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3 UK Dividend Stocks With Yields Up To 7.0%
Reviewed by Simply Wall St
As the UK market navigates through political uncertainties and economic forecasts, investors may find solace in dividend stocks, known for offering potential income stability amidst volatility. Given the current market dynamics, a good dividend stock typically features robust fundamentals and a history of resilient payouts, making it an attractive option for those seeking to mitigate risk while aiming for returns.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| James Latham (AIM:LTHM) | 5.94% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.23% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.72% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 6.90% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 5.79% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.48% | ★★★★★☆ |
| Rio Tinto Group (LSE:RIO) | 6.17% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.66% | ★★★★★☆ |
| Grafton Group (LSE:GFTU) | 3.52% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 6.32% | ★★★★★☆ |
Click here to see the full list of 54 stocks from our Top UK Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Brooks Macdonald Group (AIM:BRK)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Brooks Macdonald Group plc offers investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees primarily in the UK, Isle of Man, and Channel Islands, with a market capitalization of approximately £320.93 million.
Operations: Brooks Macdonald Group plc generates £19.62 million in revenue from its international operations.
Dividend Yield: 3.8%
Brooks Macdonald Group's dividend sustainability is questionable with a high payout ratio of 162.6%, indicating dividends are not well covered by earnings, despite a low cash payout ratio of 34.2% suggesting better coverage by cash flows. Dividends have been stable and reliable over the past decade, but recent profit margins have declined to 5.1% from last year's 17.9%. The dividend yield stands at 3.78%, lower than the top UK dividend payers' average of 5.49%. Recent executive changes include Andrea Montague's appointment as CEO starting October 2024, following Andrew Shepherd’s retirement.
- Dive into the specifics of Brooks Macdonald Group here with our thorough dividend report.
- Upon reviewing our latest valuation report, Brooks Macdonald Group's share price might be too optimistic.
Hargreaves Services (AIM:HSP)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Hargreaves Services Plc operates in environmental and industrial services across the United Kingdom, Southeast Asia, and South Africa, with a market capitalization of approximately £187 million.
Operations: Hargreaves Services Plc generates revenue primarily through its Services segment, which contributed £205.29 million, and a smaller portion from Hargreaves Land at £2.58 million.
Dividend Yield: 6.3%
Hargreaves Services exhibits a mixed dividend profile. With a Price-To-Earnings ratio of 14.8x, it is below the UK market average of 17x, suggesting reasonable valuation. Its dividend yield at 6.32% ranks in the top quartile of UK payers. Dividends are supported by both earnings and cash flows, with payout ratios at 61.8% and cash payout at 53.8%, respectively, indicating sustainability despite past volatility in payments and a recent drop in profit margins from last year's 18.2% to this year's 6.2%. Revenue growth is projected at an annual rate of 6.1%.
- Navigate through the intricacies of Hargreaves Services with our comprehensive dividend report here.
- The analysis detailed in our Hargreaves Services valuation report hints at an inflated share price compared to its estimated value.
Somero Enterprises (AIM:SOM)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Somero Enterprises, Inc. specializes in designing, assembling, remanufacturing, selling, and distributing concrete leveling and contouring equipment globally, with a market capitalization of approximately £184.40 million.
Operations: Somero Enterprises generates its revenue primarily from the construction machinery and equipment segment, amounting to $120.70 million.
Dividend Yield: 7.0%
Somero Enterprises has experienced fluctuating dividend payments over the last decade, signaling potential concerns for those seeking stable income. However, the dividends are sustainably covered by both earnings and cash flows, with a payout ratio of 46.2% and a cash payout ratio of 74.2%. Recently, Jesse Aho's appointment as COO could influence operational efficiency and product innovation. Trading at 40.9% below estimated fair value and offering a high yield of 7.03%, it remains attractive despite its instability in dividend history.
- Click here to discover the nuances of Somero Enterprises with our detailed analytical dividend report.
- The valuation report we've compiled suggests that Somero Enterprises' current price could be quite moderate.
Make It Happen
- Click here to access our complete index of 54 Top UK Dividend Stocks.
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Contemplating Other Strategies?
- 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.
Valuation is complex, but we're helping make it simple.
Find out whether Brooks Macdonald Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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About AIM:BRK
Brooks Macdonald Group
Through its subsidiaries, provides a range of investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the United Kingdom, Isle of Man, and the Channel Islands.
