In This Article:
Amid a backdrop of increasing optimism in global markets, particularly with the FTSE 100 reaching new highs driven by expectations of interest rate cuts, investors are keenly observing trends that might influence their strategies. In this climate, focusing on dividend stocks like Big Yellow Group can be a prudent approach to potentially secure steady income streams in uncertain times.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Record (LSE:REC) | 8.52% | ★★★★★★ |
| Dunelm Group (LSE:DNLM) | 7.72% | ★★★★★☆ |
| Keller Group (LSE:KLR) | 3.96% | ★★★★★☆ |
| DCC (LSE:DCC) | 3.31% | ★★★★★☆ |
| Plus500 (LSE:PLUS) | 6.02% | ★★★★★☆ |
| Rio Tinto Group (LSE:RIO) | 6.03% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 3.59% | ★★★★★☆ |
| James Latham (AIM:LTHM) | 3.03% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 6.43% | ★★★★★☆ |
| Big Yellow Group (LSE:BYG) | 3.98% | ★★★★★☆ |
Click here to see the full list of 53 stocks from our Top Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Big Yellow Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Big Yellow Group, a leading self-storage provider in the UK, operates with a market capitalization of approximately £2.23 billion.
Operations: Big Yellow Group generates its revenue primarily through the provision of self-storage and related services, totaling £194.58 million.
Dividend Yield: 4%
Big Yellow Group maintains a stable dividend, with a yield of 3.98%, supported by a payout ratio of 75.9% from earnings and 82.1% from cash flows, indicating sustainability. Despite its dividends growing over the past decade, the current yield is modest compared to top UK dividend payers. The company's Price-To-Earnings ratio at 11.9x is favorable against the broader UK market average of 16.5x, but future earnings are expected to decline by an average of 4.1% annually over the next three years.
Mears Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Mears Group plc operates in the United Kingdom, offering outsourced services to both public and private sectors, with a market capitalization of approximately £369.89 million.
Operations: Mears Group plc generates revenue primarily through three segments: Management (£543.35 million), Development (£2.70 million), and Maintenance (£543.28 million).
Dividend Yield: 3.3%
Mears Group's dividend profile is mixed, with a history of both growth and volatility over the past decade. The company's Price-To-Earnings ratio stands at 10.7x, below the UK market average of 16.5x, indicating potential value. Dividends are well-covered by earnings and cash flows, with payout ratios of 39.5% and 11.3%, respectively. However, its dividend yield at 3.31% trails behind the top quartile in the UK market (5.82%). Recent financials show an increase in sales to £1.09 billion and net income to £35.2 million for FY2023, alongside a proposed dividend increase reflecting confidence in future prospects.