3 UK Dividend Stocks To Watch With Up To 5.1% Yield

Amidst the recent downturn in the FTSE 100, driven by weak trade data from China and global economic pressures, investors are increasingly seeking stable income sources to weather market volatility. In such an environment, dividend stocks can provide a reliable stream of income, making them an attractive option for those looking to navigate uncertain times with steady returns.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
WPP (LSE:WPP)	6.48%	★★★★★★
Man Group (LSE:EMG)	7.48%	★★★★★☆
4imprint Group (LSE:FOUR)	5.03%	★★★★★☆
DCC (LSE:DCC)	4.16%	★★★★★☆
Treatt (LSE:TET)	3.27%	★★★★★☆
OSB Group (LSE:OSB)	7.11%	★★★★★☆
NWF Group (AIM:NWF)	4.85%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.56%	★★★★★☆
James Latham (AIM:LTHM)	7.08%	★★★★★☆
Grafton Group (LSE:GFTU)	3.72%	★★★★★☆

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

We'll examine a selection from our screener results.

Card Factory (LSE:CARD)

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

Overview: Card Factory plc is a specialist retailer of cards, gifts, and celebration essentials operating in the United Kingdom and internationally, with a market cap of £328.65 million.

Operations: Card Factory plc generates revenue through its segments, with £506.80 million from Cardfactory Stores, £22.20 million from Partnerships, and £13.20 million from Cardfactory Online.

Dividend Yield: 5.1%

Card Factory recently announced a proposed final dividend of 3.6 pence per share, reflecting its commitment to shareholder returns despite a history of volatile dividends. The company's dividends are well covered by both earnings and cash flows, with payout ratios of 34.8% and 23.8%, respectively. However, its dividend yield is below the top tier in the UK market at 5.11%. Trading significantly below estimated fair value suggests potential for capital appreciation alongside dividends.

• Unlock comprehensive insights into our analysis of Card Factory stock in this dividend report.
• Our expertly prepared valuation report Card Factory implies its share price may be lower than expected.

Mears Group (LSE:MER)

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

Overview: Mears Group plc, with a market cap of £337.13 million, provides outsourced services to both public and private sectors across the United Kingdom through its subsidiaries.

Operations: Mears Group generates revenue through its Management segment, which accounts for £576.70 million, and its Maintenance segment, contributing £555.81 million.

Dividend Yield: 4.1%

Mears Group has proposed a final dividend of 11.25 pence per share, increasing the annual total to 16.00 pence, despite a history of volatile dividends. The payout is well covered by earnings and cash flows with ratios of 31.8% and 14.2%, respectively, but its yield is below top UK payers at 4.1%. Recent earnings growth and a significant £230 million contract with Milton Keynes City Council bolster its financial position for future distributions.

• Click to explore a detailed breakdown of our findings in Mears Group's dividend report.
• The analysis detailed in our Mears Group valuation report hints at an deflated share price compared to its estimated value.

Morgan Sindall Group (LSE:MGNS)

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

Overview: Morgan Sindall Group plc is a UK-based construction and regeneration company with a market cap of £1.68 billion.

Operations: Morgan Sindall Group plc generates revenue through several segments, including Fit Out (£1.30 billion), Construction (£1.04 billion), Infrastructure (£1.05 billion), Property Services (£223.20 million), Partnership Housing (£861.20 million), and Mixed Use Partnerships (£90.50 million).

Dividend Yield: 3.7%

Morgan Sindall Group's dividend payments have been volatile over the past decade, yet they have shown growth. The company's recent approval of a 15% increase to a final dividend of 90 pence per share highlights this trend. Although its yield of 3.66% is lower than top UK payers, dividends are well covered by earnings (46.7%) and cash flows (55.6%). With strong earnings growth and a positive outlook for 2025, Morgan Sindall remains positioned for continued distributions.

• Click here and access our complete dividend analysis report to understand the dynamics of Morgan Sindall Group.
• Upon reviewing our latest valuation report, Morgan Sindall Group's share price might be too optimistic.

Summing It All Up

• Take a closer look at our Top UK Dividend Stocks list of 56 companies by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Contemplating Other Strategies?

• 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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