3 UK Dividend Stocks With Yields Up To 5.4%

The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting global economic interdependencies. In such volatile conditions, dividend stocks can offer investors a measure of stability and income potential by providing regular payouts even when broader markets face headwinds.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	6.06%	★★★★★★
Keller Group (LSE:KLR)	3.21%	★★★★★☆
4imprint Group (LSE:FOUR)	3.26%	★★★★★☆
OSB Group (LSE:OSB)	8.42%	★★★★★☆
Man Group (LSE:EMG)	6.06%	★★★★★☆
Plus500 (LSE:PLUS)	6.19%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.09%	★★★★★☆
Grafton Group (LSE:GFTU)	3.83%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.90%	★★★★★☆
DCC (LSE:DCC)	3.51%	★★★★★☆

Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.

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

Vertu Motors (AIM:VTU)

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

Overview: Vertu Motors plc is an automotive retailer in the United Kingdom with a market cap of £196.53 million.

Operations: The company generates revenue from its operations in the United Kingdom primarily through its Retail - Gasoline & Auto Dealers segment, which accounts for £4.79 billion.

Dividend Yield: 4%

Vertu Motors' dividend payments have been volatile and unreliable over the past decade, despite a low payout ratio of 41.8% and cash payout ratio of 17.6%, indicating dividends are well covered by earnings and cash flows. The company's recent buyback program, funded with existing cash resources, suggests a focus on shareholder returns. However, significant insider selling and declining profit margins could be concerning for dividend stability. Its current yield is below the top tier in the UK market.

• Click to explore a detailed breakdown of our findings in Vertu Motors' dividend report.
• Our expertly prepared valuation report Vertu Motors implies its share price may be lower than expected.

Ocean Wilsons Holdings (LSE:OCN)

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

Overview: Ocean Wilsons Holdings Limited is an investment holding company providing maritime and logistics services in Brazil, with a market cap of £438.50 million.

Operations: Ocean Wilsons Holdings Limited generates revenue of $519.35 million from its maritime services in Brazil.

Dividend Yield: 5.5%

Ocean Wilsons Holdings offers a stable dividend history with consistent growth over the past decade, supported by a low payout ratio of 48.7% and cash payout ratio of 26.6%, ensuring dividends are well covered by earnings and cash flows. Despite a lower yield of 5.46% compared to top-tier UK payers, its price-to-earnings ratio of 8.9x suggests good value relative to the broader market, while earnings growth remains robust at 32.7% over the past year.

• Dive into the specifics of Ocean Wilsons Holdings here with our thorough dividend report.
• Upon reviewing our latest valuation report, Ocean Wilsons Holdings' share price might be too optimistic.

SThree (LSE:STEM)

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

Overview: SThree plc offers specialist recruitment services in the STEM fields across various countries including the UK, Europe, the US, and Asia, with a market cap of £466.07 million.

Operations: SThree plc's revenue is segmented as follows: £318.74 million from the USA, £490.18 million from DACH, £384.35 million from the Rest of Europe, £42.03 million from the Middle East & Asia, and £366.06 million from the Netherlands (including Spain).

Dividend Yield: 4.8%

SThree's dividend payments are well-supported by earnings and cash flows, with a payout ratio of 39.2% and a cash payout ratio of 42.4%. Despite being below the top UK dividend yields, its dividends have grown over the past decade. However, they have been unstable, experiencing volatility with drops exceeding 20% annually at times. Currently trading at a discount to estimated fair value, SThree shows potential for price appreciation according to analysts' consensus forecasts.

• Click here to discover the nuances of SThree with our detailed analytical dividend report.
• Our valuation report here indicates SThree may be undervalued.

Seize The Opportunity

• Investigate our full lineup of 61 Top UK Dividend Stocks right here.
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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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