Three Top Dividend Stocks On The UK Exchange

The UK market has recently faced challenges, with the FTSE 100 index closing lower due to weak trade data from China, highlighting global economic uncertainties. In such a volatile environment, dividend stocks can offer a measure of stability and income for investors seeking reliable returns.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.99%	★★★★★★
4imprint Group (LSE:FOUR)	3.12%	★★★★★☆
Impax Asset Management Group (AIM:IPX)	7.44%	★★★★★☆
Man Group (LSE:EMG)	5.76%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.49%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.23%	★★★★★☆
Plus500 (LSE:PLUS)	5.82%	★★★★★☆
DCC (LSE:DCC)	3.76%	★★★★★☆
NWF Group (AIM:NWF)	5.06%	★★★★★☆
Grafton Group (LSE:GFTU)	3.44%	★★★★★☆

Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Alumasc Group (AIM:ALU)

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

Overview: The Alumasc Group plc, with a market cap of £100.58 million, manufactures and sells building products, systems, and solutions in the United Kingdom and internationally.

Operations: The Alumasc Group plc generates revenue from manufacturing and selling building products, systems, and solutions across various international markets including the United Kingdom, Europe, North America, the Middle East, and the Far East.

Dividend Yield: 3.7%

Alumasc Group's recent financial performance shows solid growth, with net income rising to £8.75 million from £6.6 million last year and sales increasing to £100.72 million from £89.14 million. The company announced a final dividend increase to 7.3 pence per share, reflecting its commitment to returning value to shareholders despite a historically volatile dividend track record. Dividends are well-covered by both earnings (29.7% payout ratio) and cash flows (35.5% cash payout ratio), indicating sustainability amidst revenue growth initiatives and disciplined cost management strategies.

• Click to explore a detailed breakdown of our findings in Alumasc Group's dividend report.
• The analysis detailed in our Alumasc Group valuation report hints at an deflated share price compared to its estimated value.

London Security (AIM:LSC)

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

Overview: London Security plc, with a market cap of £478.14M, manufactures, sells, and rents fire protection equipment across the United Kingdom and several European countries including Belgium, the Netherlands, Austria, France, Germany, Denmark, and Luxembourg.

Operations: London Security plc generates £219.71M in revenue from the provision and maintenance of fire protection and security equipment.

Dividend Yield: 3.2%

London Security's dividend yield (3.18%) is below the top tier in the UK market, with a payout ratio of 65.3% and cash payout ratio of 79.8%, indicating coverage by earnings and cash flows. However, its dividend payments have been volatile over the past decade despite overall growth. Recent board changes include Andrew Kitchingman joining as an independent non-executive director, potentially strengthening governance and oversight amidst these financial dynamics.

• Take a closer look at London Security's potential here in our dividend report.
• The valuation report we've compiled suggests that London Security's current price could be inflated.

Big Yellow Group (LSE:BYG)

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

Overview: Big Yellow Group (LSE:BYG) is the UK's leading self-storage company with a market cap of approximately £2.53 billion.

Operations: Big Yellow Group generates £199.62 million from the provision of self-storage and related services.

Dividend Yield: 3.5%

Big Yellow Group's dividend yield of 3.49% is lower than the top 25% of UK dividend payers but remains covered by earnings (81.4%) and cash flows (84.3%). Despite a recent decrease in the final dividend to 22.6 pence per share, dividends have been stable over the past decade with consistent growth. The company reported Q1 revenue of £50.2 million, up from £48.1 million last year, and plans to expand with a new store in London by 2026.

• Delve into the full analysis dividend report here for a deeper understanding of Big Yellow Group.
• The valuation report we've compiled suggests that Big Yellow Group's current price could be quite moderate.

Next Steps

• Gain an insight into the universe of 58 Top UK Dividend Stocks by clicking here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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