The UK stock market has been resilient, showing steady performance over the last week and a notable 7.4% rise over the past year. Earnings growth is expected to be at an annual rate of 13% in the coming years. Investing in dividend stocks like Big Yellow Group, which offer stability and growth, could be attractive for investors looking to take advantage of current market conditions.
Here are the top 10 dividend stocks in the UK:
1. Record (LSE:REC) – Dividend Yield: 7.95%, Dividend Rating: ★★★★★★
2. Keller Group (LSE:KLR) – Dividend Yield: 3.69%, Dividend Rating: ★★★★★☆
3. Impax Asset Management Group (AIM:IPX) – Dividend Yield: 7.17%, Dividend Rating: ★★★★★☆
4. DCC (LSE:DCC) – Dividend Yield: 3.54%, Dividend Rating: ★★★★★☆
5. Plus500 (LSE:PLUS) – Dividend Yield: 5.94%, Dividend Rating: ★★★★★☆
6. Rio Tinto Group (LSE:RIO) – Dividend Yield: 6.34%, Dividend Rating: ★★★★★☆
7. Big Yellow Group (LSE:BYG) – Dividend Yield: 3.88%, Dividend Rating: ★★★★★☆
8. Grafton Group (LSE:GFTU) – Dividend Yield: 3.80%, Dividend Rating: ★★★★★☆
9. NWF Group (AIM:NWF) – Dividend Yield: 4.39%, Dividend Rating: ★★★★★☆
10. Hargreaves Services (AIM:HSP) – Dividend Yield: 6.79%, Dividend Rating: ★★★★★☆
Big Yellow Group, a leading self-storage brand in the UK with a market capitalization of approximately £2.27 billion, generates £199.62 million from its self-storage and related services. The company’s dividend yield is 3.88%, showing stability and growth over the past decade. Despite a modest dividend yield compared to the market’s top quartile, Big Yellow Group has seen significant earnings growth, with a sustainable payout ratio covered by earnings and cash flows. However, there have been instances of shareholder dilution and insider selling, which could raise concerns for long-term value retention.
In conclusion, investing in dividend stocks like Big Yellow Group could be a strategic move for investors looking to capitalize on the current market conditions. It’s important to conduct thorough research and consider all factors before making any investment decisions.