3 UK Dividend Stocks Yielding Up To 6.3%

The United Kingdom's FTSE 100 index has recently faced challenges, closing lower due to weak trade data from China, which remains a key market for many UK-listed companies. In such uncertain times, dividend stocks can offer a degree of stability and income potential for investors looking to navigate these turbulent waters.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
WPP (LSE:WPP)	6.23%	★★★★★★
Man Group (LSE:EMG)	6.45%	★★★★★☆
Keller Group (LSE:KLR)	3.60%	★★★★★☆
OSB Group (LSE:OSB)	7.41%	★★★★★☆
4imprint Group (LSE:FOUR)	4.49%	★★★★★☆
Grafton Group (LSE:GFTU)	4.38%	★★★★★☆
DCC (LSE:DCC)	3.84%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.99%	★★★★★☆
NWF Group (AIM:NWF)	4.66%	★★★★★☆
James Latham (AIM:LTHM)	7.63%	★★★★★☆

Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Alumasc Group (AIM:ALU)

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

Overview: The Alumasc Group plc, with a market cap of £119.58 million, manufactures and sells building products, systems, and solutions across the United Kingdom and various international markets including Europe, North America, the Middle East, and the Far East.

Operations: Alumasc Group's revenue is segmented into Water Management (£55.87 million), Building Envelope (£39.16 million), and Housebuilding Products (£15.24 million).

Dividend Yield: 3.2%

Alumasc Group's recent earnings report shows improved financial performance, with sales increasing to £57.36 million and net income rising to £4.9 million for the half-year ended December 31, 2024. Despite historical volatility in dividend payments, the company has managed to increase dividends over the past decade. The current payout ratios indicate that dividends are well covered by both earnings and cash flows, though its 3.25% yield is lower than top UK dividend payers.

• Dive into the specifics of Alumasc Group here with our thorough dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Alumasc Group shares in the market.

Begbies Traynor Group (AIM:BEG)

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

Overview: Begbies Traynor Group plc offers professional services to businesses, advisors, corporations, and financial institutions in the UK and has a market cap of £149.17 million.

Operations: Begbies Traynor Group plc generates revenue through its Property Advisory segment, which accounts for £44.96 million, and its Business Recovery and Advisory segment, contributing £102.18 million.

Dividend Yield: 4.4%

Begbies Traynor Group's dividend payments have been stable and growing over the past decade, yet their 4.38% yield is lower than top UK dividend payers. The high payout ratio of 265.4% suggests dividends are not covered by earnings, though a reasonable cash payout ratio of 72.6% indicates coverage by cash flows. Recent executive changes include the death of non-executive director Graham McInnes, which may impact governance but not immediate financials or dividends directly.

• Navigate through the intricacies of Begbies Traynor Group with our comprehensive dividend report here.
• In light of our recent valuation report, it seems possible that Begbies Traynor Group is trading behind its estimated value.

Care REIT (LSE:CRT)

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

Overview: Impact Healthcare REIT plc focuses on acquiring, renovating, extending and redeveloping high-quality healthcare real estate assets in the UK, leasing them to established healthcare operators under long-term agreements, with a market cap of £450.83 million.

Operations: Impact Healthcare REIT plc generates its revenue by leasing high-quality healthcare real estate assets in the UK to established operators under long-term full repairing and insuring leases.

Dividend Yield: 6.4%

Care REIT's dividend yield of 6.39% ranks in the top 25% of UK dividend payers, with dividends covered by both earnings and cash flows, evidenced by payout ratios around 70%. Despite a volatile share price and only eight years of dividend history, payments have been stable. Recent news highlights an acquisition agreement by CareTrust REIT for £450 million, potentially affecting future dividends as Care REIT will be delisted post-acquisition.

• Get an in-depth perspective on Care REIT's performance by reading our dividend report here.
• Our expertly prepared valuation report Care REIT implies its share price may be lower than expected.

Next Steps

• Access the full spectrum of 62 Top UK Dividend Stocks by clicking on this link.
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Looking For Alternative Opportunities?

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• 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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