Stock Analysis

Top UK Dividend Stocks Yielding Up To 4.5%

AIM:MPE
Source: Shutterstock

Over the last 7 days, the United Kingdom market has remained flat, yet it has shown an impressive rise of 11% over the past year. As earnings are forecast to grow by 14% annually, identifying strong dividend stocks can be a strategic way to capitalize on this growth while securing steady income.

Top 10 Dividend Stocks In The United Kingdom

NameDividend YieldDividend Rating
James Latham (AIM:LTHM)5.71%★★★★★★
4imprint Group (LSE:FOUR)3.06%★★★★★☆
OSB Group (LSE:OSB)8.58%★★★★★☆
Impax Asset Management Group (AIM:IPX)6.80%★★★★★☆
Man Group (LSE:EMG)6.12%★★★★★☆
Dunelm Group (LSE:DNLM)6.55%★★★★★☆
Plus500 (LSE:PLUS)6.17%★★★★★☆
DCC (LSE:DCC)3.82%★★★★★☆
Big Yellow Group (LSE:BYG)3.70%★★★★★☆
Grafton Group (LSE:GFTU)3.45%★★★★★☆

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

Let's explore several standout options from the results in the screener.

Helios Underwriting (AIM:HUW)

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

Overview: Helios Underwriting plc, along with its subsidiaries, offers limited liability investment opportunities in the Lloyd's insurance market in the UK and has a market capitalization of £133.41 million.

Operations: Helios Underwriting plc generates revenue primarily through its Syndicate Participation (£258.32 million) and Investment Management (£4.62 million) segments within the Lloyd’s insurance market in the UK.

Dividend Yield: 3.2%

Helios Underwriting's dividend payments have been volatile over the past decade, with a current yield of 3.21%, below the top UK payers. Despite this, dividends are well-covered by earnings and cash flows, with payout ratios of 25.3% and 8.2%, respectively. The company reported strong growth in earnings for the half-year ending June 2024, alongside strategic board appointments and share buybacks totaling £3.7 million to enhance shareholder value.

AIM:HUW Dividend History as at Oct 2024
AIM:HUW Dividend History as at Oct 2024

M.P. Evans Group (AIM:MPE)

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

Overview: M.P. Evans Group PLC, with a market cap of £490.81 million, is involved in the ownership and development of oil palm plantations in Indonesia and Malaysia through its subsidiaries.

Operations: M.P. Evans Group PLC generates its revenue primarily from its plantation operations in Indonesia, amounting to $336.59 million.

Dividend Yield: 4.6%

M.P. Evans Group's dividend payments have been volatile over the past decade, with a yield of 4.57%, below the top UK dividend payers. Despite this, dividends are well-covered by earnings and cash flows, with payout ratios of 48.9% and 33.3%, respectively. Recent earnings showed significant growth, supporting a 20% increase in interim dividends to £0.15 per share, reflecting improved financial results and management's confidence in long-term prospects amidst ongoing acquisition strategies.

AIM:MPE Dividend History as at Oct 2024
AIM:MPE Dividend History as at Oct 2024

4imprint Group (LSE:FOUR)

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

Overview: 4imprint Group plc operates as a direct marketer of promotional products in North America, the United Kingdom, and Ireland, with a market capitalization of approximately £1.47 billion.

Operations: The company's revenue segments consist of $1.33 billion from North America and $25 million from the UK & Ireland.

Dividend Yield: 3.1%

4imprint Group's interim dividend increased by 23% to £0.627 per share, supported by a payout ratio of 58.1%, indicating strong earnings coverage. The dividend yield stands at 3.06%, which is below the top UK payers but remains reliable and stable over the past decade. Recent earnings growth and strategic financial management, including new CFO appointment, bolster its dividend sustainability despite trading below fair value estimates by analysts who expect price appreciation.

LSE:FOUR Dividend History as at Oct 2024
LSE:FOUR Dividend History as at Oct 2024

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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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