

AIM:JHD Dividend History as at Nov 2024
AIM:JHD Dividend History as at Nov 2024

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 £3.24 billion.

Operations: IG Group Holdings plc generates revenue of £954.50 million from its brokerage segment.

Dividend Yield: 5.1%

IG Group Holdings maintains a sustainable dividend with a payout ratio of 58.2% and cash payout ratio of 43.3%, indicating strong coverage by both earnings and cash flows. The dividend has been stable and growing over the past decade, although its yield of 5.06% is below the top quartile in the UK market. Recent executive changes include Clifford Abrahams joining as CFO, potentially strengthening financial oversight as he brings extensive experience from major financial institutions.