Three High-Yielding UK Dividend Stocks With Returns Up To 6.3%

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As the FTSE 100 extends its negative streak and broader market volatility persists, investors may seek stability through high-yielding dividend stocks. In times of uncertainty, such stocks can offer a dual benefit of regular income and potential for long-term capital appreciation, making them an appealing choice for those looking to navigate through fluctuating markets.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Record (LSE:REC)

8.25%

★★★★★★

Keller Group (LSE:KLR)

3.34%

★★★★★☆

DCC (LSE:DCC)

3.46%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.16%

★★★★★☆

Plus500 (LSE:PLUS)

6.06%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.64%

★★★★★☆

Grafton Group (LSE:GFTU)

3.62%

★★★★★☆

Rio Tinto Group (LSE:RIO)

5.91%

★★★★★☆

NWF Group (AIM:NWF)

3.87%

★★★★★☆

Hargreaves Services (AIM:HSP)

6.38%

★★★★★☆

Click here to see the full list of 55 stocks from our Top Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Hargreaves Services

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

Overview: Hargreaves Services Plc operates in environmental and industrial services across the United Kingdom, Southeast Asia, and South Africa with a market capitalization of £185.03 million.

Operations: Hargreaves Services Plc generates £205.29 million from environmental and industrial services and £2.58 million from its Hargreaves Land operations.

Dividend Yield: 6.4%

Hargreaves Services exhibits a mixed dividend profile. While the dividend yield of 6.38% stands above the UK market average, and dividends have increased over the past decade, their reliability is questionable due to volatility in payments. The company's payout ratios from earnings (61.8%) and cash flow (53.8%) suggest current dividends are sustainable, though profit margins have declined from 18.2% to 6.2%, potentially impacting future payouts amidst significant insider selling recently observed.

AIM:HSP Dividend History as at May 2024
AIM:HSP Dividend History as at May 2024

Wynnstay Group

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

Overview: Wynnstay Group Plc is a UK-based company that manufactures and supplies agricultural products, with a market capitalization of approximately £87.96 million.

Operations: Wynnstay Group Plc generates its revenue primarily from two segments: Agriculture, which contributes £584.31 million, and Specialist Agricultural Merchanting, adding £151.48 million.

Dividend Yield: 4.5%

Wynnstay Group offers a consistent dividend yield of 4.51%, underpinned by a decade of stable growth in dividend payments. Despite trading at 39.6% below its estimated fair value, concerns arise as profit margins have decreased from 2.4% to 0.9% over the past year, and shareholders experienced dilution. However, the dividends are well-supported by earnings with a payout ratio of 56.1% and cash flows with a cash payout ratio of 34.6%, ensuring sustainability amidst financial shifts.