Top UK Dividend Stocks To Consider In August 2024

The UK market has faced recent turbulence, with the FTSE 100 closing lower amid weak trade data from China and concerns over global economic recovery. Despite these challenges, dividend stocks remain an attractive option for investors seeking stable income and potential long-term growth.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 57 stocks from our Top UK Dividend Stocks screener.

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

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

Overview: Brooks Macdonald Group plc, with a market cap of £332.16 million, offers investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the United Kingdom, Isle of Man, and the Channel Islands.

Operations: Brooks Macdonald Group plc generates revenue of £19.62 million from its international operations and £113.99 million from segment adjustments.

Dividend Yield: 3.7%

Brooks Macdonald Group offers stable dividends, having consistently grown payments over the past decade. However, its current dividend yield of 3.65% is below the top UK dividend payers and not well covered by earnings due to a high payout ratio (162.6%). Despite lower profit margins this year, dividends are well covered by cash flows with a cash payout ratio of 34.2%. Recent executive changes include Andrea Montague’s upcoming CEO role and Greg Mullins’ appointment to bolster adviser solutions.

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

Overview: DCC plc operates in the sales, marketing, and distribution of carbon energy solutions globally, with a market cap of £5.26 billion.

Operations: DCC plc’s revenue is primarily derived from three segments: DCC Energy (£14.22 billion), DCC Healthcare (£859.38 million), and DCC Technology (£4.77 billion).

Dividend Yield: 3.7%

DCC offers a reliable dividend yield of 3.69%, supported by stable and increasing payments over the past decade. Its dividends are well-covered by both earnings (payout ratio: 59.5%) and cash flows (cash payout ratio: 39.5%). Trading at good value, DCC is expected to see earnings growth of 9.73% annually. Recent executive changes include Steve Holland’s appointment as a non-executive director, bringing extensive industry experience to the board as of July 2024.

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

Overview: Paragon Banking Group PLC, with a market cap of £1.61 billion, provides financial products and services in the United Kingdom.

Operations: Paragon Banking Group PLC generates revenue primarily through Mortgage Lending (£281.30 million) and Commercial Lending (£133.70 million) in the United Kingdom.

Dividend Yield: 5.1%

Paragon Banking Group’s dividend payments are well-covered by earnings (payout ratio: 43%) and cash flows (cash payout ratio: 3.3%). Despite a low dividend yield of 5.05% compared to the top UK payers, its dividends have grown over the past decade but remain volatile and unreliable. The company reported strong half-year earnings with net income of £81.9 million, up from £37.9 million last year, and has completed significant share buybacks worth £50 million recently.

Where To Now?

• Embark on your investment journey to our 57 Top UK Dividend Stocks selection here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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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