As the UK market grapples with global economic uncertainties, particularly the ripple effects of China's sluggish recovery and its impact on commodity prices, investors are increasingly turning their attention to dividend stocks as a source of stability. In such volatile times, stocks that offer reliable dividends can provide a cushion against market fluctuations while potentially delivering steady income streams.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Treatt (LSE:TET) | 3.46% | ★★★★★☆ |
| Seplat Energy (LSE:SEPL) | 5.41% | ★★★★★☆ |
| RS Group (LSE:RS1) | 4.02% | ★★★★★☆ |
| Pets at Home Group (LSE:PETS) | 6.05% | ★★★★★★ |
| OSB Group (LSE:OSB) | 6.27% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.83% | ★★★★★☆ |
| MONY Group (LSE:MONY) | 6.40% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.25% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 5.80% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.41% | ★★★★★☆ |
Click here to see the full list of 53 stocks from our Top UK Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Hargreaves Services (AIM:HSP)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Hargreaves Services Plc offers environmental and industrial services across the United Kingdom, Europe, Hong Kong, and internationally with a market cap of £210.91 million.
Operations: Hargreaves Services Plc generates its revenue from two main segments: £247.69 million from Services and £20.08 million from Hargreaves Land.
Dividend Yield: 5.8%
Hargreaves Services offers a compelling dividend yield of 5.8%, ranking in the top 25% of UK dividend payers. Despite its attractive yield, the company's dividends have been unreliable and volatile over the past decade, with significant annual drops exceeding 20%. However, dividends are well-covered by both earnings (payout ratio: 82.5%) and cash flows (cash payout ratio: 47.2%). Earnings have shown strong growth recently, increasing by 20.2% last year.
- Dive into the specifics of Hargreaves Services here with our thorough dividend report.
- Insights from our recent valuation report point to the potential overvaluation of Hargreaves Services shares in the market.
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 £2.18 billion.
Operations: Morgan Sindall Group plc generates revenue through its various segments, including Fit Out (£1.51 billion), Construction (£1.05 billion), Infrastructure (£999.30 million), Property Services (£224.30 million), Partnership Housing (£885.40 million), and Mixed Use Partnerships (£57.30 million).
Dividend Yield: 3%
Morgan Sindall Group's dividend yield of 3.01% is below the top UK payers, and its dividends have been unreliable and volatile over the past decade. Despite this, dividends are well-covered by earnings (43.1% payout ratio) and cash flows (50.5% cash payout ratio). The company trades at a favorable price-to-earnings ratio of 14.3x compared to the market average, although significant insider selling has occurred recently, and earnings are forecast to decline in the coming years.
- Click to explore a detailed breakdown of our findings in Morgan Sindall Group's dividend report.
- The analysis detailed in our Morgan Sindall Group valuation report hints at an deflated share price compared to its estimated value.
SThree (LSE:STEM)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: SThree plc is a specialist recruitment services provider focusing on the sciences, technology, engineering, and mathematics sectors across various international markets including the UK, Europe, the US, and parts of Asia and the Middle East with a market cap of £200.73 million.
Operations: SThree plc generates revenue from several geographic segments, with the USA contributing £285.13 million, DACH (Germany, Austria, and Switzerland) providing £422.24 million, Rest of Europe accounting for £320.10 million, Middle East & Asia bringing in £40.00 million, and Netherlands (including Spain) adding £310.85 million.
Dividend Yield: 9.1%
SThree's dividend yield of 9.05% ranks among the top UK payers but has been unreliable and volatile over the past decade. The dividend is covered by earnings with a payout ratio of 65.1%, yet it isn't well-supported by cash flows, indicated by a high cash payout ratio of 147.9%. Recent trading results show declining net fees (£81.5 million from £92.7 million), reflecting potential challenges in sustaining dividends amid share price volatility and reduced profit margins (2.1% vs 3.5%).
- Click here and access our complete dividend analysis report to understand the dynamics of SThree.
- Our expertly prepared valuation report SThree implies its share price may be lower than expected.
Summing It All Up
- Explore the 53 names from our Top UK Dividend Stocks screener 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.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Searching for a Fresh Perspective?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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.
Valuation is complex, but we're here to simplify it.
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