Top UK Dividend Stocks To Consider In July 2024

The United Kingdom stock market has shown stability over the last week and a modest growth of 4.5% over the past year, with earnings forecasted to grow by 13% annually. In this context, dividend stocks that demonstrate consistent payouts and potential for earnings growth are particularly appealing for investors looking to capitalize on current market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.81%	★★★★★★
Impax Asset Management Group (AIM:IPX)	6.79%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.88%	★★★★★☆
Rio Tinto Group (LSE:RIO)	6.63%	★★★★★☆
Plus500 (LSE:PLUS)	5.87%	★★★★★☆
DCC (LSE:DCC)	3.73%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.47%	★★★★★☆
Hargreaves Services (AIM:HSP)	6.34%	★★★★★☆
NWF Group (AIM:NWF)	4.66%	★★★★★☆
Grafton Group (LSE:GFTU)	3.55%	★★★★★☆

Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

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 Europe and internationally, boasting a market capitalization of approximately £130.88 million.

Operations: Epwin Group Plc generates its revenue primarily through two segments: Extrusion and Moulding, which brings in £250.50 million, and Fabrication and Distribution, contributing £135.20 million.

Dividend Yield: 5.2%

Epwin Group trades at 22.9% below its estimated fair value, with earnings having grown by 10.7% last year. Despite a dividend yield of 5.16%, slightly lower than the top UK payers, its dividends are well-covered with a payout ratio of 74.9% and a cash payout ratio of 23.3%. However, Epwin's dividend history shows volatility and unreliability over the past decade, lacking consistent growth or stability in payments despite recent improvements in coverage from earnings and cash flows.

• Unlock comprehensive insights into our analysis of Epwin Group stock in this dividend report.
• Our expertly prepared valuation report Epwin Group implies its share price may be lower than expected.

Wynnstay Group (AIM:WYN)

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

Overview: Wynnstay Group Plc, based in the United Kingdom, specializes in manufacturing and supplying agricultural products with a market capitalization of £80.48 million.

Operations: Wynnstay Group Plc generates its revenue primarily through two segments: £507.75 million from Agriculture and £147.39 million from Specialist Agricultural Merchanting.

Dividend Yield: 5%

Wynnstay Group reported a decline in half-year sales to £328.49 million and net income to £3.29 million, reflecting lower profitability with a net profit margin of 0.9%. Despite this, dividends are sustainable with a payout ratio of 67.1% and an exceptionally low cash payout ratio of 12.3%, indicating strong coverage by earnings and cash flows respectively. However, its dividend yield at 4.96% is below the top quartile in the UK market, although it has shown stability and growth over the past decade.

• Navigate through the intricacies of Wynnstay Group with our comprehensive dividend report here.
• According our valuation report, there's an indication that Wynnstay Group's share price might be on the expensive side.

ME Group International (LSE:MEGP)

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

Overview: ME Group International plc specializes in operating, selling, and servicing a variety of instant-service equipment across the United Kingdom, with a market capitalization of approximately £698.19 million.

Operations: ME Group International plc generates £304.20 million in revenue from its personal services segment.

Dividend Yield: 4%

ME Group International's dividend history shows variability, with significant fluctuations over the past decade. Despite this, recent increases suggest improvement; the interim dividend rose by 16.2% to 3.45 pence per share, disbursing £13 million to shareholders. Earnings coverage remains adequate at a payout ratio of 56.1%, and cash flows sufficiently cover dividends with an 82% cash payout ratio. However, its yield of 3.99% trails behind the top UK dividend payers' average of 5.51%.

• Click here and access our complete dividend analysis report to understand the dynamics of ME Group International.
• Our comprehensive valuation report raises the possibility that ME Group International is priced lower than what may be justified by its financials.

Where To Now?

• Delve into our full catalog of 55 Top UK Dividend Stocks here.
• 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.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of 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.

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