3 UK Dividend Stocks To Consider With Up To 6.3% Yield

The United Kingdom's FTSE 100 index recently experienced a downturn, influenced by weak trade data from China that highlighted ongoing challenges in global economic recovery. As investors navigate these uncertain times, dividend stocks can offer potential stability and income, making them an attractive option for those seeking to balance risk with regular returns.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.94%	★★★★★★
Impax Asset Management Group (AIM:IPX)	8.20%	★★★★★☆
4imprint Group (LSE:FOUR)	3.01%	★★★★★☆
OSB Group (LSE:OSB)	9.03%	★★★★★☆
Plus500 (LSE:PLUS)	6.40%	★★★★★☆
Man Group (LSE:EMG)	6.36%	★★★★★☆
DCC (LSE:DCC)	4.03%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.88%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.02%	★★★★★☆
Grafton Group (LSE:GFTU)	3.68%	★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

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

James Halstead (AIM:JHD)

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

Overview: James Halstead plc manufactures and supplies flooring products for both commercial and domestic uses across the United Kingdom, Europe, Scandinavia, Australasia, Asia, and internationally with a market cap of £833.57 million.

Operations: James Halstead plc generates revenue of £274.88 million from the manufacture and distribution of flooring products across various international markets.

Dividend Yield: 4.2%

James Halstead has proposed a record final dividend of 6.0 pence for 2024, marking its 49th consecutive year of increases, with total annual dividends reaching 8.5 pence. Despite a slight decline in sales to £274.88 million and stable net income at £41.52 million, the company's dividend remains covered by cash flows (77% payout) and earnings (85.3% payout). The yield is relatively low at 4.25%, but dividends have been stable and growing over the past decade.

• Click here to discover the nuances of James Halstead with our detailed analytical dividend report.
• The valuation report we've compiled suggests that James Halstead's current price could be inflated.

IG Group Holdings (LSE:IGG)

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

Overview: IG Group Holdings plc is a fintech company that operates in the online trading business globally, with a market cap of £3.24 billion.

Operations: IG Group Holdings plc generates revenue of £954.50 million from its brokerage segment.

Dividend Yield: 5.1%

IG Group Holdings maintains a sustainable dividend with a payout ratio of 58.2% and cash payout ratio of 43.3%, indicating strong coverage by both earnings and cash flows. The dividend has been stable and growing over the past decade, although its yield of 5.06% is below the top quartile in the UK market. Recent executive changes include Clifford Abrahams joining as CFO, potentially strengthening financial oversight as he brings extensive experience from major financial institutions.

• Dive into the specifics of IG Group Holdings here with our thorough dividend report.
• Our valuation report unveils the possibility IG Group Holdings' shares may be trading at a discount.

Vesuvius (LSE:VSVS)

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

Overview: Vesuvius plc offers molten metal flow engineering and technology services to the steel and foundry casting industries globally, with a market cap of approximately £969.38 million.

Operations: Vesuvius plc's revenue is primarily derived from its segments in Foundry (£496.80 million), Steel - Flow Control (£784.90 million), Steel - Sensors & Probes (£40.70 million), and Steel - Advanced Refractories (£548.60 million).

Dividend Yield: 6.4%

Vesuvius offers a dividend yield of 6.38%, placing it in the top 25% of UK dividend payers. Despite this, its dividends have been unreliable over the past decade due to volatility, with drops exceeding 20% annually at times. However, current dividends are well-covered by both earnings and cash flows, each with a payout ratio around 59.8%. Trading significantly below estimated fair value suggests potential for capital appreciation alongside income generation.

• Delve into the full analysis dividend report here for a deeper understanding of Vesuvius.
• Our expertly prepared valuation report Vesuvius implies its share price may be lower than expected.

Next Steps

• Navigate through the entire inventory of 60 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.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

• 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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