Top U.K. (FTSE) Dividend Stocks

Top U.K. (FTSE) Dividend Stocks

UPDATED Sep 25, 2023

What are the best U.K. (FTSE) Dividend Stocks?

According to our Simply Wall St analysis these are the best U.K. dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

28 companies meet this criteria in the U.K. market

Big Yellow is the UK's brand leader in self storage.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: BYG's dividend (4.68%) is low compared to the top 25% of dividend payers in the UK market (6.28%).

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Rewards

  • Trading at 34.2% below our estimate of its fair value

  • Earnings are forecast to grow 24.03% per year

Risks

  • Profit margins (38.8%) are lower than last year

  • Large one-off items impacting financial results

View all Risks and Rewards

Dunelm Group plc retails homewares in the United Kingdom.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: DNLM's dividend (7.9%) is in the top 25% of dividend payers in the UK market (6.28%)

  • Notable Dividend

  • Future Dividend Coverage

  • Stable Dividend

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Rewards

  • Trading at 34.1% below our estimate of its fair value

  • Earnings are forecast to grow 5.07% per year

Risks

No risks detected for DNLM from our risks checks.

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Moneysupermarket.com Group PLC, together with its subsidiaries, provides price comparison and lead generation services through its websites in the United Kingdom.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: MONY's dividend (4.96%) is low compared to the top 25% of dividend payers in the UK market (6.28%).

See Full Stock Report

Rewards

  • Trading at 38.9% below our estimate of its fair value

  • Earnings are forecast to grow 10.91% per year

  • Earnings grew by 31.7% over the past year

Risks

No risks detected for MONY from our risks checks.

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IG Group Holdings plc, a fintech company, engages in the online trading business worldwide.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: IGG's dividend (6.82%) is in the top 25% of dividend payers in the UK market (6.28%)

  • Notable Dividend

See Full Stock Report

Rewards

  • Trading at 54.4% below our estimate of its fair value

  • Earnings are forecast to grow 3.05% per year

Risks

No risks detected for IGG from our risks checks.

View all Risks and Rewards

Halyk Bank of Kazakhstan Joint Stock Company, together with its subsidiaries, provides corporate and retail banking services primarily in the Republic of Kazakhstan, Russia, Kyrgyzstan, Tajikistan, Georgia, and Uzbekistan.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: HSBK's dividend (15.35%) is in the top 25% of dividend payers in the UK market (6.28%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 64.2% below our estimate of its fair value

  • Earnings are forecast to grow 11.15% per year

  • Earnings have grown 21% per year over the past 5 years

Risks

No risks detected for HSBK from our risks checks.

View all Risks and Rewards

ITV plc, an integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: ITV's dividend (7.07%) is in the top 25% of dividend payers in the UK market (6.28%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 65.1% below our estimate of its fair value

  • Earnings are forecast to grow 16.74% per year

Risks

  • Significant insider selling over the past 3 months

  • Profit margins (7.5%) are lower than last year (13.2%)

View all Risks and Rewards

Videndum Plc designs, manufactures, and distributes products and services that enable end users to capture and share content for the broadcast, cinematic, video, photographic, and smartphone applications worldwide.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: VID's dividend (11.53%) is in the top 25% of dividend payers in the UK market (6.28%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (4.9x) is below the UK market (14.4x)

  • Earnings are forecast to grow 13.52% per year

  • Earnings grew by 27% over the past year

Risks

  • Large one-off items impacting financial results

  • Has a high level of debt

View all Risks and Rewards

The Alumasc Group plc, together with its subsidiaries, manufactures and sells building products, systems, and solutions in the United Kingdom, Europe, North America, the Middle East, the Far East, and internationally.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: ALU's dividend (6.28%) is in the top 25% of dividend payers in the UK market (6.21%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 42.8% below our estimate of its fair value

  • Earnings are forecast to grow 4.07% per year

Risks

  • Does not have a meaningful market cap (¬£59M)

View all Risks and Rewards
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