Top Dividend Stocks On UK Exchange October 2024

The United Kingdom's stock market has recently been influenced by global economic challenges, with the FTSE 100 index experiencing declines due to weak trade data from China. As investors navigate these turbulent waters, dividend stocks can offer a measure of stability and income, making them an attractive option for those seeking reliable returns amidst uncertain market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.73%	★★★★★★
4imprint Group (LSE:FOUR)	3.29%	★★★★★☆
Keller Group (LSE:KLR)	3.05%	★★★★★☆
OSB Group (LSE:OSB)	8.53%	★★★★★☆
Plus500 (LSE:PLUS)	5.96%	★★★★★☆
Man Group (LSE:EMG)	5.55%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.61%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.87%	★★★★★☆
NWF Group (AIM:NWF)	4.98%	★★★★★☆
Grafton Group (LSE:GFTU)	3.61%	★★★★★☆

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.

NWF Group (AIM:NWF)

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

Overview: NWF Group plc, with a market cap of £80.36 million, primarily operates in the sale and distribution of fuel oils in the United Kingdom through its subsidiaries.

Operations: NWF Group plc generates its revenue from three main segments: Fuels (£684.90 million), Feeds (£195.10 million), and Food (£77.80 million).

Dividend Yield: 5%

NWF Group has consistently increased its dividend for 13 years, with a recent 3.8% rise to a total of 8.1 pence per share for the year. The payout ratio of 44% and cash payout ratio of 37.8% indicate dividends are well-covered by earnings and cash flows, suggesting sustainability. Despite trading below estimated fair value, NWF's dividend yield is slightly lower than top UK payers but remains reliable and stable over the past decade.

• Click to explore a detailed breakdown of our findings in NWF Group's dividend report.
• Insights from our recent valuation report point to the potential undervaluation of NWF Group shares in the market.

Solid State (AIM:SOLI)

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

Overview: Solid State plc, with a market cap of £149.22 million, designs, manufactures, and supplies electronic equipment across the United Kingdom, Europe, Asia, North America, and other international markets.

Operations: Solid State plc generates revenue through its Systems Division, which accounts for £103.47 million, and its Components Division, contributing £59.83 million.

Dividend Yield: 8.2%

Solid State's dividend yield of 8.19% ranks among the top 25% in the UK, but its sustainability is questionable due to a high cash payout ratio of 150.6%. While dividends have been stable and growing over the past decade, they are not well covered by free cash flow despite a low payout ratio of 27.6%. Recent earnings growth of 32.6% highlights strong performance, yet significant insider selling raises concerns about future stability.

• Click here and access our complete dividend analysis report to understand the dynamics of Solid State.
• In light of our recent valuation report, it seems possible that Solid State is trading beyond its estimated value.

ME Group International (LSE:MEGP)

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

Overview: ME Group International plc operates, sells, and services a range of instant-service equipment in the United Kingdom with a market cap of £730.71 million.

Operations: ME Group International plc generates revenue from its Personal Services segment, totaling £304.20 million.

Dividend Yield: 4.1%

ME Group International's recent interim dividend increase of 16.2% to 3.45 pence per share, returning £13 million to shareholders, signals a positive outlook for income investors despite its historically volatile dividends. The payout is covered by both earnings and cash flow with ratios of 56.1% and 87.4%, respectively, though the cash coverage suggests some caution is warranted. Recent earnings growth and strategic partnerships further support potential dividend sustainability amidst moderate yield levels in the UK market.

• Delve into the full analysis dividend report here for a deeper understanding of ME Group International.
• According our valuation report, there's an indication that ME Group International's share price might be on the cheaper side.

Make It Happen

• Unlock more gems! Our Top UK Dividend Stocks screener has unearthed 57 more companies for you to explore.Click here to unveil our expertly curated list of 60 Top UK Dividend Stocks.
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Ready For A Different Approach?

• 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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