3 UK Dividend Stocks Yielding Up To 4.9%

The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China and broader global economic uncertainties. Despite these challenges, dividend stocks can offer a reliable income stream for investors looking to navigate volatile markets. In this article, we explore three UK dividend stocks yielding up to 4.9%, highlighting their potential to provide stable returns amidst current market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.62%	★★★★★★
Shoe Zone (AIM:SHOE)	9.94%	★★★★★☆
4imprint Group (LSE:FOUR)	3.31%	★★★★★☆
OSB Group (LSE:OSB)	8.53%	★★★★★☆
Impax Asset Management Group (AIM:IPX)	7.29%	★★★★★☆
Plus500 (LSE:PLUS)	5.83%	★★★★★☆
Man Group (LSE:EMG)	5.74%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.56%	★★★★★☆
DCC (LSE:DCC)	3.80%	★★★★★☆
NWF Group (AIM:NWF)	5.11%	★★★★★☆

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

Let's uncover some gems from our specialized screener.

Arbuthnot Banking Group (AIM:ARBB)

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

Overview: Arbuthnot Banking Group PLC, with a market cap of £152.23 million, offers private and commercial banking products and services in the United Kingdom through its subsidiaries.

Operations: Arbuthnot Banking Group PLC's revenue segments include Wealth Management (£12.32 million), Asset Alliance Group (£14.81 million), Renaissance Asset Finance (£9.42 million), Arbuthnot Commercial Asset Based Lending (£16.03 million), and other divisions contributing £19.82 million, with a segment adjustment of £108.98 million.

Dividend Yield: 5%

Arbuthnot Banking Group's dividend payments have been volatile and unreliable over the past decade, despite recent increases. The company reported a decline in net income to £15.44 million for H1 2024 from £19.97 million a year ago. With a low payout ratio of 24.9%, dividends are well covered by earnings and forecasted to remain sustainable with future coverage expected at 27.9%. However, the bank faces challenges with high bad loans at 4.2%.

• Get an in-depth perspective on Arbuthnot Banking Group's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Arbuthnot Banking Group's share price might be too pessimistic.

Brooks Macdonald Group (AIM:BRK)

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

Overview: Brooks Macdonald Group plc, with a market cap of £305.81 million, offers 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.

Operations: Brooks Macdonald Group plc generates revenue through its International segment, which contributed £19.77 million, and a Segment Adjustment of £113.85 million.

Dividend Yield: 4.1%

Brooks Macdonald Group's recent appointment of Katherine Jones as CFO and Executive Director reflects a strategic move to strengthen leadership. Despite a 4% increase in total dividends to 78.0 pence, the company's profit margins have declined significantly from last year. While dividends are stable and growing, they are not well covered by earnings due to a high payout ratio of 178.3%. However, cash flows adequately cover dividend payments with a low cash payout ratio of 35.5%.

• Take a closer look at Brooks Macdonald Group's potential here in our dividend report.
• According our valuation report, there's an indication that Brooks Macdonald Group's share price might be on the expensive side.

Whitbread (LSE:WTB)

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

Overview: Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally, with a market cap of £5.65 billion.

Operations: Whitbread plc generates revenue of £2.96 billion from its Accommodation and Food & Beverage segments.

Dividend Yield: 3.1%

Whitbread's dividend payments are well covered by earnings (60.3%) and cash flows (46.9%), though the yield is relatively low at 3.07% compared to top UK dividend payers. Despite a history of volatile dividends, recent increases suggest some stability. The stock trades at a favorable price-to-earnings ratio of 18.1x, below the industry average of 23.4x, and analysts expect a price rise of 25.7%. Earnings grew by 11.8% last year, indicating strong performance potential.

• Unlock comprehensive insights into our analysis of Whitbread stock in this dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Whitbread shares in the market.

Next Steps

• Navigate through the entire inventory of 60 Top UK Dividend Stocks here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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.

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