3 UK Dividend Stocks With Yields Up To 7.5%

The United Kingdom's FTSE 100 index has recently experienced downturns, influenced by weak trade data from China, which has impacted companies with strong ties to the Chinese economy. In such volatile market conditions, dividend stocks can offer investors a measure of stability and income through regular payouts, making them an attractive option for those seeking to navigate uncertain economic landscapes.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.97%	★★★★★★
Impax Asset Management Group (AIM:IPX)	8.19%	★★★★★☆
4imprint Group (LSE:FOUR)	3.22%	★★★★★☆
OSB Group (LSE:OSB)	8.55%	★★★★★☆
Man Group (LSE:EMG)	6.12%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.12%	★★★★★☆
Plus500 (LSE:PLUS)	6.07%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.99%	★★★★★☆
Grafton Group (LSE:GFTU)	3.77%	★★★★★☆
DCC (LSE:DCC)	3.52%	★★★★★☆

Click here to see the full list of 66 stocks from our Top UK Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Bodycote (LSE:BOY)

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

Overview: Bodycote plc offers heat treatment and thermal processing services globally, with a market cap of £1.14 billion.

Operations: Bodycote plc's revenue segments include Aerospace, Defence & Energy (ADE) with £194.50 million from North America, £160 million from Western Europe, and £8 million from Emerging Markets; and Automotive & General Industrial (AGI) with £97.60 million from North America, £237.30 million from Western Europe, and £84 million from Emerging Markets.

Dividend Yield: 3.7%

Bodycote's dividend payments have been volatile over the past decade, with inconsistent growth and occasional significant drops. Despite this, recent improvements show dividends are well-covered by earnings (payout ratio of 69%) and cash flows (cash payout ratio of 45.4%). The dividend yield at 3.69% is below the top UK payers' average but remains sustainable given current financials. Recent trading updates indicate modest revenue growth in Aerospace and Energy sectors, despite challenges in Industrial Markets and Automotive.

• Unlock comprehensive insights into our analysis of Bodycote stock in this dividend report.
• Upon reviewing our latest valuation report, Bodycote's share price might be too pessimistic.

Ninety One Group (LSE:N91)

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

Overview: Ninety One Group is an independent global asset manager with a market cap of £1.46 billion.

Operations: Ninety One Group generates revenue through its Investment Management Business, which reported £588.50 million.

Dividend Yield: 7.6%

Ninety One Group's dividend has grown steadily over its four-year history, with a payout ratio of 66.8% and cash payout ratio of 65.3%, indicating dividends are well-covered by earnings and cash flows. The yield is among the top 25% in the UK market. Although relatively new to paying dividends, stability is evident, supported by earnings growth of 4% annually over five years. Recent executive changes aim to enhance business growth in Southeast Asia.

• Navigate through the intricacies of Ninety One Group with our comprehensive dividend report here.
• Our valuation report unveils the possibility Ninety One Group's shares may be trading at a discount.

Ultimate Products (LSE:ULTP)

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

Overview: Ultimate Products Plc, along with its subsidiaries, supplies branded household products in the UK, Germany, the rest of Europe, and internationally with a market cap of £105.22 million.

Operations: Ultimate Products Plc generates revenue from its Wholesale - Miscellaneous segment, amounting to £155.50 million.

Dividend Yield: 6%

Ultimate Products' dividend is covered by earnings with a payout ratio of 60.7% and cash flows at 44.8%, placing it among the top 25% of UK dividend payers. However, its eight-year history shows volatility in payments, raising concerns about reliability. The stock trades at a significant discount to estimated fair value, though recent insider selling may signal caution. Recent buybacks and board changes could influence future performance amid declining sales and net income for the year ending July 2024.

• Dive into the specifics of Ultimate Products here with our thorough dividend report.
• Our valuation report here indicates Ultimate Products may be undervalued.

Turning Ideas Into Actions

• Get an in-depth perspective on all 66 Top UK Dividend Stocks by using our screener here.
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Searching for a Fresh Perspective?

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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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