3 UK Dividend Stocks To Watch With Up To 7.7% Yield
The United Kingdom's FTSE 100 index recently experienced a downturn, largely influenced by weak trade data from China, which has struggled to rebound post-pandemic. In such fluctuating market conditions, dividend stocks can offer investors a degree of stability and income through regular payouts, making them an attractive option for those looking to navigate uncertain economic landscapes.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Telecom Plus (LSE:TEP) | 5.82% | ★★★★★☆ |
| Rathbones Group (LSE:RAT) | 5.76% | ★★★★☆☆ |
| Pollen Street Group (LSE:POLN) | 6.71% | ★★★★★☆ |
| Multitude (LSE:0R4W) | 10.58% | ★★★★★☆ |
| MONY Group (LSE:MONY) | 6.12% | ★★★★★★ |
| James Halstead (AIM:JHD) | 7.31% | ★★★★★☆ |
| Dunelm Group (LSE:DNLM) | 7.88% | ★★★★★☆ |
| BTG Consulting (AIM:BTG) | 4.34% | ★★★★★☆ |
| Arbuthnot Banking Group (AIM:ARBB) | 6.39% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 4.32% | ★★★★★☆ |
Click here to see the full list of 44 stocks from our Top UK Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
ICG (LSE:ICG)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ICG plc is a private equity firm focusing on direct and fund of fund investments, with a market cap of £5.31 billion.
Operations: ICG plc's revenue is derived from its Consolidated Entities (£33.80 million), Investment Company (IC) (£42.50 million), and Fund Management Company (FMC) (£897.70 million).
Dividend Yield: 4.5%
ICG's dividend yield of 4.51% falls short of the top 25% in the UK market, yet its dividends are well-covered by earnings (52.2%) and cash flows (28.5%). Despite a history of volatility, ICG has increased dividends for 16 consecutive years, with a recent proposal raising total dividends to £0.87 per share for FY26. Trading at 36.9% below fair value estimates, ICG presents an attractive valuation despite recent board changes and stable earnings growth projections.
- Dive into the specifics of ICG here with our thorough dividend report.
- Our valuation report here indicates ICG may be undervalued.
ME Group International (LSE:MEGP)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ME Group International plc operates automated instant-service equipment in the United Kingdom and has a market cap of £422.16 million.
Operations: ME Group International plc generates revenue from its Personal Services - Others segment, amounting to £315.92 million.
Dividend Yield: 7.7%
ME Group International's dividend yield of 7.7% ranks in the top 25% of UK payers, although its dividends are not well covered by cash flows due to a high payout ratio. Despite recent volatility and a decrease in interim dividend to 3.60 pence per share, the company trades at a significant discount to estimated fair value. Recent earnings show slight declines, with net income at £24.54 million and share repurchases totaling £2.7 million completed recently.
- Get an in-depth perspective on ME Group International's performance by reading our dividend report here.
- Our expertly prepared valuation report ME Group International implies its share price may be lower than expected.
Morgan Advanced Materials (LSE:MGAM)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Morgan Advanced Materials plc, with a market cap of £606.85 million, manufactures and sells various carbon and ceramic products.
Operations: Morgan Advanced Materials plc generates its revenue from three main segments: Thermal Products (£349.90 million), Performance Carbon (£307.30 million), and Technical Ceramics (£341.90 million).
Dividend Yield: 5.6%
Morgan Advanced Materials offers a dividend yield of 5.56%, placing it in the top 25% of UK dividend payers, yet its dividends have been unstable and unreliable over the past decade. While its cash payout ratio is reasonable at 66.5%, dividends are not well covered by earnings, and the company remains unprofitable with high debt levels. Recent executive changes include CFO Richard Armitage's planned retirement in 2027, which may impact future financial strategies.
- Delve into the full analysis dividend report here for a deeper understanding of Morgan Advanced Materials.
- The valuation report we've compiled suggests that Morgan Advanced Materials' current price could be quite moderate.
Make It Happen
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Interested In Other Possibilities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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- 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.
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