Top UK Dividend Stocks To Watch In December 2024

As the FTSE 100 index experiences fluctuations due to global economic pressures, particularly from China's sluggish recovery, investors are increasingly turning their attention to dividend stocks for potential stability and income. In such uncertain times, a strong dividend yield can be an attractive feature of a stock, offering regular income and potentially cushioning against market volatility.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Pets at Home Group (LSE:PETS)	6.14%	★★★★★★
Keller Group (LSE:KLR)	3.36%	★★★★★☆
4imprint Group (LSE:FOUR)	3.47%	★★★★★☆
OSB Group (LSE:OSB)	8.27%	★★★★★☆
Man Group (LSE:EMG)	6.12%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.79%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.36%	★★★★★☆
Plus500 (LSE:PLUS)	5.95%	★★★★★☆
Grafton Group (LSE:GFTU)	3.82%	★★★★★☆
James Latham (AIM:LTHM)	6.69%	★★★★★☆

Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

James Latham (AIM:LTHM)

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

Overview: James Latham plc, with a market cap of £235.54 million, imports and distributes timbers, panels, and decorative surfaces across the United Kingdom, Republic of Ireland, rest of Europe, and internationally.

Operations: James Latham plc generates revenue of £362.22 million from its Timber Importing and Distribution segment.

Dividend Yield: 6.7%

James Latham's dividend yield is in the top 25% of UK payers, supported by a low payout ratio of 33.4%, indicating earnings coverage. However, a high cash payout ratio of 107% raises concerns about sustainability from free cash flows. Recent earnings show a decline with net income at £10.16 million for H1 2024, down from £12.37 million the previous year, potentially impacting future dividend reliability despite stable and growing payouts over the past decade.

• Unlock comprehensive insights into our analysis of James Latham stock in this dividend report.
• In light of our recent valuation report, it seems possible that James Latham is trading behind its estimated value.

M.P. Evans Group (AIM:MPE)

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

Overview: M.P. Evans Group PLC, with a market cap of £499.29 million, operates through its subsidiaries to own and develop oil palm plantations in Indonesia and Malaysia.

Operations: M.P. Evans Group PLC generates its revenue primarily from its plantation operations in Indonesia, amounting to $336.59 million.

Dividend Yield: 4.7%

M.P. Evans Group's dividend payments have been volatile and unreliable over the past decade, despite recent growth. The dividends are well covered by both earnings and cash flows, with payout ratios of 48.9% and 33.3%, respectively, suggesting sustainability from these perspectives. However, significant insider selling in the last quarter raises caution about future prospects. Currently trading below estimated fair value by 70.1%, MPE offers good relative value compared to peers but yields lower than top UK payers at 4.66%.

• Delve into the full analysis dividend report here for a deeper understanding of M.P. Evans Group.
• Our comprehensive valuation report raises the possibility that M.P. Evans Group is priced lower than what may be justified by its financials.

Johnson Matthey (LSE:JMAT)

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

Overview: Johnson Matthey Plc operates in clean air, catalyst and hydrogen technology, and platinum group metals services across various international markets with a market cap of £2.23 billion.

Operations: Johnson Matthey Plc's revenue segments include Clean Air (£4.47 billion), PGM Services (£8.36 billion), Value Businesses (£224 million), Catalyst Technologies (£689 million), and Hydrogen Technologies (£65 million).

Dividend Yield: 5.8%

Johnson Matthey's dividend payments have been inconsistent over the past decade, though they increased during this period. The current yield of 5.77% ranks among the top UK payers but isn't well-supported by free cash flows despite a low payout ratio of 26.6%. Recent earnings showed significant improvement, with net income rising to £484 million for H1 2024 from £63 million a year prior. However, forecasted earnings declines and executive changes may impact future stability.

• Take a closer look at Johnson Matthey's potential here in our dividend report.
• According our valuation report, there's an indication that Johnson Matthey's share price might be on the cheaper side.

Taking Advantage

• Explore the 63 names from our Top UK Dividend Stocks screener 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 a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Seeking Other Investments?

• 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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