The United Kingdom's FTSE 100 index recently faltered, closing lower amid weak trade data from China, which has struggled to recover from the pandemic. In such uncertain market conditions, dividend stocks can offer a reliable income stream and potential stability. Here we explore Next 15 Group and two other top UK dividend stocks that stand out in this environment.
Overview: Next 15 Group plc, with a market cap of ￡451.53 million, provides communications services across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific through its subsidiaries.
Operations: Next 15 Group plc generates revenue from providing communications services across various regions, including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.
Dividend Yield: 3.4%
Next 15 Group's dividend yield of 3.38% is lower than the top 25% of UK dividend payers. Despite a high debt level and volatile share price, its dividends are well-covered by earnings (payout ratio: 25.2%) and cash flows (cash payout ratio: 23.3%). However, the company's dividend history has been unstable over the past decade. Recent earnings show net income increased to ￡22.14 million for H1 2025 from ￡14.26 million a year ago, with EPS rising accordingly.
Overview: Morgan Advanced Materials plc operates as a materials science and application engineering company primarily in the United Kingdom, with a market cap of ￡786.81 million.
Operations: Morgan Advanced Materials plc generates revenue from its Carbon & Technical Ceramics Division, with the Technical Ceramics segment contributing ￡320.90 million.
Dividend Yield: 4.4%
Morgan Advanced Materials has a mixed dividend history, with past payments being volatile and unreliable. However, recent performance shows improvement: earnings for H1 2024 rose to ￡37.4 million from ￡14.8 million in H1 2023, with EPS increasing significantly. The company announced an interim dividend of 5.4 pence per share, slightly up from last year. Despite a high debt level, dividends are well-covered by earnings (payout ratio: 49.8%) and cash flows (cash payout ratio: 73.1%).
Overview: OSB Group Plc, with a market cap of ￡1.48 billion, operates as a specialist mortgage lending and retail savings company in the United Kingdom and the Channel Islands through its subsidiaries.
Operations: OSB Group's revenue segments include ￡431.10 million from Onesavings Bank Plc (OSB) and ￡377.20 million from Charter Court Financial Services Group Plc (CCFS).
Dividend Yield: 8.4%
OSB Group's dividend payments have been cut at least once in the past decade due to UK authorities requesting banks and lenders suspend their dividends following the outbreak of COVID-19, although they have increased overall. The company recently declared an interim dividend of 10.7 pence per share for 2024, up from 10.2 pence in 2023. Despite a high bad loans ratio (3.6%), dividends are well-covered by earnings with a current payout ratio of 32.8% and forecasted to remain sustainable at 34.2%. Recent earnings surged significantly, with H1 net income rising to ￡178.3 million from ￡59.3 million last year, reflecting strong financial performance that supports its dividend strategy.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AIM:NFG LSE:MGAM and LSE:OSB .
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