Top UK Dividend Stocks To Consider In August 2024

The UK market has been experiencing turbulence, with the FTSE 100 closing lower amid weak trade data from China and declining commodity prices impacting major sectors. Despite these challenges, dividend stocks remain a compelling option for investors seeking steady income in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.85%	★★★★★★
Impax Asset Management Group (AIM:IPX)	7.15%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.56%	★★★★★☆
4imprint Group (LSE:FOUR)	3.07%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.38%	★★★★★☆
Man Group (LSE:EMG)	5.51%	★★★★★☆
Plus500 (LSE:PLUS)	5.68%	★★★★★☆
DCC (LSE:DCC)	3.74%	★★★★★☆
NWF Group (AIM:NWF)	4.84%	★★★★★☆
Grafton Group (LSE:GFTU)	3.42%	★★★★★☆

Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

James Latham (AIM:LTHM)

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

Overview: James Latham plc, with a market cap of £268.47 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 £366.51 million from its Timber Importing and Distribution segment.

Dividend Yield: 5.9%

James Latham plc offers an attractive dividend profile, with stable and growing dividends over the past decade. Despite a recent decline in earnings to £22.66 million from £35.92 million, the company declared a special dividend of 45 pence per share and increased its final dividend to 26 pence per share. The dividends are well-covered by earnings with a payout ratio of 30% and cash flows at an 87.4% cash payout ratio, ensuring sustainability for investors seeking reliable income streams.

• Navigate through the intricacies of James Latham with our comprehensive dividend report here.
• Our valuation report here indicates James Latham may be overvalued.

Somero Enterprises (AIM:SOM)

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

Overview: Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment in the United States and internationally with a market cap of £174.91 million.

Operations: Somero Enterprises, Inc. generates $120.70 million in revenue from its Construction Machinery & Equipment segment.

Dividend Yield: 7.4%

Somero Enterprises' dividend payments have increased over the past decade but have been volatile. The company's dividends are well-covered by earnings (payout ratio: 46.2%) and cash flows (cash payout ratio: 74.1%). Trading at a 20% discount to its estimated fair value, SOM offers a high yield of 7.35%, placing it in the top quartile of UK dividend payers. Recent leadership changes aim to bolster new product development under COO Jesse Aho's oversight, ensuring strategic continuity and growth potential.

• Click to explore a detailed breakdown of our findings in Somero Enterprises' dividend report.
• Upon reviewing our latest valuation report, Somero Enterprises' share price might be too pessimistic.

Grafton Group (LSE:GFTU)

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

Overview: Grafton Group plc operates in distribution, retailing, and manufacturing across Ireland, the Netherlands, Finland, and the United Kingdom with a market cap of £2.10 billion.

Operations: Grafton Group plc's revenue segments include £258.20 million from Retailing, £135.30 million from Manufacturing, and Distribution revenues of £818.11 million in the UK, £139.78 million in Finland, £631.03 million in Ireland, and £351.47 million in the Netherlands.

Dividend Yield: 3.4%

Grafton Group's dividend payments have been stable and growing over the past decade, with a current yield of 3.42%. The dividends are well-covered by both earnings (payout ratio: 51.8%) and cash flows (cash payout ratio: 32.7%). Trading at a slight discount to its estimated fair value, Grafton offers good relative value compared to peers. Recent updates indicate that first half 2024 sales/trading results will be reported on July 10, providing further insights into performance.

• Get an in-depth perspective on Grafton Group's performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that Grafton Group is priced lower than what may be justified by its financials.

Taking Advantage

• Navigate through the entire inventory of 56 Top UK Dividend Stocks here.
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Ready To Venture Into Other Investment Styles?

• 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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