3 UK Dividend Stocks To Watch With Up To 6.2% Yield

The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index declining due to weak trade data from China and global economic uncertainties. In such fluctuating conditions, dividend stocks can offer a measure of stability and income potential for investors seeking reliable returns amidst market volatility.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Treatt (LSE:TET)	3.75%	★★★★★☆
Pets at Home Group (LSE:PETS)	5.51%	★★★★★★
OSB Group (LSE:OSB)	6.04%	★★★★★☆
NWF Group (AIM:NWF)	4.97%	★★★★★☆
MONY Group (LSE:MONY)	6.22%	★★★★★★
Keller Group (LSE:KLR)	3.81%	★★★★★☆
IG Group Holdings (LSE:IGG)	4.09%	★★★★★☆
Grafton Group (LSE:GFTU)	4.10%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.44%	★★★★★☆
4imprint Group (LSE:FOUR)	5.01%	★★★★★☆

Click here to see the full list of 54 stocks from our Top UK Dividend Stocks screener.

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

Alumasc Group (AIM:ALU)

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

Overview: The Alumasc Group plc, with a market cap of £123.17 million, manufactures and sells building products, systems, and solutions across various regions including the United Kingdom, Europe, North America, the Middle East, and the Far East.

Operations: Alumasc Group's revenue is derived from three main segments: Water Management (£55.87 million), Building Envelope (£39.16 million), and Housebuilding Products (£15.24 million).

Dividend Yield: 3.2%

Alumasc Group's dividend yield of 3.15% is below the top UK payers, but its payout ratios indicate dividends are well-covered by earnings (40.7%) and cash flows (34.6%). Despite a history of volatility, dividends have grown over the past decade. Recent executive changes include Andrew Barraclough's appointment as Non-Executive Director. Alumasc forecasts a 12% revenue increase to £113 million for FY2025, outperforming UK construction growth rates, suggesting potential stability in future payouts.

• Get an in-depth perspective on Alumasc Group's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Alumasc Group's share price might be too pessimistic.

Eurocell (LSE:ECEL)

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

Overview: Eurocell plc is involved in the manufacture, distribution, and recycling of PVC building products such as windows, doors, and roofline items in the UK and Ireland with a market cap of £149.90 million.

Operations: Eurocell plc's revenue is derived from two main segments: Profiles, contributing £209.80 million, and Building Plastics, contributing £212.30 million.

Dividend Yield: 4.1%

Eurocell's dividend yield of 4.09% is lower than the top UK payers, yet its payout ratios suggest strong coverage by earnings (61.8%) and cash flows (18.1%). Despite past volatility and unreliability in dividend payments, there has been growth over the last decade. The stock trades at a significant discount to its estimated fair value, indicating potential value for investors. Recently, Deloitte LLP replaced PwC as Eurocell's auditor following a competitive tender process.

• Navigate through the intricacies of Eurocell with our comprehensive dividend report here.
• The analysis detailed in our Eurocell valuation report hints at an deflated share price compared to its estimated value.

MONY Group (LSE:MONY)

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

Overview: MONY Group plc, along with its subsidiaries, operates in the United Kingdom offering price comparison and lead generation services through its websites and applications, with a market cap of approximately £1.06 billion.

Operations: MONY Group plc generates its revenue through various segments, including Money (£99.70 million), Travel (£19.30 million), Cashback (£58.20 million), Insurance (£233.40 million), and Home Services (£41 million).

Dividend Yield: 6.2%

MONY Group offers a high dividend yield of 6.22%, placing it among the top UK payers, with stable and growing dividends over the past decade. Its payout ratios show coverage by earnings (81.4%) and cash flows (70.8%), suggesting sustainability. Recent earnings reported slight growth in sales (£225.3M) and net income (£45.9M). An interim dividend of 3.3 pence was declared, reflecting confidence in future prospects, supported by good cash conversion and a strong balance sheet.

• Click here and access our complete dividend analysis report to understand the dynamics of MONY Group.
• In light of our recent valuation report, it seems possible that MONY Group is trading behind its estimated value.

Make It Happen

• Delve into our full catalog of 54 Top UK Dividend Stocks here.
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Ready For A Different Approach?

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• 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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