Top UK Dividend Stocks To Consider In November 2024

As the UK market grapples with global economic challenges, notably the sluggish recovery in China impacting commodity-linked stocks, investors are increasingly seeking stability amidst volatility. In such uncertain times, dividend stocks can offer a reliable income stream and potential for long-term growth, making them an attractive option for those looking to navigate the current market landscape.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	6.10%	★★★★★★
Keller Group (LSE:KLR)	3.20%	★★★★★☆
Impax Asset Management Group (AIM:IPX)	8.58%	★★★★★☆
4imprint Group (LSE:FOUR)	3.21%	★★★★★☆
OSB Group (LSE:OSB)	8.48%	★★★★★☆
Man Group (LSE:EMG)	6.07%	★★★★★☆
Plus500 (LSE:PLUS)	6.14%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.14%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.95%	★★★★★☆
DCC (LSE:DCC)	3.51%	★★★★★☆

Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Arbuthnot Banking Group (AIM:ARBB)

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

Overview: Arbuthnot Banking Group PLC, with a market cap of £149.82 million, operates in the United Kingdom offering private and commercial banking products and services through its subsidiaries.

Operations: Arbuthnot Banking Group PLC generates revenue through various 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: 5.1%

Arbuthnot Banking Group offers a dividend yield of 5.07%, which is below the top 25% of UK dividend payers. Its dividends are well covered by earnings, with a current payout ratio of 24.9% and forecasted at 27.9% in three years, indicating sustainability despite an unstable track record over the past decade. The stock trades at a significant discount to its estimated fair value, although it faces challenges with high bad loan levels at 4.2%.

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

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 £1.85 billion.

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

Dividend Yield: 3.9%

Grafton Group's dividend yield of 3.92% is modest compared to the top UK payers but is well-supported by earnings and cash flows, with payout ratios of 57.1% and 36.9%, respectively. Despite a recent dip in earnings, Grafton increased its interim dividend by 5%. The company maintains a strong balance sheet, enabling share buybacks and strategic acquisitions to drive growth amidst challenging trading conditions, while trading at an attractive value below fair estimates.

• Unlock comprehensive insights into our analysis of Grafton Group stock in this dividend report.
• Our valuation report unveils the possibility Grafton Group's shares may be trading at a discount.

Stelrad Group (LSE:SRAD)

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

Overview: Stelrad Group PLC manufactures and distributes radiators across the United Kingdom, Ireland, Europe, Turkey, and internationally with a market cap of £169.38 million.

Operations: Stelrad Group PLC generates revenue of £294.27 million from its radiator manufacturing and distribution activities.

Dividend Yield: 5.8%

Stelrad Group's dividend yield of 5.79% ranks in the top 25% of UK payers, supported by a payout ratio of 63.4% and cash payout ratio of 38.9%, indicating dividends are well-covered by earnings and cash flows. However, its dividend history is volatile with only three years of payments and recent instability. Despite trading below fair value estimates, Stelrad faces challenges with high debt levels but anticipates growth in earnings per share by 14.63%.

• Delve into the full analysis dividend report here for a deeper understanding of Stelrad Group.
• Insights from our recent valuation report point to the potential undervaluation of Stelrad Group shares in the market.

Make It Happen

• Dive into all 62 of the Top UK Dividend Stocks we have identified here.
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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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