Top Dividend Stocks To Consider On The UK Exchange In September 2024

The UK market has recently faced headwinds, with the FTSE 100 index closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Despite these uncertainties, dividend stocks remain an attractive option for investors seeking steady income and potential long-term growth.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.88%	★★★★★★
OSB Group (LSE:OSB)	8.20%	★★★★★☆
4imprint Group (LSE:FOUR)	3.28%	★★★★★☆
Man Group (LSE:EMG)	5.79%	★★★★★☆
Plus500 (LSE:PLUS)	5.77%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.42%	★★★★★☆
DCC (LSE:DCC)	3.73%	★★★★★☆
NWF Group (AIM:NWF)	4.98%	★★★★★☆
Grafton Group (LSE:GFTU)	3.45%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.41%	★★★★★☆

Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

DCC (LSE:DCC)

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

Overview: DCC plc is involved in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of £5.21 billion.

Operations: DCC plc's revenue segments consist of DCC Energy at £14.22 billion, DCC Healthcare at £859.38 million, and DCC Technology at £4.77 billion.

Dividend Yield: 3.7%

DCC plc offers a reliable dividend yield of 3.73% with stable and growing payouts over the past decade, supported by a reasonable earnings payout ratio of 59.5% and cash flow coverage at 39.5%. Trading at £4.83 billion, it is considered undervalued by analysts, with expectations for a price increase of 34%. Recent board changes include the appointment of Steve Holland as non-executive director, potentially bolstering strategic growth initiatives.

• Take a closer look at DCC's potential here in our dividend report.
• In light of our recent valuation report, it seems possible that DCC is trading behind its estimated value.

Halfords Group (LSE:HFD)

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

Overview: Halfords Group plc, with a market cap of £326.33 million, operates in the United Kingdom offering motoring and cycling products and services through its subsidiaries.

Operations: Halfords Group plc generates revenue from two main segments: Retail (£997.10 million) and Autocentres (£699.40 million).

Dividend Yield: 5.4%

Halfords Group's dividend yield of 5.35% places it in the top 25% of UK dividend payers. Despite a payout ratio of 60%, dividends are well-covered by both earnings and cash flows, with a cash payout ratio of just 14.3%. However, the company has an unstable dividend track record over the past decade. Recent earnings showed sales growth to £1.70 billion, but net income declined to £16.9 million from £28.1 million last year.

• Dive into the specifics of Halfords Group here with our thorough dividend report.
• Our expertly prepared valuation report Halfords Group implies its share price may be lower than expected.

ME Group International (LSE:MEGP)

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

Overview: ME Group International plc operates, sells, and services a range of instant-service equipment in the United Kingdom and has a market cap of £722.43 million.

Operations: ME Group International plc generates £304.20 million in revenue from its Personal Services segment.

Dividend Yield: 4.1%

ME Group International's interim dividend increased by 16.2% to 3.45 pence per share, returning £13 million to shareholders. Recent earnings showed sales growth to £150.36 million and net income of £22.63 million for H1 2024. The dividend is covered by earnings (payout ratio: 56.1%) and cash flows (cash payout ratio: 87.4%). However, the company's dividend track record has been volatile over the past decade, with significant insider selling in recent months.

• Click here and access our complete dividend analysis report to understand the dynamics of ME Group International.
• Our valuation report here indicates ME Group International may be undervalued.

Next Steps

• Click through to start exploring the rest of the 56 Top UK Dividend Stocks now.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com