Top UK Dividend Stocks To Watch In October 2024

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As the UK market grapples with the ripple effects of China's economic slowdown, reflected in a dip in both the FTSE 100 and FTSE 250 indices, investors are increasingly turning their attention to dividend stocks for stability and income. In such uncertain times, strong dividend stocks can offer a reliable income stream, making them an attractive option for those looking to navigate market volatility.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

James Latham (AIM:LTHM)

5.73%

★★★★★★

4imprint Group (LSE:FOUR)

3.05%

★★★★★☆

OSB Group (LSE:OSB)

8.29%

★★★★★☆

Impax Asset Management Group (AIM:IPX)

7.39%

★★★★★☆

Plus500 (LSE:PLUS)

6.01%

★★★★★☆

Man Group (LSE:EMG)

5.78%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.68%

★★★★★☆

Dunelm Group (LSE:DNLM)

6.74%

★★★★★☆

NWF Group (AIM:NWF)

4.98%

★★★★★☆

Grafton Group (LSE:GFTU)

3.52%

★★★★★☆

Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Helios Underwriting

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

Overview: Helios Underwriting plc, along with its subsidiaries, offers limited liability investment opportunities for shareholders in the Lloyd’s insurance market in the United Kingdom and has a market cap of £133.41 million.

Operations: Helios Underwriting generates its revenue primarily from Syndicate Participation (£258.32 million) and Investment Management (£4.62 million) within the Lloyd’s insurance market in the UK.

Dividend Yield: 3.2%

Helios Underwriting offers a mixed dividend profile. Despite a low payout ratio of 25.3% and strong cash flow coverage at 8.2%, its dividends have been volatile over the past decade, with payments not consistently growing. The current yield of 3.21% is below the UK market's top quartile, yet it trades at an attractive price-to-earnings ratio of 7.5x versus the market's 16.5x, suggesting good relative value for investors seeking potential growth alongside dividends.

AIM:HUW Dividend History as at Oct 2024
AIM:HUW Dividend History as at Oct 2024

Bank of Georgia Group

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

Overview: Bank of Georgia Group PLC, with a market cap of £1.63 billion, operates through its subsidiaries to offer banking and financial services primarily in the Georgian and Armenian markets.

Operations: Bank of Georgia Group PLC generates revenue from its subsidiaries by providing a range of banking and financial services focused on the Georgian and Armenian markets.

Dividend Yield: 5.9%

Bank of Georgia Group's dividend profile shows growth, with recent increases, yet remains volatile and unreliable over its six-year history. Despite a low payout ratio of 17%, suggesting strong coverage by earnings, the dividends have been inconsistent. The stock trades at a significant discount to estimated fair value and offers a competitive yield in the UK market. Recent share buybacks aim to reduce capital, potentially enhancing shareholder value despite past shareholder dilution.

LSE:BGEO Dividend History as at Oct 2024
LSE:BGEO Dividend History as at Oct 2024

4imprint Group

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

Overview: 4imprint Group plc operates as a direct marketer of promotional products in North America, the United Kingdom, and Ireland, with a market cap of approximately £1.46 billion.

Operations: The company's revenue segments include $25 million from the UK & Ireland and $1.33 billion from North America.

Dividend Yield: 3.1%

4imprint Group offers a reliable dividend profile with a 3.05% yield, supported by stable earnings and cash flow coverage, evidenced by payout ratios of 58.1% and 54.4%, respectively. The company has consistently increased dividends over the past decade, recently announcing a 23% interim dividend hike to £0.627 per share. Despite trading below fair value estimates, its yield is modest compared to top UK payers but is bolstered by strong financial performance and growth prospects.

LSE:FOUR Dividend History as at Oct 2024
LSE:FOUR Dividend History as at Oct 2024

Seize The Opportunity

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Contemplating Other Strategies?

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:HUW LSE:BGEO and LSE:FOUR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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