Top 3 UK Dividend Stocks For Your Portfolio

As the FTSE 100 index experiences fluctuations due to weak trade data from China and global economic pressures, UK investors are closely monitoring the market's response. In such uncertain times, dividend stocks can offer a measure of stability and income potential, making them an attractive consideration for those looking to navigate these challenging conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
WPP (LSE:WPP)	6.60%	★★★★★★
Man Group (LSE:EMG)	7.49%	★★★★★☆
4imprint Group (LSE:FOUR)	5.12%	★★★★★☆
Keller Group (LSE:KLR)	3.18%	★★★★★☆
Treatt (LSE:TET)	3.27%	★★★★★☆
NWF Group (AIM:NWF)	5.00%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.41%	★★★★★☆
OSB Group (LSE:OSB)	7.00%	★★★★★☆
James Latham (AIM:LTHM)	6.87%	★★★★★☆
Grafton Group (LSE:GFTU)	3.67%	★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Begbies Traynor Group (AIM:BEG)

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

Overview: Begbies Traynor Group plc offers professional services to businesses, advisors, large corporations, and financial institutions in the UK with a market cap of £152.20 million.

Operations: Begbies Traynor Group plc generates revenue through its Property Advisory segment (£44.96 million) and Business Recovery and Advisory segment (£102.18 million) in the United Kingdom.

Dividend Yield: 4.3%

Begbies Traynor Group's dividend payments, though reliable and growing over the past decade, are not well covered by earnings due to a high payout ratio of 265.4%. However, with a cash payout ratio of 72.7%, dividends are supported by cash flows. Despite trading at a significant discount to estimated fair value, the dividend yield of 4.3% is lower than the top UK payers. Earnings have shown substantial growth recently but include large one-off items affecting quality.

• Take a closer look at Begbies Traynor Group's potential here in our dividend report.
• Our valuation report unveils the possibility Begbies Traynor Group's shares may be trading at a discount.

Johnson Matthey (LSE:JMAT)

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

Overview: Johnson Matthey Plc operates in clean air, catalyst and hydrogen technology, and platinum group metals services across various regions including the UK, Europe, North America, and Asia with a market cap of £2.27 billion.

Operations: Johnson Matthey Plc's revenue segments include Clean Air (£4.47 billion), PGM Services (£8.36 billion), Value Businesses (£224 million), Catalyst Technologies (£689 million), and Hydrogen Technologies (£65 million).

Dividend Yield: 5.7%

Johnson Matthey's dividend yield of 5.68% ranks among the top UK payers, yet its sustainability is questionable due to a lack of free cash flows and unreliable past payments. Despite a low payout ratio of 26.6%, earnings are insufficient to cover dividends, with forecasts indicating a decline in profitability by an average of 28.4% annually over three years. The stock trades at a significant discount to fair value but faces challenges from volatile earnings impacted by large one-off items.

• Navigate through the intricacies of Johnson Matthey with our comprehensive dividend report here.
• Our expertly prepared valuation report Johnson Matthey implies its share price may be lower than expected.

Ninety One Group (LSE:N91)

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

Overview: Ninety One Group is an independent global asset manager with operations worldwide and a market cap of £1.40 billion.

Operations: Ninety One Group generates revenue primarily through its Investment Management Business, which reported £584.50 million.

Dividend Yield: 7.4%

Ninety One Group offers a high dividend yield of 7.38%, placing it in the top quartile of UK dividend payers. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 67.9% and 54.9%, respectively, indicating sustainability despite only five years of payments without growth. Trading below fair value enhances its appeal, while a £30 million share buyback plan could support shareholder value but does not address the lack of dividend growth history.

• Click here to discover the nuances of Ninety One Group with our detailed analytical dividend report.
• According our valuation report, there's an indication that Ninety One Group's share price might be on the cheaper side.

Seize The Opportunity

• Investigate our full lineup of 60 Top UK Dividend Stocks right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready To Venture Into Other Investment Styles?

• 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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