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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
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%).
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
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
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.
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%).
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.
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
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.
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
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.
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
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%)
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
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
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
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)