3 UK Dividend Stocks With Yields Up To 7.0%

As the UK market faces challenges from weak global cues and faltering trade data from China, the FTSE 100 has seen some downward pressure, reflecting broader economic uncertainties. In such an environment, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those seeking to navigate these turbulent times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	6.13%	★★★★★★
Impax Asset Management Group (AIM:IPX)	7.77%	★★★★★☆
4imprint Group (LSE:FOUR)	3.05%	★★★★★☆
OSB Group (LSE:OSB)	9.02%	★★★★★☆
Plus500 (LSE:PLUS)	6.43%	★★★★★☆
Man Group (LSE:EMG)	6.38%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.78%	★★★★★☆
DCC (LSE:DCC)	3.89%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.74%	★★★★★☆
Grafton Group (LSE:GFTU)	3.65%	★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

We'll examine a selection from our screener results.

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 £149.42 million.

Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (£12.32 million), Asset Alliance Group (£14.81 million), Renaissance Asset Finance (£9.42 million), and Arbuthnot Commercial Asset Based Lending (£16.03 million).

Dividend Yield: 5.2%

Arbuthnot Banking Group's dividend payments have increased over the past decade, yet they remain volatile and unreliable. Despite a low payout ratio of 24.9%, indicating dividends are well covered by earnings, the dividend yield of 5.18% is below the top tier in the UK market. The bank has a high level of bad loans at 4.2% with a low allowance for these loans at 8%. Recent office relocation is not directly relevant to dividend prospects.

• Click here and access our complete dividend analysis report to understand the dynamics of Arbuthnot Banking Group.
• Our valuation report here indicates Arbuthnot Banking Group may be undervalued.

Hargreaves Services (AIM:HSP)

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

Overview: Hargreaves Services Plc offers environmental and industrial services across the United Kingdom, Europe, Hong Kong, and internationally with a market cap of £169.42 million.

Operations: Hargreaves Services Plc generates revenue primarily from its Services segment, which accounts for £206.86 million, and also includes contributions from Hargreaves Land at £7.04 million.

Dividend Yield: 7.0%

Hargreaves Services has increased its dividend significantly, with a full-year payout of £0.36, up from £0.21 last year. However, the high payout ratio of 94.8% suggests dividends are not well covered by earnings, though they are supported by cash flows with a cash payout ratio of 58.3%. Despite being in the top 25% for yield at 7%, dividends have been volatile over the past decade and insider selling raises concerns about sustainability.

• Delve into the full analysis dividend report here for a deeper understanding of Hargreaves Services.
• The valuation report we've compiled suggests that Hargreaves Services' current price could be inflated.

Anglo-Eastern Plantations (LSE:AEP)

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

Overview: Anglo-Eastern Plantations Plc, along with its subsidiaries, owns, operates, and develops agricultural plantations in Indonesia and Malaysia with a market cap of £267.73 million.

Operations: Anglo-Eastern Plantations generates revenue primarily from the cultivation of plantations, amounting to $364.23 million.

Dividend Yield: 3.4%

Anglo-Eastern Plantations' dividend yield of 3.4% is below the top 25% of UK dividend payers. Despite a low payout ratio of 10.7%, indicating dividends are well-covered by earnings, its track record shows volatility and unreliability over the past decade. Recent executive changes, including a new CEO and an emphasis on ESG initiatives, may influence strategic direction amid declining production figures for fresh fruit bunches and crude palm oil in 2024 compared to previous periods.

• Get an in-depth perspective on Anglo-Eastern Plantations' performance by reading our dividend report here.
• Our valuation report unveils the possibility Anglo-Eastern Plantations' shares may be trading at a discount.

Make It Happen

• Click here to access our complete index of 60 Top UK Dividend Stocks.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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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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