3 UK Dividend Stocks To Enhance Your Portfolio

The United Kingdom's FTSE 100 index recently experienced a downturn, influenced by weak trade data from China, which has impacted companies with significant exposure to the Chinese market. As investors navigate these challenging conditions, dividend stocks can offer a measure of stability and income potential, making them an attractive option for enhancing portfolios in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
Keller Group (LSE:KLR)	3.58%	★★★★★☆
Dunelm Group (LSE:DNLM)	7.95%	★★★★★☆
OSB Group (LSE:OSB)	7.76%	★★★★★☆
4imprint Group (LSE:FOUR)	3.05%	★★★★★☆
Man Group (LSE:EMG)	5.91%	★★★★★☆
DCC (LSE:DCC)	3.72%	★★★★★☆
Big Yellow Group (LSE:BYG)	4.77%	★★★★★☆
NWF Group (AIM:NWF)	4.74%	★★★★★☆
Grafton Group (LSE:GFTU)	4.32%	★★★★★☆
James Latham (AIM:LTHM)	7.21%	★★★★★☆

Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.

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

4imprint Group (LSE:FOUR)

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

Overview: 4imprint Group plc is a direct marketer of promotional products operating in North America, the United Kingdom, and Ireland with a market cap of £1.49 billion.

Operations: For 4imprint Group plc, the revenue segments are comprised of $1.33 billion from North America and $25 million from the United Kingdom and Ireland.

Dividend Yield: 3%

4imprint Group offers a stable dividend profile, with payments reliably growing over the past decade and covered by both earnings (58.1% payout ratio) and cash flows (53.6% cash payout ratio). Despite trading at 33.5% below its estimated fair value, its 3.05% yield is lower than the UK top quartile of dividend payers. Revenue is projected to grow annually by 4.34%, with a sales statement expected on January 21, 2025, potentially impacting future assessments.

• Dive into the specifics of 4imprint Group here with our thorough dividend report.
• The valuation report we've compiled suggests that 4imprint Group's current price could be quite moderate.

Keller Group (LSE:KLR)

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

Overview: Keller Group plc offers specialist geotechnical services across North America, Europe, the Asia-Pacific, the Middle East, and Africa with a market cap of £966.94 million.

Operations: Keller Group plc generates £2.99 billion in revenue from its specialist geotechnical services across various global regions.

Dividend Yield: 3.6%

Keller Group offers a stable dividend profile, with payments reliably increasing over the past decade and well-covered by earnings (27.6% payout ratio) and cash flows (18.1% cash payout ratio). Although its 3.58% yield is below the top UK dividend payers, it trades at 14.7% below estimated fair value, suggesting potential upside. Recent board changes emphasize sustainability focus but do not directly impact dividends or financial outlooks significantly in the short term.

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

Ocean Wilsons Holdings (LSE:OCN)

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

Overview: Ocean Wilsons Holdings Limited is an investment holding company that provides maritime and logistics services in Brazil, with a market cap of £472.10 million.

Operations: Ocean Wilsons Holdings Limited generates revenue of $519.35 million from its maritime services in Brazil.

Dividend Yield: 5%

Ocean Wilsons Holdings provides a reliable dividend, with payments consistently growing over the past decade. Its 5.04% yield is slightly below the top UK payers but remains attractive, supported by low payout ratios of 48.7% for earnings and 26.6% for cash flows, indicating sustainability. Despite recent large one-off items affecting results, its valuation at a price-to-earnings ratio of 9.7x suggests it may offer good value compared to the broader UK market average of 16.2x.

• Delve into the full analysis dividend report here for a deeper understanding of Ocean Wilsons Holdings.
• According our valuation report, there's an indication that Ocean Wilsons Holdings' share price might be on the expensive side.

Taking Advantage

• Gain an insight into the universe of 59 Top UK Dividend Stocks by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

• 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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