Stock Analysis

Exploring Top Dividend Stocks In June 2024

AIM:MPE
Source: Shutterstock

As the United Kingdom's market navigates through a period of flat GDP and anticipatory sentiments around Federal Reserve rate decisions, investors are keenly watching the FTSE 100's movements. Amid these conditions, dividend stocks continue to attract attention for their potential to offer steady returns in a fluctuating economic landscape.

Top 10 Dividend Stocks In The United Kingdom

NameDividend YieldDividend Rating
Record (LSE:REC)8.15%★★★★★★
Keller Group (LSE:KLR)3.74%★★★★★☆
Impax Asset Management Group (AIM:IPX)6.78%★★★★★☆
DCC (LSE:DCC)3.51%★★★★★☆
Plus500 (LSE:PLUS)6.12%★★★★★☆
Big Yellow Group (LSE:BYG)3.79%★★★★★☆
Grafton Group (LSE:GFTU)3.73%★★★★★☆
Rio Tinto Group (LSE:RIO)6.30%★★★★★☆
NWF Group (AIM:NWF)4.05%★★★★★☆
Hargreaves Services (AIM:HSP)6.67%★★★★★☆

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

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

Epwin Group (AIM:EPWN)

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

Overview: Epwin Group Plc is a manufacturer and distributor of building products primarily in the United Kingdom, with operations extending to the rest of Europe and internationally, boasting a market capitalization of approximately £133.77 million.

Operations: Epwin Group Plc generates £250.50 million from its Extrusion and Moulding segment and £135.20 million from Fabrication and Distribution.

Dividend Yield: 5.1%

Epwin Group Plc has demonstrated a commitment to returning value to shareholders, evidenced by its recent share buyback and consistent dividend increases. In 2023, the company reported a modest increase in net income and declared a full-year dividend of £0.048 per share, up 8% from the previous year. Despite this growth, Epwin's dividend yield remains below the top quartile of UK dividend payers. The board changes and expanded buyback plan suggest proactive governance, yet the company's historical dividend volatility indicates potential uncertainty in future payouts.

AIM:EPWN Dividend History as at Jun 2024
AIM:EPWN Dividend History as at Jun 2024

M.P. Evans Group (AIM:MPE)

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

Overview: M.P. Evans Group PLC operates oil palm plantations in Indonesia and Malaysia, with a market capitalization of approximately £447.69 million.

Operations: M.P. Evans Group PLC generates revenue primarily from its plantation operations in Indonesia, totaling $307.32 million.

Dividend Yield: 5.1%

M.P. Evans Group PLC has shown a mixed performance in terms of dividend reliability, with significant fluctuations over the past decade. Despite this, recent increases in dividend payments, including a final proposed dividend of 32.5 pence per share for 2023, reflect a positive trend. The company's dividends are well-supported by both earnings and cash flow, with payout ratios of 58.7% and 64.6% respectively. However, its dividend yield of 5.13% remains slightly below the top quartile for UK markets, and recent financial results show a decline in net income from US$73.06 million to US$52.49 million year-over-year.

AIM:MPE Dividend History as at Jun 2024
AIM:MPE Dividend History as at Jun 2024

RS Group (LSE:RS1)

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

Overview: RS Group plc operates as a distributor of maintenance, repair, and operations products and service solutions across several countries including the UK, US, France, Germany, Italy, and Mexico, with a market capitalization of approximately £3.36 billion.

Operations: RS Group plc generates revenue primarily through two segments: Own-Brand Products (£404.80 million) and Other Product and Service Solutions (£2.54 billion).

Dividend Yield: 3.1%

RS Group's dividend sustainability is moderately strong, with a 56.7% earnings payout ratio and a 71.9% cash flow payout ratio. Dividend growth is evident over the past decade, though its current yield of 3.11% trails the top UK payers. Recent strategic moves include targeted acquisitions to bolster growth, such as the GBP 8 million purchase of Trident in Australia, enhancing their MRO capabilities and supporting long-term value creation through selective mergers and acquisitions.

LSE:RS1 Dividend History as at Jun 2024
LSE:RS1 Dividend History as at Jun 2024

Summing It All Up

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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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