3 Top Dividend Stocks In UK Yielding Up To 6.4%

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The United Kingdom's FTSE 100 index has recently faced downward pressure, influenced by weak trade data from China and sluggish global economic cues. Despite these challenges, dividend stocks remain an attractive option for investors seeking steady income in volatile markets. A good dividend stock typically offers a reliable payout history and resilience in fluctuating market conditions, making them particularly appealing amid the current economic uncertainties.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

6.10%

★★★★★★

4imprint Group (LSE:FOUR)

3.04%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

7.50%

★★★★★☆

Man Group (LSE:EMG)

5.50%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.63%

★★★★★☆

Plus500 (LSE:PLUS)

5.74%

★★★★★☆

DCC (LSE:DCC)

3.67%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.23%

★★★★★☆

NWF Group (AIM:NWF)

4.84%

★★★★★☆

Grafton Group (LSE:GFTU)

3.40%

★★★★★☆

Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.

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

BP

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

Overview: BP p.l.c. is a company that provides carbon products and services, with a market cap of £69.76 billion.

Operations: BP p.l.c.'s revenue segments include Customers & Products ($164.28 billion), Gas & Low Carbon Energy ($36.47 billion), and Oil Production & Operations ($26.07 billion).

Dividend Yield: 5.6%

BP's dividend payments are well-covered by both earnings (68.1% payout ratio) and cash flows (31.4% cash payout ratio), making them sustainable despite a volatile track record over the past decade. Recent results show mixed production figures, with some increases in oil production but overall lower gas & low carbon energy outputs compared to last year. BP announced an interim dividend of $0.08 per share, reflecting its commitment to returning value to shareholders amidst fluctuating earnings and strategic buybacks totaling £748 million recently completed.

LSE:BP. Dividend History as at Aug 2024

Dunelm Group

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

Overview: Dunelm Group plc is a UK-based retailer specializing in homewares with a market cap of £2.53 billion.

Operations: Dunelm Group plc generates £1.68 billion in revenue from the retail of homewares in the United Kingdom.

Dividend Yield: 6.2%

Dunelm Group's dividend payments have been volatile over the past decade, though they are well-covered by earnings (58.1% payout ratio) and cash flows (74.8% cash payout ratio). Despite a recent sales report showing £399 million for Q4 and £1.71 billion for the year, board changes may impact future stability. Trading at 23.1% below its estimated fair value, Dunelm's dividend yield of 6.23% is among the top 25% in the UK market but lacks consistency in growth history.