Top 10 UK dividend stocks from Q3 2024

To find the 10 best income-focused stocks of the quarter, we looked at the Morningstar UK index – which measures the performance of the UK’s broad regional markets, targeting the top 97% of stocks by market capitalization – for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.

The best UK dividend stocks of Q3 2024

1. Bridgepoint Group BPT
2. St. James’s Place STJ
3. Drax Group DRX
4. Keller Group KLR
5. Just group JUST
6. WH Smith SMWH
7. Kingfisher KGF
8. TI Fluid Systems TIFS
9. Coats Group COA
10. Centamin CEY

How have dividend stocks fared?

The Morningstar UK Dividend Yield Focus index, which tracks the performance of high-quality, dividend-paying shares listed in the UK, is up 6.6% over the past month and 16.9% over the past year.

The UK stock market, as measured by the Morningstar UK index, gained 2.5% for the quarter and 13.2% for the year.

Yields and Values ​​for Q3’s Best-Performing Dividend Stocks

The Bridgepoint Group
Asset management firm Bridgepoint rose 58.4% in the third quarter and has gained 83.6% over the last 12 months. Trading at £3.45 per share, its shares have a forward dividend yield of 2.67%. Bridgepoint Group pays investors a trailing 12-month dividend of 9p per share. The stock has a Morningstar Quantitative Rating of 3 stars.

St. Jacob’s place
The asset management company St. James’s Place was up 35.4% in the third quarter and has lost 10.1% over the past 12 months. At £7.34 a share, its shares have a forward dividend yield of 1.91% and a trailing 12-month dividend of 24p a share. It has a Morningstar quantitative rating of 3 stars.

Drax Group
Renewable energy firm Drax gained 33.1% in the third quarter and is up 52.4% over the past 12 months. The share price of £6.45 gives it a forward dividend yield of 3.77%. Drax Group pays investors a trailing 23 dividend per share. The stock has a Morningstar Quantitative Rating of 3 stars.

The Keller Group
The engineering and construction company Keller was up 32.9% in the third quarter and has gained 121.6% over the past 12 months. Trading at £16.16 per share, Keller shares have a forward dividend yield of 2.96% and a trailing 45p per share dividend. It has a Morningstar quantitative rating of 3 stars.

Group only
Specialty insurance firm Just Group gained 32.7% in the third quarter and is up 96.4% over the last 12 months. Trading at £1.39 per share, its forward dividend yield is 1.58%. Just Group pays investors a dividend of 2 per share every 12 months. It has a Morningstar quantitative rating of 3 stars.

WH Smith
Specialty retailer WH Smith gained 29.8% in the third quarter and is up 10.8% over the past 12 months. At £14.58 a share, WH Smith shares have a forward dividend yield of 2.18% and a trailing 12-month dividend of 29p a share. It has a Morningstar quantitative rating of 3 stars.

Gull
Home improvement retailer Kingfisher was up 29.4% in the third quarter and has gained 49.8% over the past 12 months. Trading at £3.22 per share, Kingfisher shares have a forward dividend yield of 3.85% and a 12-month dividend per share of 12p. The stock, which has no economic basis, is moderately overvalued, trading 11% above its estimated fair value of £2.90 per share. It has a Morningstar rating of 2 stars.

TI Fluid Systems
Auto parts firm TI Fluid Systems rose 27.8% in the third quarter and gained 38.4% over the past 12 months. Trading at £1.65 per share, TI Fluid Systems shares have a forward dividend yield of 3.58% and pay investors a trailing 6p per share dividend. The stock has a Morningstar Quantitative Rating of 4 stars.

The coat group
Textile maker Coats gained 26.8% in the third quarter and is up 40.1% over the past 12 months. The share price of £1 gives it a forward dividend yield of 2.28%. Coats pays investors a dividend of 2 per share trailing 12 months. The stock has a Morningstar Quantitative Rating of 3 stars.

Centamine
Gold company Centamin rose 23.0% in the third quarter and has gained 79.9% over the past 12 months. At £1.47 per share, Centamin has a forward dividend yield of 2.23% and a trailing 12-month dividend of 3p per share. It has a Morningstar quantitative rating of 3 stars.

What is the Morningstar UK Index?

The Morningstar UK Index measures the performance of the UK’s broad regional markets, targeting the top 97% of stocks by market capitalization. The index does not incorporate environmental, social or governance criteria.

What is the Morningstar UK Dividend Yield Focus Index?

The Morningstar UK Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.

It is a subset of the Morningstar UK index (which represents 97% of the equity market capitalization) that only includes dividend paying stocks. Stocks are screened to determine economic strength and financial strength compared to others in their sector. Real estate investment trusts are excluded.

The 25 highest-yielding stocks are included in the index, weighted by the dollar value of dividends. See the full regulation here.

Best Dividend Stock Leaders: More Ideas to Consider

Investors who would like to discover more top-performing or cheap dividend stocks to research further can do the following:

• See the full list of dividend stocks included in the Morningstar UK Dividend Yield Focus index. Those dividend stocks with Morningstar ratings of 4 or 5 stars are undervalued, according to our statistics.

• Read our monthly analysis of the latest dividend movements among the top FTSE 100 dividend payers.

• Use our Morningstar Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on dividend yields, valuation measures such as price/earnings, and more.

• Use Morningstar Portfolio Manager to create a watchlist of the best dividend stocks and create a visualization that lets you easily track the valuations, ratings and dividend yields of the stocks on your list.

• When it comes to buying stocks, there’s more to it than just dividends. Read here how valuations and competitive advantages, known as economic moats, matter when it comes to a stock’s potential for outperformance.

• Watch this video to learn how Morningstar uses star rating, trench rating and other metrics to rate stocks.

Companies not formally covered by a Morningstar analyst are statistically correlated with analyst-rated companies, allowing our models to calculate a quantitative star rating.

This article was compiled by Bella Albrecht, edited by Lauren Solberg and reviewed by Sunniva Kolostyak.

This article has been generated with the help of automation and reviewed by Morningstar editors.