Exploring Man Group And Two More Top Dividend Stocks In The UK

2 months ago

Amidst a challenging week where the FTSE 100 is poised for its most significant downturn since February, and broader global markets face similar strains, investors are keenly observing market dynamics. In such times, identifying robust dividend stocks in the UK can offer potential resilience and steady income streams against the backdrop of market volatility.

Click here to see the full list of 56 stocks from our Top Dividend Stocks screener.

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

Overview: Man Group Limited is a publicly owned investment manager with a market capitalization of approximately £3.03 billion.

Operations: Man Group Limited generates its revenue primarily through its Investment Management Business, which reported earnings of $1.17 billion.

Man Group’s dividend performance shows a mixed but improving landscape. Despite a volatile history with dividends dropping by over 20% annually in some years, recent adjustments suggest stabilization. Currently, the dividend yield stands at 4.9%, which is below the UK market’s top quartile but supported by a sustainable payout ratio of 82% from earnings and a healthy cash payout ratio of 62.3%. However, one-off financial items have impacted results, and profit margins have decreased from last year’s 35.1% to 20%. Recent board enhancements could signal strategic shifts beneficial for future governance and dividend policies.
• None Get an in-depth perspective on Man Group’s performance by reading our dividend report here.
• None Our valuation report unveils the possibility Man Group’s shares may be trading at a discount.

Overview: Halfords Group plc operates in the United Kingdom and the Republic of Ireland, offering a range of motoring and cycling products and services, with a market capitalization of approximately £335.65 million.

Operations: Halfords Group plc generates £995.70 million from its Retail segment and £704.20 million from Autocentres.

Halfords Group offers a dividend yield of 6.49%, placing it in the top 25% of UK dividend payers. Despite this, the company has experienced a decline in dividend payments over the past decade and has shown high share price volatility recently. However, its dividends appear sustainable with a payout ratio of 64.2% covered by earnings and a cash payout ratio of 25.1%. Additionally, it is trading at 66.8% below our estimated fair value, suggesting potential undervaluation relative to intrinsic worth.
• None Click here and access our complete dividend analysis report to understand the dynamics of Halfords Group.
• None The analysis detailed in our Halfords Group valuation report hints at an deflated share price compared to its estimated value.

Overview: SThree plc is a specialist recruitment firm operating in the STEM sectors across multiple countries including the UK, Germany, and the US, with a market capitalization of approximately £0.58 billion.

Operations: SThree plc generates revenue primarily from the USA (£328.29 million), DACH region (£524.73 million), Rest of Europe (£399.86 million), Middle East & Asia (£42.64 million), and the Netherlands including Spain (£367.64 million).

SThree plc recently approved an 11.6 pence final dividend per share at its AGM, reflecting a commitment to return value to shareholders despite a challenging backdrop with a year-on-year revenue decline of 6%. The company’s dividends are well-covered by earnings and cash flows, with payout ratios of 39.1% and 32.5% respectively, indicating sustainability. However, its dividend yield at 3.79% is below the top quartile in the UK market, and historical payments have shown volatility over the past decade.
• None Unlock comprehensive insights into our analysis of SThree stock in this dividend report.
• None Our comprehensive valuation report raises the possibility that SThree is priced lower than what may be justified by its financials.

Summing It All Up
• None Click this link to deep-dive into the 56 companies within our Top Dividend Stocks screener.
• None Have you diversified into these companies? Leverage the power of Simply Wall St’s portfolio to keep a close eye on market movements affecting your investments.
• None Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Want To Explore Some Alternatives?
• None Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• None Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com…Read more by editorial-team@simplywallst.com (Simply Wall St)


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