3 UK Dividend Stocks To Consider With Up To 7.2% Yield

The UK market has been experiencing some turbulence, with the FTSE 100 index recently closing lower due to weak trade data from China, highlighting ongoing global economic challenges. In such uncertain times, dividend stocks can offer a measure of stability and income potential for investors seeking reliable returns amidst market volatility.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 47 stocks from our Top UK Dividend Stocks screener.

Here’s a peek at a few of the choices from the screener.

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

Overview: Foresight Group Holdings Limited is an infrastructure and private equity manager operating in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia with a market cap of £513.12 million.

Operations: Foresight Group Holdings Limited generates revenue through its Real Assets segment, contributing £114.81 million, and its Private Equity segment, adding £50.11 million.

Dividend Yield: 5.8%

Foresight Group Holdings has demonstrated a growing dividend, now in the top 25% of UK payers with a 5.83% yield. Despite only five years of payments, dividends have been stable and well-covered by earnings (67.3%) and cash flows (74%). Earnings rose by 34.4%, supporting dividend sustainability. Recent buybacks enhanced shareholder value, repurchasing shares worth £9.6 million. With earnings growth and trading below fair value estimates, FSG presents an attractive profile for dividend investors.

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

Overview: Sabre Insurance Group plc, with a market cap of £448.13 million, operates through its subsidiaries to provide general motor vehicle insurance in the United Kingdom.

Operations: Sabre Insurance Group generates revenue through its segments, including £13.52 million from Taxi insurance, £8.41 million from Motorcycle insurance, and £172.18 million from Motor Vehicle Insurance in the UK.

Dividend Yield: 7.3%

Sabre Insurance Group offers a high dividend yield, ranking in the top 25% of UK payers. Despite its volatile and unstable dividend history over eight years, current dividends are covered by earnings (80%) and cash flows (89.2%). Trading significantly below estimated fair value enhances its appeal. Recent developments include a share buyback program and approval of both final and special dividends, potentially boosting investor returns despite past payment volatility.

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

Overview: Telecom Plus Plc offers utility services in the United Kingdom with a market cap of approximately £673.61 million.

Operations: Telecom Plus Plc generates revenue primarily from its Non-Regulated Utility segment, amounting to £1.94 billion.

Dividend Yield: 5.8%

Telecom Plus has a dividend yield in the top 25% of UK payers, but its dividends have been volatile and unreliable over the past decade. Despite this instability, dividends are covered by earnings (49.4%) and cash flows (72.2%). Recent earnings showed growth, with sales reaching £1.94 billion and net income at £80.67 million for the year ending March 2026. However, a proposed dividend decrease highlights ongoing payout challenges amidst high debt levels.

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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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