Top UK Dividend Stocks To Consider In July 2024

The UK market has been experiencing some turbulence, with the FTSE 100 index closing lower after weak trade data from China signaled ongoing economic struggles. As global cues remain uncertain, investors may find stability in dividend stocks, which can provide a reliable income stream even during volatile times.

Top 10 Dividend Stocks In The United Kingdom

Name	Dividend Yield	Dividend Rating
James Latham (AIM:LTHM)	5.43%	★★★★★★
Impax Asset Management Group (AIM:IPX)	6.73%	★★★★★☆
Big Yellow Group (LSE:BYG)	3.80%	★★★★★☆
Rio Tinto Group (LSE:RIO)	6.66%	★★★★★☆
Plus500 (LSE:PLUS)	5.64%	★★★★★☆
DCC (LSE:DCC)	3.70%	★★★★★☆
NWF Group (AIM:NWF)	4.62%	★★★★★☆
Dunelm Group (LSE:DNLM)	6.29%	★★★★★☆
Hargreaves Services (AIM:HSP)	6.25%	★★★★★☆
Grafton Group (LSE:GFTU)	3.38%	★★★★★☆

Click here to see the full list of 55 stocks from our Top UK Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

BBGI Global Infrastructure (LSE:BBGI)

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

Overview: BBGI Global Infrastructure S.A. is an investment firm that specializes in infrastructure investments in operational or near-operational assets, with a market cap of £1.00 billion.

Operations: BBGI Global Infrastructure S.A. generates its revenue from the Financial Services - Closed End Funds segment, totaling £48.10 million.

Dividend Yield: 5.7%

BBGI Global Infrastructure offers a dividend yield of 5.66%, placing it in the top 25% of UK dividend payers. However, its high payout ratio (140.6%) indicates dividends are not well covered by earnings or free cash flows, raising sustainability concerns. Despite this, BBGI has maintained stable and reliable dividend payments over the past decade with consistent growth. Recently, BBGI initiated a share buyback program authorized to repurchase up to 107 million shares, potentially enhancing shareholder value.

• Take a closer look at BBGI Global Infrastructure's potential here in our dividend report.
• Our comprehensive valuation report raises the possibility that BBGI Global Infrastructure is priced higher than what may be justified by its financials.

Ninety One Group (LSE:N91)

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

Overview: Ninety One Group operates as an independent global asset manager worldwide with a market cap of £1.54 billion.

Operations: Ninety One Group generates revenue primarily from its Investment Management Business, amounting to £588.50 million.

Dividend Yield: 7.2%

Ninety One Group's dividend yield of 7.17% is among the top 25% in the UK market, supported by a reasonable payout ratio (66.8%) and cash payout ratio (65.5%). Despite only four years of dividend history, payments have been stable. Recent earnings showed slight declines in sales and revenue but steady net income at £163.9 million. Notably, the final dividend was reduced to 6.4 pence per share for FY2024 amidst broader executive changes within the company’s investment team.

• Navigate through the intricacies of Ninety One Group with our comprehensive dividend report here.
• According our valuation report, there's an indication that Ninety One Group's share price might be on the cheaper side.

Ocean Wilsons Holdings (LSE:OCN)

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

Overview: Ocean Wilsons Holdings Limited, with a market cap of £461.49 million, is an investment holding company that provides maritime and logistics services in Brazil.

Operations: Ocean Wilsons Holdings Limited generates $486.65 million in revenue from its maritime services in Brazil.

Dividend Yield: 5.1%

Ocean Wilsons Holdings offers a stable and reliable dividend, with a yield of 5.08%. Its dividends are well-covered by earnings (payout ratio: 44.8%) and cash flows (cash payout ratio: 48.1%). The company has maintained consistent dividend payments over the past decade, with gradual increases. Additionally, Ocean Wilsons' Price-To-Earnings ratio of 8.8x suggests it is undervalued compared to the broader UK market (16.5x). Despite recent profitability driven by large one-off items, future earnings growth is projected at 7.2% annually.

• Click here to discover the nuances of Ocean Wilsons Holdings with our detailed analytical dividend report.
• Our valuation report here indicates Ocean Wilsons Holdings may be overvalued.

Make It Happen

• Get an in-depth perspective on all 55 Top UK Dividend Stocks by using our screener here.
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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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