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Big Yellow Group And Two More Leading Dividend Stocks To Consider

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The United Kingdom stock market has shown resilience with a steady performance over the last week and a notable 7.4% rise over the past year, coupled with an expectation of earnings growth at an annual rate of 13% in the coming years. In this context, selecting dividend stocks like Big Yellow Group that potentially offer both stability and growth could be particularly compelling for investors looking to capitalize on current market conditions.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Record (LSE:REC)

7.95%

★★★★★★

Keller Group (LSE:KLR)

3.69%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

7.17%

★★★★★☆

DCC (LSE:DCC)

3.54%

★★★★★☆

Plus500 (LSE:PLUS)

5.94%

★★★★★☆

Rio Tinto Group (LSE:RIO)

6.34%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.88%

★★★★★☆

Grafton Group (LSE:GFTU)

3.80%

★★★★★☆

NWF Group (AIM:NWF)

4.39%

★★★★★☆

Hargreaves Services (AIM:HSP)

6.79%

★★★★★☆

Click here to see the full list of 59 stocks from our Top Dividend Stocks screener.

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

Big Yellow Group

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

Overview: Big Yellow Group, recognized as the UK's brand leader in self-storage, operates with a market capitalization of approximately £2.27 billion.

Operations: Big Yellow Group generates £199.62 million from its provision of self-storage and related services.

Dividend Yield: 3.9%

Big Yellow Group's dividend yield stands at 3.88%, which is modest compared to the UK market's top quartile. Despite this, dividends have shown stability and growth over the past decade. The company's recent financial performance highlights significant earnings growth with net income rising to GBP 239.83 million from GBP 73.33 million year-over-year, supporting a sustainable payout ratio of 81.4% covered by earnings and 84.2% by cash flows, although revenue is only expected to grow by 5.58% annually. However, shareholder dilution occurred last year and insider selling has been noted recently, posing potential concerns for long-term value retention.

LSE:BYG Dividend History as at Jun 2024
LSE:BYG Dividend History as at Jun 2024

Record

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

Overview: Record plc operates globally, offering currency and derivative management services across regions including the UK, North America, Continental Europe, and Australia, with a market capitalization of approximately £127.42 million.

Operations: Record plc generates revenue primarily from the provision of currency and derivatives management services, totaling £44.10 million.