Top Dividend Stocks To Consider On The UK Exchange In September 2024

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The UK market has recently faced headwinds, with the FTSE 100 index closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Despite these uncertainties, dividend stocks remain an attractive option for investors seeking steady income and potential long-term growth.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.88%

★★★★★★

OSB Group (LSE:OSB)

8.20%

★★★★★☆

4imprint Group (LSE:FOUR)

3.28%

★★★★★☆

Man Group (LSE:EMG)

5.79%

★★★★★☆

Plus500 (LSE:PLUS)

5.77%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.42%

★★★★★☆

DCC (LSE:DCC)

3.73%

★★★★★☆

NWF Group (AIM:NWF)

4.98%

★★★★★☆

Grafton Group (LSE:GFTU)

3.45%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.41%

★★★★★☆

Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

DCC

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

Overview: DCC plc is involved in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of £5.21 billion.

Operations: DCC plc's revenue segments consist of DCC Energy at £14.22 billion, DCC Healthcare at £859.38 million, and DCC Technology at £4.77 billion.

Dividend Yield: 3.7%

DCC plc offers a reliable dividend yield of 3.73% with stable and growing payouts over the past decade, supported by a reasonable earnings payout ratio of 59.5% and cash flow coverage at 39.5%. Trading at £4.83 billion, it is considered undervalued by analysts, with expectations for a price increase of 34%. Recent board changes include the appointment of Steve Holland as non-executive director, potentially bolstering strategic growth initiatives.

LSE:DCC Dividend History as at Sep 2024
LSE:DCC Dividend History as at Sep 2024

Halfords Group

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

Overview: Halfords Group plc, with a market cap of £326.33 million, operates in the United Kingdom offering motoring and cycling products and services through its subsidiaries.

Operations: Halfords Group plc generates revenue from two main segments: Retail (£997.10 million) and Autocentres (£699.40 million).

Dividend Yield: 5.4%

Halfords Group's dividend yield of 5.35% places it in the top 25% of UK dividend payers. Despite a payout ratio of 60%, dividends are well-covered by both earnings and cash flows, with a cash payout ratio of just 14.3%. However, the company has an unstable dividend track record over the past decade. Recent earnings showed sales growth to £1.70 billion, but net income declined to £16.9 million from £28.1 million last year.

LSE:HFD Dividend History as at Sep 2024
LSE:HFD Dividend History as at Sep 2024

ME Group International

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

Overview: ME Group International plc operates, sells, and services a range of instant-service equipment in the United Kingdom and has a market cap of £722.43 million.

Operations: ME Group International plc generates £304.20 million in revenue from its Personal Services segment.

Dividend Yield: 4.1%

ME Group International's interim dividend increased by 16.2% to 3.45 pence per share, returning £13 million to shareholders. Recent earnings showed sales growth to £150.36 million and net income of £22.63 million for H1 2024. The dividend is covered by earnings (payout ratio: 56.1%) and cash flows (cash payout ratio: 87.4%). However, the company's dividend track record has been volatile over the past decade, with significant insider selling in recent months.

LSE:MEGP Dividend History as at Sep 2024
LSE:MEGP Dividend History as at Sep 2024

Next Steps

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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 LSE:DCC LSE:HFD and LSE:MEGP.

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