3 UK Dividend Stocks With Up To 8.3% Yield To Enhance Your Portfolio
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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 impact on global markets. In such volatile conditions, dividend stocks can offer a measure of stability and income potential, making them an appealing option for investors looking to enhance their portfolios amidst the current economic uncertainties.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.97% | ★★★★★★ |
| Impax Asset Management Group (AIM:IPX) | 7.54% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.06% | ★★★★★☆ |
| OSB Group (LSE:OSB) | 8.72% | ★★★★★☆ |
| Man Group (LSE:EMG) | 6.25% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.66% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 6.21% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.89% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.76% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.62% | ★★★★★☆ |
Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Burberry Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Burberry Group plc, along with its subsidiaries, is engaged in the manufacturing, retailing, and wholesaling of luxury goods under the Burberry brand with a market capitalization of approximately ￡2.80 billion.
Operations: Burberry Group plc generates its revenue primarily from Retail/Wholesale activities amounting to ￡2.91 billion and Licensing which contributes ￡63 million.
Dividend Yield: 7.8%
Burberry Group offers a high dividend yield of 7.77%, placing it in the top 25% of UK dividend payers, with dividends covered by earnings (payout ratio: 82.5%) and cash flows (cash payout ratio: 73%). Despite this, its dividend history is volatile and unreliable, having experienced significant fluctuations over the past decade. Recently, Burberry was removed from the FTSE 100 Index and added to the FTSE 250 Index.
Castings
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Castings P.L.C. is involved in iron casting and machining operations across several regions, including the UK, Europe, and the Americas, with a market cap of ￡132.11 million.
Operations: Castings P.L.C. generates its revenue primarily from Foundry Operations (￡250.98 million) and Machining Operations (￡37.65 million).
Dividend Yield: 8.3%
Castings PLC offers a dividend yield of 8.33%, ranking in the top 25% of UK dividend payers, with dividends well covered by earnings (payout ratio: 47.6%) but not by cash flows (cash payout ratio: 100.4%). The company's dividends have been stable and reliable over the past decade, though sustainability is questioned due to insufficient free cash flow coverage. Recent board changes include Stephen Harrison's appointment as an independent Non-Executive Director.