Top UK Dividend Stocks To Consider In August 2024
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The UK market has been experiencing turbulence, with the FTSE 100 closing lower amid weak trade data from China and declining commodity prices impacting major sectors. Despite these challenges, dividend stocks remain a compelling option for investors seeking steady income in uncertain times.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.85% | ★★★★★★ |
| Impax Asset Management Group (AIM:IPX) | 7.15% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.56% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 3.07% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.38% | ★★★★★☆ |
| Man Group (LSE:EMG) | 5.51% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.68% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.74% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.84% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.42% | ★★★★★☆ |
Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
James Latham
Simply Wall St Dividend Rating: ★★★★★★
Overview: James Latham plc, with a market cap of ￡268.47 million, imports and distributes timbers, panels, and decorative surfaces across the United Kingdom, the Republic of Ireland, Europe, and internationally.
Operations: James Latham plc generates revenue of ￡366.51 million from its Timber Importing and Distribution segment.
Dividend Yield: 5.9%
James Latham plc offers an attractive dividend profile, with stable and growing dividends over the past decade. Despite a recent decline in earnings to ￡22.66 million from ￡35.92 million, the company declared a special dividend of 45 pence per share and increased its final dividend to 26 pence per share. The dividends are well-covered by earnings with a payout ratio of 30% and cash flows at an 87.4% cash payout ratio, ensuring sustainability for investors seeking reliable income streams.
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Navigate through the intricacies of James Latham with our comprehensive dividend report here.
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Our valuation report here indicates James Latham may be overvalued.
Somero Enterprises
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment in the United States and internationally with a market cap of ￡174.91 million.
Operations: Somero Enterprises, Inc. generates $120.70 million in revenue from its Construction Machinery & Equipment segment.
Dividend Yield: 7.4%
Somero Enterprises' dividend payments have increased over the past decade but have been volatile. The company's dividends are well-covered by earnings (payout ratio: 46.2%) and cash flows (cash payout ratio: 74.1%). Trading at a 20% discount to its estimated fair value, SOM offers a high yield of 7.35%, placing it in the top quartile of UK dividend payers. Recent leadership changes aim to bolster new product development under COO Jesse Aho's oversight, ensuring strategic continuity and growth potential.