3 UK Dividend Stocks Yielding Up To 6.5%

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In the last week, the United Kingdom market has remained flat, although it has experienced a 7.5% increase over the past year with earnings forecasted to grow by 14% annually. In this context, identifying dividend stocks that offer attractive yields can be a strategic way for investors to potentially benefit from both income and capital appreciation in a steady market environment.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.71%

★★★★★★

4imprint Group (LSE:FOUR)

3.13%

★★★★★☆

OSB Group (LSE:OSB)

8.35%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

7.08%

★★★★★☆

Man Group (LSE:EMG)

5.97%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.52%

★★★★★☆

Plus500 (LSE:PLUS)

6.05%

★★★★★☆

DCC (LSE:DCC)

3.88%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.71%

★★★★★☆

Grafton Group (LSE:GFTU)

3.52%

★★★★★☆

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

Let's take a closer look at a couple of our picks from the screened companies.

Wynnstay Group

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

Overview: Wynnstay Group Plc manufactures and supplies agricultural products in the United Kingdom, with a market cap of £77.61 million.

Operations: Wynnstay Group's revenue is primarily derived from its Agriculture segment, generating £507.75 million, and its Specialist Agricultural Merchanting segment, contributing £147.39 million.

Dividend Yield: 5.1%

Wynnstay Group offers a reliable dividend with a 5.14% yield, although this is slightly below the top UK dividend payers. The dividends are well-covered by both earnings (payout ratio of 67.1%) and cash flows (cash payout ratio of 12.3%). Despite recent shareholder dilution, the company has maintained stable and growing dividends over the past decade. Recent executive changes include Alk Brand as CEO and Rob Thomas as CFO, potentially impacting future strategic direction.

AIM:WYN Dividend History as at Oct 2024
AIM:WYN Dividend History as at Oct 2024

IG Group Holdings

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

Overview: IG Group Holdings plc is a fintech company that operates in the online trading sector globally, with a market cap of £3.33 billion.

Operations: IG Group Holdings plc generates its revenue primarily from its brokerage segment, which amounts to £954.50 million.

Dividend Yield: 5%

IG Group Holdings provides a reliable dividend, yielding 4.99%, though slightly below the top UK payers. Dividends are well-covered by earnings (58.2% payout ratio) and cash flows (43.7% cash payout ratio), with stable growth over the past decade. Recent strategic moves include a share buyback program worth £150 million and executive board changes, potentially influencing future performance. The final dividend for 2024 increased to 46.2 pence per share, reflecting sustainable growth despite decreased net income of £307.7 million from last year’s £365 million.