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Three Leading UK Dividend Stocks With Yields Up To 7.6%

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The United Kingdom stock market has shown robust performance, with a 7.7% increase over the past year and earnings projected to grow by 13% annually. In this context, dividend stocks that offer substantial yields can be particularly appealing to investors looking for both growth and income.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Record (LSE:REC)

7.76%

★★★★★★

Keller Group (LSE:KLR)

3.46%

★★★★★☆

Dunelm Group (LSE:DNLM)

7.37%

★★★★★☆

DCC (LSE:DCC)

3.42%

★★★★★☆

Plus500 (LSE:PLUS)

5.75%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.63%

★★★★★☆

Grafton Group (LSE:GFTU)

3.62%

★★★★★☆

Rio Tinto Group (LSE:RIO)

5.83%

★★★★★☆

NWF Group (AIM:NWF)

3.71%

★★★★★☆

Hargreaves Services (AIM:HSP)

6.57%

★★★★★☆

Click here to see the full list of 54 stocks from our Top Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Big Yellow Group

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

Overview: Big Yellow Group, identified as the UK's brand leader in self-storage, operates with a market capitalization of approximately £2.43 billion.

Operations: Big Yellow Group generates its revenue primarily through the provision of self-storage and related services, totaling £199.62 million.

Dividend Yield: 3.6%

Big Yellow Group Plc showcased a robust financial performance in FY 2024, with sales rising to £199.62 million and net income surging to £239.83 million, significantly higher than the previous year. The company's dividends are well-supported, evidenced by a stable ten-year track record and coverage by both earnings (81.4% payout ratio) and cash flows (84.2% cash payout ratio). Despite this strength, its dividend yield of 3.63% remains below the top quartile in the UK market, suggesting potential concerns about its attractiveness relative to other high-yield options.

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

Norcros

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

Overview: Norcros plc is a company that develops, manufactures, and markets bathroom and kitchen products in the United Kingdom and South Africa, with a market capitalization of approximately £195.34 million.

Operations: Norcros plc generates £422.70 million in revenue from its building products segment.

Dividend Yield: 4.7%

Norcros plc anticipates FY24 underlying operating profit to align with market expectations, despite a revenue drop to £390 million from £441 million in 2023. The company's dividend history reveals instability, with volatile payments over the past decade. However, dividends are sustainably covered by earnings and cash flows, with payout ratios of 60.2% and 30.4%, respectively. Yet, its dividend yield of 4.68% falls short of the top UK dividend payers' average of 5.6%.