3 UK Dividend Stocks With Yields Up To 4.6% To Enhance Your Portfolio

Amidst a backdrop of fluctuating global markets, the UK's FTSE 100 is poised for a second consecutive day of losses, reflecting broader economic uncertainties. In such an environment, dividend stocks can offer investors a measure of stability and potential income generation, qualities that are particularly appealing in unpredictable times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.94%	★★★★★★
Impax Asset Management Group (AIM:IPX)	7.04%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.00%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.70%	★★★★★☆
Plus500 (LSE:PLUS)	5.80%	★★★★★☆
DCC (LSE:DCC)	3.56%	★★★★★☆
Rio Tinto Group (LSE:RIO)	6.26%	★★★★★☆
Hargreaves Services (AIM:HSP)	6.67%	★★★★★☆
NWF Group (AIM:NWF)	4.66%	★★★★★☆
Grafton Group (LSE:GFTU)	3.51%	★★★★★☆

Click here to see the full list of 54 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 offers private and commercial banking services in the United Kingdom, with a market capitalization of approximately £163.19 million.

Operations: Arbuthnot Banking Group PLC generates revenue through various segments, including Wealth Management (£11.33 million), ALL Other Divisions (£15.01 million), Mortgage Portfolios (£3.42 million), Asset Alliance Group (AAG) (£11.90 million), Renaissance Asset Finance (RAF) (£7.10 million), Banking excluding Wealth Management (£115.52 million), Arbuthothnot Specialist Finance Limited (ASFL) (£0.81 million), and Arbuthnot Commercial Asset Based Lending (ACABL) (£15.32 million).

Dividend Yield: 4.7%

Arbuthnot Banking Group's dividend sustainability is underpinned by a low payout ratio of 20.6%, indicating strong coverage by earnings, with forecasts suggesting continued coverage at 26.4% in three years. However, its dividend track record over the past decade has been unstable and unreliable, reflecting volatility in payments. Additionally, its dividend yield of 4.69% trails behind the top UK dividend payers. The recent appointment of Richard Gabbertas as a non-executive director could influence governance and oversight, potentially impacting future financial strategies including dividends.

• Get an in-depth perspective on Arbuthnot Banking Group's performance by reading our dividend report here.
• Our valuation report unveils the possibility Arbuthnot Banking Group's shares may be trading at a premium.

London Security (AIM:LSC)

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

Overview: London Security plc is an investment holding company that manufactures, sells, and rents fire protection equipment across several European countries, with a market capitalization of approximately £465.88 million.

Operations: London Security plc generates revenue primarily through the provision and maintenance of fire protection and security equipment, totaling £219.71 million.

Dividend Yield: 3.3%

London Security's final dividend for 2023 is set at £0.42 per share, maintaining the previous year's level, payable on 12 July 2024. The dividends are supported by a payout ratio of 65.3% and a cash payout ratio of 79.8%, indicating coverage by both earnings and cash flows. However, the company has experienced volatility in its dividend payments over the past decade, with unreliable growth patterns and a current yield of 3.26%, which is below the top quartile of UK dividend stocks at 5.49%.

• Click here to discover the nuances of London Security with our detailed analytical dividend report.
• Our expertly prepared valuation report London Security implies its share price may be too high.

Kingfisher (LSE:KGF)

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

Overview: Kingfisher plc operates as a retailer of home improvement products and services in the UK, Ireland, France, and other international markets, with a market capitalization of approximately £4.90 billion.

Operations: Kingfisher plc generates £12.98 billion from its core business of supplying home improvement products and services.

Dividend Yield: 4.6%

Kingfisher's recent Q1 sales of £3.26 billion show minimal growth, reflecting a challenging market environment. The upcoming CFO transition with Bhavesh Mistry could bring fresh perspectives to its financial strategies. Although Kingfisher's dividend yield of 4.63% trails the top UK payers, its dividends are sustainably covered by earnings and cash flows, with a payout ratio of 68.2% and a cash payout ratio of 23.7%. However, the company’s dividend history has been marked by instability and volatility over the past decade.

• Dive into the specifics of Kingfisher here with our thorough dividend report.
• The valuation report we've compiled suggests that Kingfisher's current price could be quite moderate.

Next Steps

• Click here to access our complete index of 54 Top UK Dividend Stocks.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Want To Explore Some Alternatives?

• 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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