UK Dividend Stocks To Consider In December 2024

As the UK market grapples with global economic challenges, including sluggish trade data from China affecting the FTSE 100 and FTSE 250 indices, investors are keenly observing how these dynamics impact their portfolios. In such a volatile environment, dividend stocks can offer a measure of stability and potential income, making them an attractive option for those looking to navigate uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Pets at Home Group (LSE:PETS)	6.07%	★★★★★★
4imprint Group (LSE:FOUR)	3.45%	★★★★★☆
OSB Group (LSE:OSB)	8.27%	★★★★★☆
Man Group (LSE:EMG)	6.07%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.70%	★★★★★☆
Plus500 (LSE:PLUS)	5.86%	★★★★★☆
DCC (LSE:DCC)	3.87%	★★★★★☆
Grafton Group (LSE:GFTU)	3.81%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.28%	★★★★★☆
James Latham (AIM:LTHM)	6.69%	★★★★★☆

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

Let's take a closer look at a couple of our picks from the screened companies.

Arbuthnot Banking Group (AIM:ARBB)

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

Overview: Arbuthnot Banking Group PLC, with a market cap of £147.80 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 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 been volatile over the past decade, with an unreliable track record. Despite this, dividends are currently well covered by earnings at a 24.9% payout ratio and are forecast to remain sustainable in three years at 37.2%. However, the bank faces challenges with a high level of bad loans (4.2%) and low allowance for these loans (8%). The stock trades below estimated fair value but offers a lower-than-top-tier dividend yield of 5.18%.

• Click to explore a detailed breakdown of our findings in Arbuthnot Banking Group's dividend report.
• Upon reviewing our latest valuation report, Arbuthnot Banking Group's share price might be too pessimistic.

4imprint Group (LSE:FOUR)

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

Overview: 4imprint Group plc is a direct marketer of promotional products operating in North America, the United Kingdom, and Ireland, with a market capitalization of approximately £1.35 billion.

Operations: The company's revenue is derived from its operations in North America, contributing $1.33 billion, and the UK & Ireland, contributing $25 million.

Dividend Yield: 3.4%

4imprint Group offers a stable dividend yield of 3.45%, though below the top UK payers. Its dividends are well-supported by earnings and cash flow, with payout ratios of 58.1% and 54.4%, respectively, indicating sustainability. The company has shown consistent dividend growth over the past decade. Recent guidance suggests group revenue for 2024 will reach $1.37 billion, while a new CFO appointment may influence strategic direction moving forward.

• Click here and access our complete dividend analysis report to understand the dynamics of 4imprint Group.
• Our valuation report here indicates 4imprint 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 £1.89 billion.

Operations: Grafton Group's revenue is primarily derived from 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).

Dividend Yield: 3.8%

Grafton Group's dividend payments have been stable and reliable over the past decade, supported by a low cash payout ratio of 36.8% and an earnings payout ratio of 57.1%, ensuring coverage by both cash flows and profits. Despite a lower yield of 3.81% compared to top UK dividend payers, its dividends are sustainable with consistent growth. Recent M&A activity with Salvador Escoda S.A. could impact future financial strategies amidst notable insider selling in recent months.

• Dive into the specifics of Grafton Group here with our thorough dividend report.
• The analysis detailed in our Grafton Group valuation report hints at an deflated share price compared to its estimated value.

Seize The Opportunity

• Explore the 62 names from our Top UK Dividend Stocks screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Contemplating Other Strategies?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com