As the FTSE 100 index recently experienced a downturn due to weak trade data from China, concerns about global economic recovery continue to weigh on investor sentiment in the UK market. In such uncertain times, dividend stocks can offer a measure of stability and income, making them an attractive consideration for investors looking to navigate these challenging conditions.
Top 10 Dividend Stocks In The United Kingdom
Name | Dividend Yield | Dividend Rating |
Treatt (LSE:TET) | 3.68% | ★★★★★☆ |
Seplat Energy (LSE:SEPL) | 6.42% | ★★★★★☆ |
Pets at Home Group (LSE:PETS) | 5.76% | ★★★★★★ |
OSB Group (LSE:OSB) | 6.19% | ★★★★★☆ |
NWF Group (AIM:NWF) | 4.97% | ★★★★★☆ |
MONY Group (LSE:MONY) | 6.29% | ★★★★★★ |
Keller Group (LSE:KLR) | 3.88% | ★★★★★☆ |
Grafton Group (LSE:GFTU) | 4.23% | ★★★★★☆ |
Dunelm Group (LSE:DNLM) | 6.61% | ★★★★★☆ |
4imprint Group (LSE:FOUR) | 5.11% | ★★★★★☆ |
Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.
We're going to check out a few of the best picks from our screener tool.
Hargreaves Services (AIM:HSP)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Hargreaves Services Plc operates in the environmental and industrial services sector across the United Kingdom, Europe, Hong Kong, and internationally, with a market cap of £250.55 million.
Operations: Hargreaves Services Plc generates revenue from its Services segment amounting to £247.69 million and Hargreaves Land segment contributing £20.08 million.
Dividend Yield: 4.9%
Hargreaves Services has shown a modest increase in its full-year dividend to 37.0 pence, supported by earnings growth of 20.2% and a payout ratio of 82.5%. The dividend is well-covered by cash flows, with a cash payout ratio of 47.2%, though its yield remains below the top quartile in the UK market. Despite recent growth, Hargreaves' dividends have been volatile over the past decade, raising concerns about long-term reliability for income-focused investors.
- Click to explore a detailed breakdown of our findings in Hargreaves Services' dividend report.
- Insights from our recent valuation report point to the potential overvaluation of Hargreaves Services shares in the market.
Next 15 Group (AIM:NFG)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Next 15 Group plc operates in the United Kingdom, Africa, the United States, Europe, Middle East, and Africa providing customer insight, delivery, engagement, and business transformation services with a market cap of £270.98 million.
Operations: Next 15 Group plc generates revenue through its segments: Customer Engage (£340.56 million), Customer Insight (£73.87 million), Customer Delivery (£171.19 million), and Business Transformation (£144.19 million).
Dividend Yield: 5.7%
Next 15 Group's dividend yield ranks in the top quartile of UK payers, but its history shows volatility and unreliability over the past decade. Despite this, dividends are well-covered by earnings and cash flows with payout ratios of 39% and 22.7%, respectively. Recent board changes include appointing Samuel Thomas James Knights as Director following multiple terminations. The stock trades significantly below estimated fair value, though share price volatility may concern some investors.
- Navigate through the intricacies of Next 15 Group with our comprehensive dividend report here.
- Our expertly prepared valuation report Next 15 Group implies its share price may be lower than expected.
Pharos Energy (LSE:PHAR)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Pharos Energy plc is an independent energy company focused on exploring, developing, and producing oil and gas properties in Vietnam and Egypt, with a market cap of £88.13 million.
Operations: Pharos Energy's revenue segments consist of $20.70 million from Egypt and $115.40 million from Southeast Asia.
Dividend Yield: 5.5%
Pharos Energy's dividend yield is among the top 25% in the UK, supported by low payout ratios of 26.8% from earnings and 21.8% from cash flows, yet its dividend history is marked by volatility over the past decade. The stock trades at a significant discount to its estimated fair value, suggesting potential value for investors despite an unstable dividend track record. Recent leadership changes include João Saraiva e Silva's appointment as Non-Executive Chair, potentially influencing future strategic direction.
- Get an in-depth perspective on Pharos Energy's performance by reading our dividend report here.
- The analysis detailed in our Pharos Energy valuation report hints at an deflated share price compared to its estimated value.
Turning Ideas Into Actions
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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.
Valuation is complex, but we're here to simplify it.
Discover if Next 15 Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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