3 UK Dividend Stocks With Yields Up To 5.4%

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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting global economic interdependencies. In such volatile conditions, dividend stocks can offer investors a measure of stability and income potential by providing regular payouts even when broader markets face headwinds.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

6.06%

★★★★★★

Keller Group (LSE:KLR)

3.21%

★★★★★☆

4imprint Group (LSE:FOUR)

3.26%

★★★★★☆

OSB Group (LSE:OSB)

8.42%

★★★★★☆

Man Group (LSE:EMG)

6.06%

★★★★★☆

Plus500 (LSE:PLUS)

6.19%

★★★★★☆

Big Yellow Group (LSE:BYG)

4.09%

★★★★★☆

Grafton Group (LSE:GFTU)

3.83%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.90%

★★★★★☆

DCC (LSE:DCC)

3.51%

★★★★★☆

Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener.

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

Vertu Motors

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

Overview: Vertu Motors plc is an automotive retailer in the United Kingdom with a market cap of £196.53 million.

Operations: The company generates revenue from its operations in the United Kingdom primarily through its Retail - Gasoline & Auto Dealers segment, which accounts for £4.79 billion.

Dividend Yield: 4%

Vertu Motors' dividend payments have been volatile and unreliable over the past decade, despite a low payout ratio of 41.8% and cash payout ratio of 17.6%, indicating dividends are well covered by earnings and cash flows. The company's recent buyback program, funded with existing cash resources, suggests a focus on shareholder returns. However, significant insider selling and declining profit margins could be concerning for dividend stability. Its current yield is below the top tier in the UK market.

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

Ocean Wilsons Holdings

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

Overview: Ocean Wilsons Holdings Limited is an investment holding company providing maritime and logistics services in Brazil, with a market cap of £438.50 million.

Operations: Ocean Wilsons Holdings Limited generates revenue of $519.35 million from its maritime services in Brazil.

Dividend Yield: 5.5%

Ocean Wilsons Holdings offers a stable dividend history with consistent growth over the past decade, supported by a low payout ratio of 48.7% and cash payout ratio of 26.6%, ensuring dividends are well covered by earnings and cash flows. Despite a lower yield of 5.46% compared to top-tier UK payers, its price-to-earnings ratio of 8.9x suggests good value relative to the broader market, while earnings growth remains robust at 32.7% over the past year.