Stock Analysis

3 UK Dividend Stocks To Enhance Your Portfolio

LSE:FSG
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The United Kingdom's FTSE 100 index has recently faced challenges, closing lower amid weak trade data from China, which has impacted companies closely tied to the Chinese market. As global economic uncertainties persist, investors may find value in dividend stocks that offer consistent income and potential stability in a fluctuating market. Focusing on reliable dividend payers can be an effective strategy to enhance a portfolio during such unpredictable times.

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Top 10 Dividend Stocks In The United Kingdom

NameDividend YieldDividend Rating
WPP (LSE:WPP)6.32%★★★★★★
Man Group (LSE:EMG)6.29%★★★★★☆
Keller Group (LSE:KLR)3.60%★★★★★☆
4imprint Group (LSE:FOUR)4.70%★★★★★☆
Grafton Group (LSE:GFTU)4.22%★★★★★☆
DCC (LSE:DCC)3.77%★★★★★☆
Big Yellow Group (LSE:BYG)4.81%★★★★★☆
NWF Group (AIM:NWF)4.74%★★★★★☆
James Latham (AIM:LTHM)7.63%★★★★★☆
OSB Group (LSE:OSB)7.08%★★★★★☆

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

We'll examine a selection from our screener results.

Brooks Macdonald Group (AIM:BRK)

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

Overview: Brooks Macdonald Group plc offers investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the UK and Channel Islands, with a market cap of £236.01 million.

Operations: Brooks Macdonald Group plc generates revenue by providing a variety of financial services, including investment and wealth management, to clients such as private individuals, pension funds, professional intermediaries, and trustees across the UK and Channel Islands.

Dividend Yield: 5.3%

Brooks Macdonald Group's dividend payments are stable and reliable, having grown consistently over the past decade. However, the dividend yield of 5.31% is below the top tier in the UK market and not well covered by earnings with a high payout ratio of 187.5%. Recent financials show improved net income at £9.6 million for H1 2025, contrasting with a loss last year, alongside strategic acquisitions to enhance its domestic focus after divesting its international arm.

AIM:BRK Dividend History as at Mar 2025
AIM:BRK Dividend History as at Mar 2025

James Latham (AIM:LTHM)

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

Overview: James Latham plc, with a market cap of £206.60 million, imports and distributes timbers, panels, and decorative surfaces across the United Kingdom, the Republic of Ireland, Europe, and internationally.

Operations: James Latham plc generates revenue of £362.22 million from its timber importing and distribution segment.

Dividend Yield: 7.6%

James Latham's dividend yield of 7.63% ranks in the top 25% of UK payers, with stable and growing payments over the past decade. Despite a low payout ratio of 33.4%, dividends are not well covered by free cash flow, indicated by a high cash payout ratio of 107%. Trading at a discount to its estimated fair value, future earnings are expected to decline slightly, which could impact dividend sustainability.

AIM:LTHM Dividend History as at Mar 2025
AIM:LTHM Dividend History as at Mar 2025

Foresight Group Holdings (LSE:FSG)

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

Overview: Foresight Group Holdings Limited is an infrastructure and private equity manager operating in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia with a market cap of £425.40 million.

Operations: Foresight Group Holdings Limited generates revenue through its infrastructure segment (£87.79 million), private equity segment (£50.78 million), and Foresight Capital Management (£8.10 million).

Dividend Yield: 6.1%

Foresight Group Holdings offers a dividend yield of 6.12%, ranking in the top 25% of UK dividend payers. While dividends have been stable and growing, they've only been paid for four years. The payout ratio of 86.6% suggests dividends are covered by earnings, and cash flow coverage is reasonable at 68.3%. Recent developments include a £2 million increase in its buyback plan and new responsibilities as sub-investment manager for Liontrust's fund, potentially enhancing future capabilities.

LSE:FSG Dividend History as at Mar 2025
LSE:FSG Dividend History as at Mar 2025

Key Takeaways

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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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About LSE:FSG

Foresight Group Holdings

Operates as an infrastructure and private equity manager in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia.

Flawless balance sheet with high growth potential and pays a dividend.

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