3 High Yielding UK Dividend Stocks With Up To 7.6% Yield

The UK market is showing signs of resilience, with the FTSE 100 poised to break a two-day losing streak amid broader global economic optimism and significant financial events. In this context, dividend stocks continue to be a compelling option for investors looking for income-generating investments in a landscape marked by legislative changes and monetary policy anticipations.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.94%	★★★★★★
Keller Group (LSE:KLR)	3.14%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.94%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.67%	★★★★★☆
Plus500 (LSE:PLUS)	5.71%	★★★★★☆
DCC (LSE:DCC)	3.55%	★★★★★☆
Rio Tinto Group (LSE:RIO)	6.41%	★★★★★☆
NWF Group (AIM:NWF)	4.60%	★★★★★☆
Grafton Group (LSE:GFTU)	3.48%	★★★★★☆
Hargreaves Services (AIM:HSP)	6.49%	★★★★★☆

Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.

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

PageGroup (LSE:PAGE)

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

Overview: PageGroup plc operates as a recruitment consultancy offering services across the UK, Europe, the Middle East, Africa, Asia Pacific, and the Americas, with a market capitalization of approximately £1.33 billion.

Operations: PageGroup plc generates its revenue primarily from recruitment services, which amounted to £2.01 billion.

Dividend Yield: 7.6%

PageGroup's dividend yield stands at 7.61%, placing it in the top quartile of UK dividend payers. Despite a volatile history, dividends have grown over the past decade. Currently, dividends are well-supported by earnings and cash flows, with payout ratios at 67.1% and 83.2% respectively. However, profit margins have dipped to 3.8% from last year's 7%. The stock trades below estimated fair value by 10.8%, suggesting potential undervaluation relative to peers.

• Get an in-depth perspective on PageGroup's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of PageGroup shares in the market.

Pets at Home Group (LSE:PETS)

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

Overview: Pets at Home Group Plc is a specialist omnichannel retailer in the UK, offering pet food, related products, and accessories with a market capitalization of approximately £1.41 billion.

Operations: Pets at Home Group Plc generates its revenues primarily through two segments: retail sales amounting to £1.33 billion and veterinary services which contributed £146.50 million.

Dividend Yield: 4.2%

Pets at Home Group's dividend yield of 4.19% trails behind the top UK dividend payers. Despite this, dividends are well-supported, with a stable 10-year growth history and recent reaffirmation at their AGM on July 11, 2024. The firm trades at a significant discount to estimated fair value by 40.3%, indicating potential undervaluation. Dividends are financially sustainable, backed by both earnings and cash flows with payout ratios of 77.2% and 36.4%, respectively.

• Take a closer look at Pets at Home Group's potential here in our dividend report.
• Our comprehensive valuation report raises the possibility that Pets at Home Group is priced lower than what may be justified by its financials.

Vesuvius (LSE:VSVS)

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

Overview: Vesuvius plc specializes in molten metal flow engineering and technology services for the steel and foundry casting industries globally, with a market capitalization of approximately £1.26 billion.

Operations: Vesuvius plc generates revenue through several segments: £529.80 million from Foundry, £793 million from Steel - Flow Control, £39.10 million from Steel - Sensors & Probes, and £567.90 million from Steel - Advanced Refractories.

Dividend Yield: 4.8%

Vesuvius plc exhibits a mixed dividend profile, marked by a 10-year history of volatility and unreliable growth. Currently, its dividend yield stands at 4.84%, which is below the top quartile of UK dividend payers at 5.48%. However, the dividends appear financially sustainable with a payout ratio of 52.2% and cash payout ratio of 49.3%, indicating that both earnings and cash flows adequately cover distributions. Recent board changes could impact future governance and strategy, as Italia Boninelli joins as Non-executive Director effective June 1, 2024.

• Delve into the full analysis dividend report here for a deeper understanding of Vesuvius.
• The analysis detailed in our Vesuvius valuation report hints at an deflated share price compared to its estimated value.

Turning Ideas Into Actions

• Dive into all 55 of the Top UK Dividend Stocks we have identified here.
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Ready To Venture Into Other Investment Styles?

• 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.

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