3 UK Dividend Stocks With Up To 5.8% Yield For Your Portfolio

Amidst the backdrop of a faltering FTSE 100, influenced by weak trade data from China and global economic uncertainties, investors are increasingly seeking stability and income through dividend stocks. In such volatile times, selecting stocks with robust dividend yields can provide a cushion against market fluctuations while offering potential income streams for portfolios.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
WPP (LSE:WPP)	6.12%	★★★★★★
Man Group (LSE:EMG)	6.42%	★★★★★☆
Keller Group (LSE:KLR)	3.68%	★★★★★☆
4imprint Group (LSE:FOUR)	3.12%	★★★★★☆
OSB Group (LSE:OSB)	7.32%	★★★★★☆
DCC (LSE:DCC)	3.73%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.87%	★★★★★☆
NWF Group (AIM:NWF)	4.76%	★★★★★☆
Grafton Group (LSE:GFTU)	4.38%	★★★★★☆
James Latham (AIM:LTHM)	7.38%	★★★★★☆

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

Let's explore several standout options from the results in the screener.

Arbuthnot Banking Group (AIM:ARBB)

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

Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market capitalization of £144.25 million.

Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (£12.32 million), Asset Alliance Group (AAG) (£14.81 million), Renaissance Asset Finance (RAF) (£9.59 million), Arbuthnot Commercial Asset Based Lending (ACABL) (£16.03 million), and a Segment Adjustment of £108.98 million in the United Kingdom.

Dividend Yield: 5.3%

Arbuthnot Banking Group's dividend profile presents a mixed picture. While the dividend payments have increased over the past decade, they have been volatile and unreliable. The current payout ratio of 24.9% suggests dividends are well covered by earnings, with forecasts indicating sustainability in three years at 37.2%. However, a high level of bad loans (4.2%) and declining earnings forecasts may impact future payouts despite trading below estimated fair value by 34.4%.

• Click here to discover the nuances of Arbuthnot Banking Group with our detailed analytical dividend report.
• Our valuation report here indicates Arbuthnot Banking Group may be undervalued.

Grafton Group (LSE:GFTU)

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

Overview: Grafton Group plc operates in the distribution, retailing, and manufacturing sectors across Ireland, the Netherlands, Finland, and the United Kingdom with a market cap of £1.64 billion.

Operations: Grafton Group's revenue is derived from several segments: Retailing (£257.64 million), Manufacturing (£123.80 million), UK Distribution (£793.17 million), Finland Distribution (£134.42 million), Ireland Distribution (£630.06 million), and Netherlands Distribution (£342.09 million).

Dividend Yield: 4.4%

Grafton Group offers a stable dividend yield of 4.38%, though it trails behind the top UK payers. The dividends are well-covered by both earnings (57.1% payout) and cash flow (36.7% cash payout), indicating sustainability. Over the past decade, dividends have been reliable and growing steadily, supported by a favorable price-to-earnings ratio of 12.5x compared to the market average of 15.7x, suggesting good value despite recent revenue declines due to currency impacts.

• Get an in-depth perspective on Grafton Group's performance by reading our dividend report here.
• Our expertly prepared valuation report Grafton Group implies its share price may be lower than expected.

SThree (LSE:STEM)

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

Overview: SThree plc is a specialist recruitment company operating in the sciences, technology, engineering, and mathematics sectors across various countries including the UK and the US, with a market cap of £315.02 million.

Operations: SThree plc's revenue segments are comprised of £299.23 million from the USA, £456.05 million from the DACH region, £353.15 million from the Rest of Europe, £40.91 million from the Middle East & Asia, and £343.57 million from the Netherlands (including Spain).

Dividend Yield: 5.9%

SThree's dividend yield is among the top 25% in the UK, yet recent cuts to its final dividend highlight volatility concerns. Despite a history of fluctuating dividends, current payouts are well-supported by earnings (38.2% payout) and cash flows (70.1% cash payout). The stock trades at a favorable price-to-earnings ratio of 6.3x compared to the market average, indicating good value despite recent earnings declines and share price volatility over three months.

• Navigate through the intricacies of SThree with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, SThree's share price might be too pessimistic.

Turning Ideas Into Actions

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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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