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3 UK Dividend Stocks Yielding Up To 5.3%

3 UK Dividend Stocks Yielding Up To 5.3%

Yahoo02-05-2025
In the face of recent challenges in the UK market, highlighted by the FTSE 100's decline due to weak trade data from China and falling commodity prices, investors are increasingly seeking stable income sources. Amidst this backdrop, dividend stocks can offer a reliable stream of income, making them an attractive option for those looking to navigate uncertain economic conditions while potentially benefiting from consistent payouts.
Name
Dividend Yield
Dividend Rating
WPP (LSE:WPP)
6.79%
★★★★★★
Man Group (LSE:EMG)
7.81%
★★★★★☆
Keller Group (LSE:KLR)
3.45%
★★★★★☆
Treatt (LSE:TET)
3.28%
★★★★★☆
4imprint Group (LSE:FOUR)
5.82%
★★★★★☆
DCC (LSE:DCC)
4.09%
★★★★★☆
NWF Group (AIM:NWF)
4.70%
★★★★★☆
Big Yellow Group (LSE:BYG)
4.43%
★★★★★☆
James Latham (AIM:LTHM)
7.55%
★★★★★☆
OSB Group (LSE:OSB)
7.01%
★★★★★☆
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market cap of £150.35 million.
Operations: Arbuthnot Banking Group PLC generates revenue from several segments including Wealth Management (£13.67 million), Asset Alliance Group (£15.34 million), Renaissance Asset Finance (£12.56 million), Banking excluding Wealth Management (£95.64 million), and Arbuthnot Commercial Asset Based Lending (£19.93 million).
Dividend Yield: 5.3%
Arbuthnot Banking Group recently announced a total dividend of 69 pence per share for 2024, up from 46 pence in 2023, indicating growth despite historical volatility. The payout ratio is low at 32.2%, suggesting dividends are well-covered by earnings. However, the dividend yield of 5.31% is lower than top UK payers and past payments have been unreliable. The bank's high level of bad loans (3.4%) may pose risks to future stability.
Click here to discover the nuances of Arbuthnot Banking Group with our detailed analytical dividend report.
According our valuation report, there's an indication that Arbuthnot Banking Group's share price might be on the cheaper side.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: IG Group Holdings plc is a fintech company that operates in the online trading industry globally, with a market cap of £3.70 billion.
Operations: IG Group Holdings plc generates revenue from its brokerage segment, amounting to £1.01 billion.
Dividend Yield: 4.4%
IG Group Holdings offers a reliable dividend yield of 4.39%, with consistent growth and stability over the past decade. The dividends are well-covered by both earnings and cash flows, with payout ratios of 47.5% and 28.6%, respectively, ensuring sustainability. Although its yield is below the top UK payers' average, IGG trades at a significant discount to its estimated fair value, suggesting good relative value within its industry despite lower yields compared to peers.
Dive into the specifics of IG Group Holdings here with our thorough dividend report.
The valuation report we've compiled suggests that IG Group Holdings' current price could be quite moderate.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Unite Group PLC owns, manages, and develops purpose-built student accommodation facilities for the higher education sector in the United Kingdom with a market cap of £4.26 billion.
Operations: Unite Group PLC generates revenue of £299.30 million from its operations in the purpose-built student accommodation sector within the UK.
Dividend Yield: 4.3%
Unite Group's dividend, though lower than the top 25% in the UK at 4.28%, is covered by earnings and cash flows with payout ratios of 57.4% and 87.3%. Despite a volatile dividend history, recent increases show a commitment to growth, with a proposed final dividend of 24.9 pence per share for 2024—a 5% rise from the previous year. Trading below its estimated fair value suggests potential relative value despite past instability in payouts.
Delve into the full analysis dividend report here for a deeper understanding of Unite Group.
Insights from our recent valuation report point to the potential undervaluation of Unite Group shares in the market.
Investigate our full lineup of 60 Top UK Dividend Stocks right here.
Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AIM:ARBB LSE:IGG and LSE:UTG.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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London's FTSE 100 just touched a record high — and market watchers see more upside ahead
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London's FTSE 100 just touched a record high — and market watchers see more upside ahead

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