3 UK Dividend Stocks Yielding Up To 6%

The United Kingdom's FTSE 100 index has recently faced downward pressure, influenced by weak trade data from China and a sluggish global economic outlook. In such uncertain market conditions, dividend stocks can provide a reliable income stream and potential for capital appreciation. Here are three UK dividend stocks yielding up to 6% that may offer stability in these volatile times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.97%	★★★★★★
4imprint Group (LSE:FOUR)	3.12%	★★★★★☆
Impax Asset Management Group (AIM:IPX)	7.62%	★★★★★☆
Man Group (LSE:EMG)	5.71%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.61%	★★★★★☆
Plus500 (LSE:PLUS)	5.76%	★★★★★☆
DCC (LSE:DCC)	3.71%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.23%	★★★★★☆
NWF Group (AIM:NWF)	4.91%	★★★★★☆
Grafton Group (LSE:GFTU)	3.34%	★★★★★☆

Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Hargreaves Services (AIM:HSP)

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

Overview: Hargreaves Services Plc offers environmental and industrial services across the United Kingdom, Southeast Asia, and South Africa with a market cap of £195.46 million.

Operations: Hargreaves Services Plc generates revenue from its Services segment (£206.86 million) and Hargreaves Land segment (£7.04 million).

Dividend Yield: 6.1%

Hargreaves Services' dividend yield of 6.06% places it in the top quartile of UK dividend payers, but its sustainability is questionable with a high payout ratio of 94.8% and volatile dividends over the past decade. Despite recent earnings decline to £12.28 million from £27.92 million, the company announced a substantial final dividend increase to 18 pence per share for 2024, contingent on AGM approval, reflecting improved cash flow management despite lower profit margins.

• Click here and access our complete dividend analysis report to understand the dynamics of Hargreaves Services.
• According our valuation report, there's an indication that Hargreaves Services' share price might be on the expensive side.

4imprint Group (LSE:FOUR)

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

Overview: 4imprint Group plc, with a market cap of £1.48 billion, operates as a direct marketer of promotional products in North America, the United Kingdom, and Ireland.

Operations: 4imprint Group plc generates revenue of $25 million in the UK and Ireland and $1.33 billion in North America.

Dividend Yield: 3.1%

4imprint Group's recent earnings report showed a rise in sales to US$667.5 million and net income to US$54.7 million for the half year ended June 29, 2024. The company declared an interim dividend of 80 cents per share, up from 65 cents last year, with dividends consistently growing over the past decade. With a payout ratio of 58.1%, dividends are well-covered by earnings and cash flows, although its yield of 3.12% is below top-tier UK dividend payers.

• Take a closer look at 4imprint Group's potential here in our dividend report.
• Our valuation report here indicates 4imprint Group may be undervalued.

Pets at Home Group (LSE:PETS)

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

Overview: Pets at Home Group Plc operates as a specialist omnichannel retailer of pet food, related products, and accessories in the United Kingdom with a market cap of £1.40 billion.

Operations: Pets at Home Group Plc generates revenue from two main segments: Retail (£1.33 billion) and Vet Group (£146.50 million).

Dividend Yield: 4.2%

Pets at Home Group Plc reported a modest revenue growth of 1.0% to £441.1 million for the sixteen months ended July 18, 2024, with like-for-like revenue up 0.5%. The company declared a final dividend of 8.3 pence per share for the year ended March 28, 2024. With dividends reliably growing over the past decade and covered by both earnings (77.2% payout ratio) and cash flows (36.2% cash payout ratio), PETS offers stable but not top-tier yields at 4.18%.

• Dive into the specifics of Pets at Home Group here with our thorough dividend report.
• The valuation report we've compiled suggests that Pets at Home Group's current price could be quite moderate.

Make It Happen

• Reveal the 58 hidden gems among our Top UK Dividend Stocks screener with a single click here.
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Curious About Other Options?

• 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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