The United Kingdom’s FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China and global economic uncertainties. In such fluctuating market conditions, dividend stocks can offer a measure of stability and income potential for investors seeking to navigate these challenges.
|
Name |
Dividend Yield |
Dividend Rating |
|
WPP (LSE:WPP) |
7.34% |
★★★★★★ |
|
Man Group (LSE:EMG) |
8.30% |
★★★★★☆ |
|
Treatt (LSE:TET) |
3.71% |
★★★★★☆ |
|
4imprint Group (LSE:FOUR) |
5.88% |
★★★★★☆ |
|
DCC (LSE:DCC) |
4.01% |
★★★★★☆ |
|
Big Yellow Group (LSE:BYG) |
4.67% |
★★★★★☆ |
|
Grafton Group (LSE:GFTU) |
4.18% |
★★★★★☆ |
|
OSB Group (LSE:OSB) |
7.69% |
★★★★★☆ |
|
NWF Group (AIM:NWF) |
4.58% |
★★★★★☆ |
|
James Latham (AIM:LTHM) |
7.63% |
★★★★★☆ |
Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener.
Let’s review some notable picks from our screened stocks.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: James Latham plc, with a market cap of £206.60 million, imports and distributes timbers, panels, and decorative surfaces across the United Kingdom, the Republic of Ireland, Europe, and internationally.
Operations: James Latham plc generates revenue of £362.22 million from its timber importing and distribution segment.
Dividend Yield: 7.6%
James Latham offers a compelling dividend yield of 7.63%, placing it in the top 25% of UK dividend payers, although its dividends are not well covered by free cash flows. Despite stable and reliable dividend growth over the past decade, high cash payout ratios suggest potential sustainability concerns. The company’s earnings are forecasted to decline by 1.4% annually over the next three years, and recent guidance indicates stable revenue but ongoing competitive pressures in its market segment.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: M.P. Evans Group PLC, with a market cap of £513 million, operates through its subsidiaries in the ownership and development of oil palm plantations in Indonesia and Malaysia.
Operations: M.P. Evans Group PLC generates revenue primarily from its Indonesian plantation operations, amounting to $352.84 million.
Dividend Yield: 5%
M.P. Evans Group’s dividend payments have increased, with a recent 17% rise, but historically they have been volatile. The company’s dividends are well-covered by earnings and cash flows, boasting a payout ratio of 39.6% and a cash payout ratio of 30.3%. Despite trading at good value compared to peers and industry standards, its dividend yield is lower than the top UK payers. Recent buybacks indicate shareholder returns focus amidst fluctuating crop production figures.