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3 Dividend Stocks On The UK Exchange Yielding Up To 3.7%

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The UK market has recently faced turbulence, with the FTSE 100 index closing lower due to weak trade data from China and global economic uncertainties. Amid these challenging conditions, investors may find value in dividend stocks that offer consistent income streams and potential for long-term stability.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.70%

★★★★★★

4imprint Group (LSE:FOUR)

3.07%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

7.79%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.80%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.62%

★★★★★☆

Man Group (LSE:EMG)

5.96%

★★★★★☆

DCC (LSE:DCC)

3.79%

★★★★★☆

NWF Group (AIM:NWF)

4.76%

★★★★★☆

Pets at Home Group (LSE:PETS)

4.44%

★★★★★☆

Grafton Group (LSE:GFTU)

3.58%

★★★★★☆

Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Oxford Metrics

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

Overview: Oxford Metrics plc operates as a smart sensing and software company in the United Kingdom and internationally, with a market cap of £116.98 million.

Operations: Oxford Metrics plc generates revenue from its Vicon UK segment (£23.62 million) and Vicon USA segment (£21.09 million), with a segment adjustment of £1.76 million.

Dividend Yield: 3.1%

Oxford Metrics offers a dividend yield of 3.09%, which is lower than the top 25% of UK dividend payers. While dividends have been stable and growing over the past decade, they are not well covered by free cash flows, with a high cash payout ratio of 739.2%. The company has a reasonable payout ratio (70.7%), but profit margins have declined from 15.8% to 10.9%. Recent executive changes include Zoe Fox assuming the role of CFO as of July 1, 2024.

AIM:OMG Dividend History as at Aug 2024
AIM:OMG Dividend History as at Aug 2024

DCC

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

Overview: DCC plc is involved in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of £5.13 billion.

Operations: DCC plc generates revenue through three main segments: DCC Energy (£14.22 billion), DCC Healthcare (£859.38 million), and DCC Technology (£4.77 billion).

Dividend Yield: 3.8%

DCC plc recently proposed a 5% increase in its final dividend, bringing the total annual dividend to 196.57 pence per share, covered 2.3 times by adjusted earnings. Despite a slight dip in sales and net income for the year ending March 31, 2024, DCC's dividends remain well-covered by both earnings and cash flows with payout ratios of 59.5% and 39.5%, respectively. The company appointed Steve Holland as a non-executive Director in July 2024 to bolster its strategic direction.