Top UK Dividend Stocks To Watch In November 2024

As the London markets grapple with global economic challenges, including weak trade data from China affecting the FTSE 100, investors are increasingly looking for stability amidst volatility. In such an environment, dividend stocks can offer a reliable income stream and potential resilience against market fluctuations, making them particularly appealing to those seeking steady returns.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	6.06%	★★★★★★
Impax Asset Management Group (AIM:IPX)	7.95%	★★★★★☆
OSB Group (LSE:OSB)	8.56%	★★★★★☆
Man Group (LSE:EMG)	6.25%	★★★★★☆
Plus500 (LSE:PLUS)	6.34%	★★★★★☆
DCC (LSE:DCC)	3.96%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.73%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.97%	★★★★★☆
Grafton Group (LSE:GFTU)	3.68%	★★★★★☆
Pets at Home Group (LSE:PETS)	4.51%	★★★★★☆

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.

Capital (LSE:CAPD)

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

Overview: Capital Limited, along with its subsidiaries, offers a range of drilling solutions to clients in the minerals industry and has a market cap of £167.60 million.

Operations: Capital Limited generates revenue of $333.59 million from its Business Services segment, which provides various drilling solutions to the minerals industry.

Dividend Yield: 3.5%

Capital Limited offers a dividend yield of 3.55%, which is low compared to the UK's top dividend payers, but its dividends are well covered by earnings and cash flows with payout ratios of 26.1% and 24% respectively. Despite an unstable dividend track record, recent payments have increased over the past decade. The stock trades significantly below estimated fair value, suggesting potential for capital appreciation alongside sustainable dividends. Revenue guidance for 2024 remains between $355 million to $375 million amidst recent leadership changes.

• Click to explore a detailed breakdown of our findings in Capital's dividend report.
• Our valuation report unveils the possibility Capital's shares may be trading at a discount.

Castings (LSE:CGS)

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

Overview: Castings P.L.C. is involved in iron casting and machining operations across various international markets, with a market cap of £128.20 million.

Operations: The company's revenue is primarily derived from Foundry Operations, which contribute £250.98 million, and Machining Operations, accounting for £37.65 million.

Dividend Yield: 8.6%

Castings offers a high dividend yield of 8.58%, placing it in the top 25% of UK dividend payers, though not well covered by free cash flows due to a 100.4% cash payout ratio. Despite this, dividends are reliably covered by earnings with a payout ratio of 47.6%. The company has maintained stable and growing dividends over the past decade, although earnings are forecast to decline annually by 11.5% over the next three years amidst recent board changes.

• Navigate through the intricacies of Castings with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Castings shares in the market.

Paragon Banking Group (LSE:PAG)

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

Overview: Paragon Banking Group PLC offers financial products and services in the United Kingdom, with a market cap of £1.44 billion.

Operations: Paragon Banking Group PLC's revenue is primarily derived from Mortgage Lending at £281.30 million and Commercial Lending at £133.70 million.

Dividend Yield: 5.6%

Paragon Banking Group's dividend history shows volatility and unreliability over the past decade, with payments not consistently growing. Despite a lower yield of 5.57% compared to top UK payers, dividends are well-covered by earnings (43%) and cash flows (3.3%). Trading at 59.9% below estimated fair value, it offers good relative value in its sector. Recent profit margins have declined significantly from last year, indicating potential challenges ahead for sustaining dividend growth.

• Click here to discover the nuances of Paragon Banking Group with our detailed analytical dividend report.
• According our valuation report, there's an indication that Paragon Banking Group's share price might be on the cheaper side.

Make It Happen

• Take a closer look at our Top UK Dividend Stocks list of 58 companies by clicking here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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Searching for a Fresh Perspective?

• 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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