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3 UK Dividend Stocks Offering Up To 5.7% Yield

3 UK Dividend Stocks Offering Up To 5.7% Yield

Yahoo14-02-2025
The United Kingdom's stock market has recently faced turbulence, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting ongoing global economic challenges. In such a volatile environment, dividend stocks can offer a degree of stability and income potential for investors seeking to navigate uncertain markets.
Name
Dividend Yield
Dividend Rating
Keller Group (LSE:KLR)
3.57%
★★★★★☆
OSB Group (LSE:OSB)
7.83%
★★★★★☆
Dunelm Group (LSE:DNLM)
7.83%
★★★★★☆
Man Group (LSE:EMG)
5.92%
★★★★★☆
DCC (LSE:DCC)
3.71%
★★★★★☆
Big Yellow Group (LSE:BYG)
4.80%
★★★★★☆
NWF Group (AIM:NWF)
4.76%
★★★★★☆
James Latham (AIM:LTHM)
7.28%
★★★★★☆
Grafton Group (LSE:GFTU)
4.00%
★★★★★☆
RS Group (LSE:RS1)
3.36%
★★★★★☆
Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener.
We'll examine a selection from our screener results.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Paragon Banking Group PLC offers financial products and services in the United Kingdom, with a market capitalization of £1.57 billion.
Operations: Paragon Banking Group PLC generates revenue from its Mortgage Lending segment at £280.50 million and Commercial Lending segment at £115.20 million in the United Kingdom.
Dividend Yield: 5.1%
Paragon Banking Group's dividend payments are well-covered by earnings, with a payout ratio of 45.6%, and cash flows, reflected in a low cash payout ratio of 3.6%. Despite an increase in dividends over the past decade, their track record remains volatile. Recent financials show net income growth to £186 million for the year ended September 2024. The company is trading at good value compared to peers but offers a lower yield than top UK dividend payers.
Click to explore a detailed breakdown of our findings in Paragon Banking Group's dividend report.
Our valuation report here indicates Paragon Banking Group may be undervalued.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Plus500 Ltd. is a fintech company that provides technology-based trading platforms across Europe, the United Kingdom, Australia, and internationally, with a market cap of £2.08 billion.
Operations: Plus500 Ltd. generates revenue primarily through its CFD Trading segment, which amounts to $750.80 million.
Dividend Yield: 5.5%
Plus500's dividends are well-covered by earnings, with a payout ratio of 24.9%, and cash flows, indicated by a cash payout ratio of 36.5%. Despite dividend growth over the past decade, payments have been volatile. The stock trades at 35.8% below estimated fair value and offers good relative value compared to peers; however, its yield of 5.52% is slightly below the top UK dividend payers' threshold of 5.7%.
Click here to discover the nuances of Plus500 with our detailed analytical dividend report.
Insights from our recent valuation report point to the potential undervaluation of Plus500 shares in the market.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: TBC Bank Group PLC operates in Georgia, Azerbaijan, and Uzbekistan, offering banking, leasing, insurance, brokerage, and card processing services to both corporate and individual clients with a market cap of approximately £2.21 billion.
Operations: TBC Bank Group PLC generates revenue primarily from its Georgian Financial Services segment, which accounts for GEL 2.28 billion, and its operations in Uzbekistan, contributing GEL 336.77 million.
Dividend Yield: 5.8%
TBC Bank Group's dividends are well-covered by earnings, with a payout ratio of 31.6%, and they have been stable over the eight years of payments. The company recently announced a proposed dividend increase for 2024, subject to shareholder approval. Earnings grew by GEL 159.87 million last year, supporting dividend sustainability. TBC trades at a significant discount to estimated fair value and offers an attractive yield of 5.78%, ranking among the top UK dividend payers despite high bad loans at 2.2%.
Delve into the full analysis dividend report here for a deeper understanding of TBC Bank Group.
Upon reviewing our latest valuation report, TBC Bank Group's share price might be too pessimistic.
Delve into our full catalog of 60 Top UK Dividend Stocks here.
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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 LSE:PAG LSE:PLUS and LSE:TBCG.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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