3 UK Dividend Stocks Yielding Up To 4.2%

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The United Kingdom's FTSE 100 index has recently faced challenges, closing lower amid weak trade data from China and global economic concerns. In such uncertain market conditions, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those seeking reliable returns.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

6.06%

★★★★★★

Keller Group (LSE:KLR)

3.19%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

8.30%

★★★★★☆

4imprint Group (LSE:FOUR)

3.28%

★★★★★☆

OSB Group (LSE:OSB)

8.58%

★★★★★☆

Man Group (LSE:EMG)

6.15%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.17%

★★★★★☆

Plus500 (LSE:PLUS)

6.21%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.80%

★★★★★☆

DCC (LSE:DCC)

3.56%

★★★★★☆

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

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

Next 15 Group

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

Overview: Next 15 Group plc, along with its subsidiaries, offers communications services across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific with a market cap of £402.80 million.

Operations: Next 15 Group plc generates revenue through its provision of communications services across multiple regions, including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific.

Dividend Yield: 3.8%

Next 15 Group's dividend yield of 3.79% is lower than the UK market's top quartile, yet its dividends are well covered by earnings and cash flows, with payout ratios of 25.2% and 23.3%, respectively. Despite past volatility in dividend payments, recent earnings growth—132% over the past year—indicates potential stability. However, high debt levels and volatile share prices pose risks to dividend reliability, though the stock trades at a significant discount to estimated fair value.

AIM:NFG Dividend History as at Nov 2024
AIM:NFG Dividend History as at Nov 2024

Croda International

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

Overview: Croda International Plc operates in the consumer care, life sciences, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of £4.95 billion.

Operations: Croda International Plc's revenue is segmented into Consumer Care (£898.90 million), Life Sciences (£545.30 million), and Industrial Specialties (£185.30 million).

Dividend Yield: 3.1%