UK Dividend Stocks To Watch In December 2024

As the UK's FTSE 100 index faces headwinds due to weak trade data from China, investors are navigating a market environment marked by global economic uncertainties and fluctuating commodity prices. In such conditions, dividend stocks can offer a measure of stability and income potential, making them an attractive option for those seeking reliable returns amidst broader market volatility.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Keller Group (LSE:KLR)	3.22%	★★★★★☆
4imprint Group (LSE:FOUR)	3.22%	★★★★★☆
OSB Group (LSE:OSB)	8.08%	★★★★★☆
Man Group (LSE:EMG)	5.99%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.22%	★★★★★☆
Plus500 (LSE:PLUS)	5.95%	★★★★★☆
Grafton Group (LSE:GFTU)	3.88%	★★★★★☆
DCC (LSE:DCC)	3.49%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.86%	★★★★★☆
James Latham (AIM:LTHM)	6.72%	★★★★★☆

Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Epwin Group (AIM:EPWN)

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

Overview: Epwin Group Plc manufactures and sells building products in the United Kingdom, rest of Europe, and internationally, with a market cap of £150.86 million.

Operations: Epwin Group Plc's revenue is primarily derived from its Extrusion and Moulding segment, which accounts for £233.30 million, and its Fabrication and Distribution segment, contributing £130.40 million.

Dividend Yield: 4.5%

Epwin Group's dividend payments are well covered by cash flows, with a low cash payout ratio of 27.2%, though its dividend history has been volatile over the past decade. Despite this, dividends have grown in the last 10 years and recently increased by 5% to 2.10 pence per share for the financial year ending December 2024. The company's Price-To-Earnings ratio of 16.6x is slightly below the industry average, indicating reasonable valuation for investors seeking dividends in this sector.

• Click here to discover the nuances of Epwin Group with our detailed analytical dividend report.
• Our comprehensive valuation report raises the possibility that Epwin Group is priced higher than what may be justified by its financials.

London Security (AIM:LSC)

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

Overview: London Security plc is an investment holding company that manufactures, sells, and rents fire protection equipment across several European countries including the UK, with a market cap of £398.45 million.

Operations: The company's revenue is primarily derived from the provision and maintenance of fire protection and security equipment, amounting to £221.72 million.

Dividend Yield: 3.8%

London Security's dividend payments are supported by earnings and cash flows, with payout ratios of 65.3% and 66.2%, respectively. Despite a history of volatility, dividends have grown over the past decade but remain unreliable with recent decreases to £0.80 per share. The dividend yield is lower than top-tier UK payers at 3.75%. Recent earnings show slight growth in sales to £110.86 million, though net income decreased slightly year-on-year to £9.59 million.

• Navigate through the intricacies of London Security with our comprehensive dividend report here.
• The analysis detailed in our London Security valuation report hints at an deflated share price compared to its estimated value.

Oxford Metrics (AIM:OMG)

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

Overview: Oxford Metrics plc is a smart sensing and software company operating in the United Kingdom and internationally with a market cap of £81.23 million.

Operations: Oxford Metrics plc generates revenue from its Vicon UK segment, amounting to £23.62 million, and its Vicon USA segment, totaling £21.09 million.

Dividend Yield: 4.4%

Oxford Metrics has maintained stable and growing dividends over the past decade, though its 4.41% yield is below the top UK dividend payers. While dividends are covered by earnings with a payout ratio of 70.7%, they are not well-supported by cash flow, indicated by a high cash payout ratio of 732.1%. Recent board changes include appointing Dr Ian Wilcock as Non-Executive Director, potentially influencing future strategic direction and growth initiatives.

• Get an in-depth perspective on Oxford Metrics' performance by reading our dividend report here.
• In light of our recent valuation report, it seems possible that Oxford Metrics is trading behind its estimated value.

Where To Now?

• Take a closer look at our Top UK Dividend Stocks list of 61 companies by clicking 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.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Searching for a Fresh Perspective?

• 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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