3 UK Dividend Stocks To Watch With Up To 5.7% Yield

The United Kingdom's FTSE 100 index recently experienced a downturn, influenced by weak trade data from China, which has raised concerns about global economic recovery. In such uncertain market conditions, dividend stocks can offer a measure of stability and income potential for investors seeking to navigate the volatility.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.

Here we highlight a subset of our preferred stocks 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, Europe, Hong Kong, and other international markets with a market cap of £243.56 million.

Operations: Hargreaves Services Plc generates revenue primarily from its Services segment (£247.69 million) and Hargreaves Land (£20.08 million).

Dividend Yield: 5%

Hargreaves Services has shown a modest increase in its dividend, with a recommended final dividend of 18.5 pence for the year ended May 31, 2025. Despite an unstable history, dividends are currently covered by earnings and cash flows, with payout ratios at 82.5% and 47.2%, respectively. Recent earnings growth of 20.2% supports this coverage. However, its yield remains below top-tier UK dividend payers, and the stock trades below estimated fair value by approximately 12%.

• Dive into the specifics of Hargreaves Services here with our thorough dividend report.
• Our expertly prepared valuation report Hargreaves Services implies its share price may be too high.

Next 15 Group (AIM:NFG)

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

Overview: Next 15 Group plc, with a market cap of £279.06 million, provides customer insight, delivery, engagement, and business transformation services across the United Kingdom, Africa, the United States, Europe, Middle East, and Africa.

Operations: Next 15 Group's revenue is primarily derived from its Customer Engagement (£340.56 million), Customer Delivery (£171.19 million), Business Transformation (£144.19 million), and Customer Insight (£73.87 million) segments.

Dividend Yield: 5.6%

Next 15 Group's dividend payments have been volatile over the past decade, but they are well covered by both earnings and cash flows, with payout ratios of 39% and 22.7%, respectively. Despite a top-tier dividend yield of 5.55%, its share price has experienced significant volatility recently. The company trades at a substantial discount to estimated fair value, although recent board changes could impact future stability and strategy execution.

• Click here to discover the nuances of Next 15 Group with our detailed analytical dividend report.
• Our valuation report here indicates Next 15 Group may be undervalued.

Pharos Energy (LSE:PHAR)

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

Overview: Pharos Energy plc is an independent energy company engaged in the exploration, development, and production of oil and gas properties in Vietnam and Egypt, with a market cap of £86.49 million.

Operations: Pharos Energy generates revenue from its operations in Egypt and Southeast Asia, amounting to $20.70 million and $115.40 million respectively.

Dividend Yield: 5.7%

Pharos Energy's dividend payments have been volatile over the past decade, yet they are well covered by earnings and cash flows with payout ratios of 26.8% and 21.8%, respectively. Offering a top-tier yield of 5.74%, the stock trades at a significant discount to its estimated fair value. Recent developments include a board change with João Saraiva e Silva as Non-Executive Chair, potentially influencing strategic direction amidst stable production guidance for 2025.

• Click to explore a detailed breakdown of our findings in Pharos Energy's dividend report.
• According our valuation report, there's an indication that Pharos Energy's share price might be on the cheaper side.

Turning Ideas Into Actions

• Take a closer look at our Top UK Dividend Stocks list of 56 companies by clicking here.
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Ready For A Different Approach?

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• 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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