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3 High-Yield Dividend Stocks In The UK With Yields Up To 6.9%

In This Article:

As the United Kingdom braces for a general election, the financial markets remain a focal point of interest, with recent discussions around regulatory actions and market performance capturing headlines. Amidst these dynamic conditions, investors might consider the stability offered by high-yield dividend stocks, particularly those that can provide consistent returns in varying economic climates.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

6.38%

★★★★★★

Impax Asset Management Group (AIM:IPX)

7.10%

★★★★★☆

Keller Group (LSE:KLR)

3.56%

★★★★★☆

DCC (LSE:DCC)

3.53%

★★★★★☆

Plus500 (LSE:PLUS)

5.82%

★★★★★☆

Grafton Group (LSE:GFTU)

3.90%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.87%

★★★★★☆

Rio Tinto Group (LSE:RIO)

6.43%

★★★★★☆

NWF Group (AIM:NWF)

4.39%

★★★★★☆

Hargreaves Services (AIM:HSP)

6.67%

★★★★★☆

Click here to see the full list of 56 stocks from our Top Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Castings

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

Overview: Castings P.L.C. is a company based in the United Kingdom that specializes in iron casting and machining, serving markets including Europe, North and South America, with a market capitalization of approximately £160.79 million.

Operations: Castings P.L.C. generates revenue primarily through its Foundry Operations and Machining Operations, which respectively contributed £250.98 million and £37.65 million.

Dividend Yield: 6.9%

Castings P.L.C. offers a high dividend yield of 6.92%, above the UK market average, and has increased its dividends consistently over the past decade, reflecting stability and reliability in payouts. However, this dividend is not well supported by cash flows with a cash payout ratio of 100.4%. Recent financials show an earnings growth of 21.3% over the past year with sales rising from £200.99 million to £224.41 million, yet earnings are projected to decline annually by 5.8% over the next three years. Despite these challenges, Castings trades at a significant discount to estimated fair value and recently declared both regular and special dividends, underscoring a commitment to shareholder returns amidst strategic investments.

LSE:CGS Dividend History as at Jul 2024
LSE:CGS Dividend History as at Jul 2024

DCC

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

Overview: DCC plc is a global company specializing in the sales, marketing, and distribution of carbon energy solutions, with a market capitalization of approximately £5.51 billion.