Amidst the recent turbulence in the UK market, highlighted by the FTSE 100’s decline due to weak trade data from China, investors are increasingly seeking stability through dividend stocks. In such uncertain times, selecting dividend stocks with attractive yields can offer a reliable income stream and potentially enhance portfolio resilience.

Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.

Let’s uncover some gems from our specialized screener.

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

Overview: Epwin Group Plc manufactures and sells building products in the United Kingdom, Europe, and internationally with a market cap of £133.29 million.

Operations: Epwin Group Plc generates its revenue through two main segments: Extrusion and Moulding (£233.30 million) and Fabrication and Distribution (£130.40 million).

Dividend Yield: 5.1%

Epwin Group’s dividend payments, while covered by earnings with a payout ratio of 77.5% and well supported by a cash payout ratio of 27.2%, have been historically volatile over the past decade, experiencing annual drops exceeding 20%. Although the dividend yield of 5.08% is lower than the top UK payers, its price-to-earnings ratio of 14.6x suggests good value relative to the market average of 15.9x. Recent earnings growth supports potential future stability in dividends.

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

Overview: London Security plc is an investment holding company that manufactures, sells, and rents fire protection equipment across several European countries including the UK, with a market cap of £416.84 million.

Operations: The company’s revenue from the provision and maintenance of fire protection and security equipment amounts to £221.72 million.

Dividend Yield: 3.6%

London Security’s dividend payments, covered by earnings and cash flows with payout ratios of 65.3% and 66.2% respectively, have been historically volatile over the past decade despite a recent increase. The interim dividend was decreased to £0.80 per share, reflecting an unstable track record. Trading at 55.3% below estimated fair value, it offers potential value but yields only 3.59%, lower than top UK dividend payers’ average of 5.82%.

Story Continues

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

Overview: Mears Group plc, with a market cap of £330.19 million, provides outsourced services to both the public and private sectors in the United Kingdom.

Operations: Mears Group plc generates revenue through its Management segment, contributing £591.63 million, and its Maintenance segment, adding £551.73 million.

Dividend Yield: 3.9%

Mears Group’s dividend yield of 3.88% is below the top UK payers, and its dividends have been volatile over the past decade despite some growth. The company’s payout ratios—33.4% from earnings and 10.7% from cash flows—indicate strong coverage, suggesting sustainability despite an unstable track record. Mears trades at a favorable valuation with a P/E ratio of 7.9x against the UK’s 15.9x average, while recent guidance anticipates revenues reaching £1.13 billion for 2024, exceeding expectations.

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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.

Companies discussed in this article include AIM:EPWN AIM:LSC and LSE:MER.

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