Top U.K. (FTSE) Dividend Stocks

Top U.K. (FTSE) Dividend Stocks

UPDATED Aug 16, 2022

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.

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

Severfield plc, a structural steelwork company, engages in the designing, manufacturing, fabrication, construction, and erection of steelwork activities in the United Kingdom, Republic of Ireland, Mainland Europe, and India.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: SFR's dividend (5.17%) is in the top 25% of dividend payers in the UK market (5.13%)

  • Notable Dividend

  • Stable Dividend

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Rewards

  • Trading at 36.1% below our estimate of its fair value

  • Earnings are forecast to grow 13.24% per year

Risks

No risks detected for SFR from our risks checks.

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Hilton Food Group plc, together with its subsidiaries, engages in the food packing business.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: HFG's dividend (2.85%) is low compared to the top 25% of dividend payers in the UK market (5.13%).

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Rewards

  • Trading at 69.1% below our estimate of its fair value

  • Earnings are forecast to grow 16.13% per year

Risks

  • Shareholders have been diluted in the past year

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TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia, Azerbaijan, and Uzbekistan.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: TBCG's dividend (8.52%) is in the top 25% of dividend payers in the UK market (5.13%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

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Rewards

  • Trading at 85% below our estimate of its fair value

  • Earnings are forecast to grow 8.86% per year

  • Earnings have grown 17.9% per year over the past 5 years

Risks

  • High level of non-cash earnings

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Begbies Traynor Group plc provides various professional services to businesses, professional advisors, large corporations, and financial institutions in the United Kingdom.

Dividend Criteria

  • Stable Dividend

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: BEG's dividend (2.4%) is low compared to the top 25% of dividend payers in the UK market (5.13%).

  • Earnings Coverage

See Full Stock Report

Rewards

  • Trading at 58.6% below our estimate of its fair value

  • Earnings are forecast to grow 66.86% per year

Risks

No risks detected for BEG from our risks checks.

View all Risks and Rewards

Ocean Wilsons Holdings Limited, an investment holding company, offers maritime and logistics services in Brazil.

Dividend Criteria

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: OCN's dividend (6.56%) is in the top 25% of dividend payers in the UK market (5.13%)

  • Notable Dividend

  • Earnings Coverage

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 3.1% below our estimate of its fair value

  • Earnings are forecast to grow 108.1% per year

Risks

No risks detected for OCN from our risks checks.

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Zotefoams plc, together with its subsidiaries, manufactures, distributes, and sells polyolefin block foams in the United Kingdom, Continental Europe, North America, and internationally.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: ZTF's dividend (2.1%) is low compared to the top 25% of dividend payers in the UK market (5.13%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 63.9% below our estimate of its fair value

  • Earnings are forecast to grow 31.79% per year

Risks

  • Profit margins (5.2%) are lower than last year (8.5%)

  • Volatile share price over the past 3 months

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Appreciate Group plc, together with its subsidiaries, operates as a prepayment, gifting, and engagement company for corporate and consumer markets in the United Kingdom.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: APP's dividend (7.75%) is in the top 25% of dividend payers in the UK market (5.13%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 38.1% below our estimate of its fair value

  • Earnings are forecast to grow 30.32% per year

  • Earnings grew by 416.1% over the past year

Risks

  • Does not have a meaningful market cap (¬£58M)

  • Large one-off items impacting financial results

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Castings P.L.C. engages in the iron casting and machining activities.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: CGS's dividend (5.07%) is low compared to the top 25% of dividend payers in the UK market (5.13%).

See Full Stock Report

Rewards

  • Trading at 64.6% below our estimate of its fair value

  • Earnings are forecast to grow 12.72% per year

  • Earnings grew by 106.1% over the past year

Risks

No risks detected for CGS from our risks checks.

View all Risks and Rewards
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