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3 Top UK Dividend Stocks Yielding Up To 6.2%

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In recent days, the UK's FTSE 100 index has faced downward pressure due to weak trade data from China, highlighting the interconnectedness of global markets and the challenges faced by economies attempting to recover from pandemic disruptions. Amid these market fluctuations, dividend stocks can offer a measure of stability and income potential for investors seeking reliable returns in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Pets at Home Group (LSE:PETS)

6.56%

★★★★★★

4imprint Group (LSE:FOUR)

3.48%

★★★★★☆

OSB Group (LSE:OSB)

8.93%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.89%

★★★★★☆

Grafton Group (LSE:GFTU)

4.17%

★★★★★☆

Man Group (LSE:EMG)

6.27%

★★★★★☆

Plus500 (LSE:PLUS)

6.05%

★★★★★☆

Big Yellow Group (LSE:BYG)

5.04%

★★★★★☆

DCC (LSE:DCC)

3.93%

★★★★★☆

James Latham (AIM:LTHM)

6.90%

★★★★★☆

Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.

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

Anglo-Eastern Plantations

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

Overview: Anglo-Eastern Plantations Plc, with a market cap of £245.62 million, owns, operates, and develops agriculture plantations in Indonesia and Malaysia.

Operations: Anglo-Eastern Plantations generates its revenue primarily from the cultivation of plantations, amounting to $364.23 million.

Dividend Yield: 4%

Anglo-Eastern Plantations has a low dividend yield of 3.95%, underperforming compared to top UK dividend payers. Despite a history of volatility and instability in its dividends, the company's payout ratios indicate strong coverage by both earnings (10.7%) and cash flows (24.4%). Recent executive changes may impact governance, but with shares trading significantly below estimated fair value, there could be potential for capital appreciation alongside dividend income.

LSE:AEP Dividend History as at Jan 2025
LSE:AEP Dividend History as at Jan 2025

Man Group

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

Overview: Man Group Limited is a publicly owned investment manager with a market cap of approximately £2.36 billion.

Operations: Man Group Limited generates revenue of $1.40 billion from its Investment Management Business segment.

Dividend Yield: 6.3%

Man Group offers a dividend yield of 6.27%, placing it among the top 25% of UK dividend payers. Despite past volatility, its dividends are well covered by earnings (60.3% payout ratio) and cash flows (46.3% cash payout ratio). The stock trades at a significant discount to its estimated fair value, suggesting potential for capital appreciation. However, investors should be cautious due to the company's unstable dividend history over the last decade.