3 UK Dividend Stocks With Yields Up To 12.5%

As the UK market grapples with the impact of weak trade data from China, reflected in the recent dip of the FTSE 100 and FTSE 250 indices, investors are increasingly seeking stability amid global economic uncertainties. In such an environment, dividend stocks can offer a reliable income stream, providing a buffer against market volatility while rewarding shareholders with consistent returns.

Top 10 Dividend Stocks In The United Kingdom

Click here to see the full list of 49 stocks from our Top UK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

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

Overview: Bytes Technology Group plc provides software, security, AI, and cloud services across the United Kingdom, Europe, and internationally with a market cap of £712.42 million.

Operations: Bytes Technology Group plc generates its revenue from the IT Solutions Provider segment, which accounts for £219.74 million.

Dividend Yield: 6.7%

Bytes Technology Group offers a compelling dividend yield in the top 25% of UK payers, with dividends covered by both earnings (45.6% payout ratio) and cash flows (85.7% cash payout ratio). However, its dividend history is relatively short and volatile over five years. Despite trading at a discount to fair value estimates, recent guidance suggests flat operating profit due to increased costs from strategic projects and headcount investments, which could impact future dividends.

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

Overview: Hilton Food Group plc, with a market cap of £482.61 million, operates in the multi-protein food business through its subsidiaries.

Operations: Hilton Food Group plc generates its revenue from three primary segments: APAC (£1.55 billion), Europe (£1.16 billion), and UK & Ireland (£1.55 billion).

Dividend Yield: 6.5%

Hilton Food Group offers an attractive dividend yield within the top 25% of UK payers, supported by a reasonable earnings payout ratio of 67.8%. However, its dividends have been volatile and not covered by free cash flows. Recent earnings showed a significant increase in net income to £78.9 million from £39.3 million, yet large one-off items affect financial results. The stock trades below fair value estimates but lacks reliable dividend growth history over the past decade.

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

Overview: Halyk Bank of Kazakhstan Joint Stock Company, along with its subsidiaries, offers corporate and retail banking services across Kazakhstan, Kyrgyzstan, Georgia, and Uzbekistan, with a market cap of $9.40 billion.

Operations: Halyk Bank of Kazakhstan Joint Stock Company generates revenue from several segments, including Retail Banking (KZT 188.63 million), Corporate Banking (KZT 783.59 million), Investment Banking (KZT 289.07 million), and Small and Medium Enterprises (SME) Banking (KZT 195.90 million).

Dividend Yield: 12.6%

Halyk Bank of Kazakhstan offers a high dividend yield within the top 25% of UK payers, supported by a sustainable payout ratio of 50.5%. However, its dividend history is marked by volatility and unreliability over the past decade. The bank’s recent earnings growth is notable, yet it faces challenges with a high level of bad loans at 7.7%. Trading well below fair value estimates, Halyk Bank presents both opportunities and risks for income-focused investors.

Summing It All Up

• Investigate our full lineup of 49 Top UK Dividend Stocks right here.

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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 LSE:BYIT LSE:HFG and LSE:HSBK.

This article was originally published by Simply Wall St.

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