UK Dividend Champions – January 2015

I’ve updated the UK Dividends Champions List for January 2015. I’ve added FOUR new 25-Year Dividend Champions, a new 11-year Contender as well as a new 9-year Challenger from my research, plus many Near-Challengers were promoted by the year end. There are a fair number of demotions too – 41 companies have been de-listed due to dividend cuts or freezes!

Get the List directly via UK-DividendChampions(DL).xlsx or from the UK Dividend Champions List page.

New Entries & Promotions

Here’s a quick overview of some of the more significant changes. A full summary can be found in the “Summary” tab in the List.

PZ Cussons plc – New Dividend Champion (26 years)

The Company

PZ Cussons (PZC.L) is a £1.3B international consumer goods company focused on Personal Care, Home Care, Electricals and Food & Nutrition. They operate primarily in Europe, Asia and Africa and they are organized into three business lines; one for each geographic region. They have a wide range of brands although the only ones familiar to me are Imperial Leather soap and Morning Fresh cleaning products.

The Dividend

PZC was previously listed as a 21-year Contender, however I found some more dividend history back to 1989 which justifies the revised length of 26 years. They also split their stock by 10:1 in 2006 which isn’t factored into all sources of dividend data.

The dividend yield is 2.54% and it has grown by 9% annually over the previous 10-years with last year’s increase being 5%.

Rotork plc – New Dividend Champion (25 years)

The Company

Rotork plc (ROR.L) is a £2B manufacturing company of industrial actuators and flow control products . The company is organized into four operating segments – Controls (55% revenue – the design, manufacture and sale of electric actuators), Fluid Systems (32% revenue – the design, manufacture and sale of pneumatic and hydraulic actuators), Gears (8% revenue – design, manufacture and sale of gearboxes) and Instruments (4% revenue – high precisions pneumatic controls and power transmission products).

The Dividend

Rotark was also previously listed as a 21-year Contender and has been promoted due to additional dividend history analysis resulting in a revised 25-year growth.

The dividend yield is 2.1% and it has grown by 12.7% annually over the last 10 years with last year’s increase being 10%.

Spectris plc – New Dividend Champion (25 years)

The Company

With a £2.4B market cap, Spectris plc (SXS.L) is an engineering company that develops and manufactures precision instrumentation and controls. The company is organized in four segments – Materials Analysis (products to assess and quantify materials before or after manufacturing), Test & Measurement (measurement products for design and manufacturing) , In-Line Instrumentation (analytical measurements for various industries) and Industrial Controls (monitor and control production). Rotark is geographically diversified with 32% of sales from Europe, 31% from North America, 30% from Asia and 7% from the rest of the world.

The Dividend

Spectris was also previously listed as a 21-year Contender and has been promoted due to additional dividend history analysis including a 2:1 stock split in 1994 resulting in a revised 25-year growth.

The dividend yield is 2.1% and it has grown by 12.5% annually over the last 10 years with last year’s increase being 9.3%.

Weir Group plc – New Dividend Champion (25 years)

The Company

Weir Group plc (WEIR.L) is a diverse industrial company operating in three divisions – Minerals (54% sales – products to support mining and materials processing), Oil & Gas (33% sales – upstream pressure pumping, pressure control and downstream refining) and Power & Industrial (13% sales – valves, pumps and turbines). It has a market cap of £1.8B.

The Dividend

Weir was also previously listed as a 21-year Contender and has been promoted due to additional dividend history analysis including a 2:1 stock split in 1993 resulting in a revised 25-year growth.

The dividend yield is 0.17% and it has grown by 14.4% annually over the last 10 years with last year’s increase being 24%.

Shire Pharmaceuticals plc – New Dividend Contender (11 years)

The Company

I’ve written about Shire Pharmaceuticals plc (SHP.L) previously when I looked at the UK’s Pharmaceutical sector. Please see that article for more background on the company.

The Dividend

Shire wasn’t included in previous versions of the List as the Yahoo data showed only a 3-year growth. I’ve used the dividend history reported by Shire on their website which provides values in both USD and UKP. These values increased the dividend growth from 3 to 11 years.

The dividend yield is 0.27% and it has grown by 28% annually over the last 10 years with last year’s increase being 9.8%.

Brooks Macdonald (BRK.L) – New Dividend Contender (10 years)

The Company

Brooks Macdonald is a private client financial advisory and asset management company with a £184M market cap. It reports in four segments – Investment Management, Financial Planning, Fund & Property Management and the Channel Islands.

The Dividend

Brooks Macdonald was a former 9-year Dividend Challenger that increased its dividend in 2014 and now has 10 years of dividend growth.

The dividend yield is 1.9% and it has grown by 36% annually over the last 5 years with last year’s increase being 15.6%.

PayPoint plc (PAY.L) – New Dividend Contender (10 years)

The Company

PayPoint plc (PAY.L) is a payment processing company with a £600M market cap. It reports under one operating segment but focuses on two main areas – Retail Networks (with point of sale terminals in many small stores in the UK, Romania and Ireland) and Mobile & Online (parking permits & mobile purchases). It also has a joint venture with Yodel offering parcel drop-off and pick-up in convenience stores.

The Dividend

PayPoint was a former 9-year Dividend Challenger that increased its dividend in 2014 and now has 10 years of dividend growth.

The dividend yield is 3.97% and it has grown by 13% annually over the last 5 years with last year’s increase being 14%.

Abcam plc (ABC.L) – New Dividend Challenger (9 years)

The Company

I’ve written about Abcam plc (ABC.L) previously when I looked at the UK’s Pharmaceutical sector. Please see that article for more background on the company.

The Dividend

The dividend yield is 1.65% and it has grown by 26% annually over the last 5 years with last year’s increase being 10%.

Companies removed from the list

The following companies were removed from the January 2015 list. Companies are removed if they fail to increase their calendar year dividend. The Summary tab in the List contains some more details on the particular reason for the deletion.

Company Symbol Old
AMIAD WATER SYSTE AFS 6
Anite PLC AIE 4
AVEVA Group PLC AVV 4
Babcock International Group PLC BAB 13
Barclays PLC BARC 5
CHARACTER GRP CCT 4
Cineworld Group PLC CINE 6
Costain Group PLC COST 6
Chesnara PLC CSN 10
DCC PLC DCC 5
Dairy Crest Group PLC DCG 4
Domino’s Pizza Group PLC DOM 14
Devro PLC DVO 5
Elementis PLC ELM 4
FALKLAND ISLND HL FKL 5
Friends Life Group Ltd FLG 4
Halma PLC HLMA 5
Hyder Consulting PLC HYC 10
ICAP PLC IAP 13
Intermediate Capital Group PLC ICP 4
Informa PLC INF 4
IS SOLUTIONS ISL 5
Ladbrokes PLC LAD 4
LONDONMETRIC LMP 4
MOTIVCOM MCM 5
Micro Focus International PLC MCRO 6
MDM ENGINEERING MDM 4
MAJESTIC WINE MJW 5
Millennium & Copthorne Hotels PLC MLC 4
PERSONAL GROUP PGH 5
PORTMEIRION GRP PMP 5
RECKITT BENCK GRP RB 12
Randgold Resources Ltd RRS 7
STADIUM GROUP SDM 5
Smith & Nephew PLC SN 7
Spirent Communications PLC SPT 5
Serco Group PLC SRP 21
SSE PLC SSE 14
Synergy Health PLC SYR 13
UDG Healthcare PLC UDG 5
XP Power Ltd XPP 5

New Near-Challengers

There were 25 new entries to the Near-Challengers list – companies with a 4-year growth history. I’ve not listed them here but they can be seen on the Summary tab in the “Additions” section.

Summary

Well that’s it for January – I’ll be continuing to do further research and improve accuracy as well as find a way to add current dividend yield to the List for the next version in February. Please let me know if you see any errors in the List, thank you!

Quote of the day

The starting point of all achievement is desire.

0 thoughts on “UK Dividend Champions – January 2015”

    1. Chesnara PLC has not cut its dividend but rather increases it.
      But it has been removed from the list?

      In the same token, not sure why SSE is moved to the cut sheet as well.
      Am I missing sth here?

      1. Hi Red,

        The data for SSE I used at Yahoo Finance shows dividend payments on 31-Jul-13, 23-Jan-13 and 21-Jan-13 – the total of which is 109.40, which is less than the amount in 2014. It looks like the Yahoo data is wrong and has duplicated the 21-Jan dividends. This isn’t the first time that the Yahoo database is wrong 🙁

        Likewise, CSN.L has the same issue with dividend payments showing in Yahoo on 09-Sep-13 as well as 11-Sep-13 that look to be duplicate entries in their database.

        Unfortunately the majority of the list is built automatically from the Yahoo data at the moment, so both companies above got de-listed on that basis. I’ve been going through and manually researching / correcting the data starting with the longest paying companies.

        I’m sorry about this – I’ll make sure to correct these two and put them back in their rightful place for the next version due to be released next week.

        Best wishes,
        -DL

  1. As always, fab work. Sad to see reckitt go out, as they’ve been a great investment for many people no more waffles recently wrote about them.

    PZ Cussons are a stalwart FTSE 250 company, and one of Lord Lee’s favourites. He was one of the first ISA millionaires I believe.

    Thanks for highlighting some smaller conspiracies too, I suspect there are a lot more or there with good dividends, but it’s so difficult to research them.

    Cheers!

    1. Hi M,

      Yes the list is a little harsh as RB may yet still increase their dividends based on Financial Year reporting – their final FY13 and interim FY14 dividends that went ex-dividend in 2014 didn’t result in an increase however.

      I still prefer results based on CY, although I am tempted to add a separate sheet in the list just for Financial Year standings; the main problem is that with the Yahoo Data I can’t determine the start / end of the financial year. I track both FY and CY growth for companies I’ve researched manually (about 43 so far) so the CY list would be pretty small to start with if I did that. Would this be useful information?

      I had to look up Lord Lee as I didn’t know who he was and I could only think of Lord Lucan!

      Cheers,
      -DL

  2. Hey Dividend Life!
    I would like to ask something about Spectris in your current Worksheet. There the yield is given with 2,7% based on a DPS of 60! Even though the last ann. DPS for 2014 was only 44.
    Can you explain the difference? is there a typo in the file or sth?

    since you lived in Germany for a while
    “Beste Grüße”!

    1. Hallo Dividendenwachstum,

      I checked into this and you’re correct. The DPS value I show for SXS is a mistake due to wrong data over at Yahoo.com. They report a dividend payment of 16.0 on both October 15 and October 16 which is incorrect. 🙁

      I’m sorry about that but thank you for letting me know so I can fix it! I have some checks for duplicate Yahoo data as it happens quite often but I’ll improve the accuracy for next month’s update.

      Mach’s gut!
      -DL

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