UK Dividend Champions – February 2015

I’ve updated the UK Dividends Champions List for February 2015. The 25-Year Dividend Champions club gained a new member and now has a total of 7 companies! There are also 5 new Contenders with dividend growth history ranging from 5 to 20 years. Read about the changes below.

You can 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.

Disclaimer

Please note that some of the stocks listed in this article are small companies not included in the major indexes. These stocks may be more volatile than larger companies and there may be less analysis available about their status. Nothing in this article constitutes a recommendation to buy or sell any listed stock – I am only describing factual dividend history based on my research.

Domino Printing Sciences plc – Promoted Dividend Champion (25 years)

The Company

Domino Printing Sciences plc (DNO) was founded in 1978 and is now one of the world’s largest manufacturers of barcode and digital printing solutions. Their products are aimed at manufacturing lines and printing barcodes, logos or text onto a diverse range of materials and surfaces. The company is organized into business units by geographic region – Europe, Americas and Asia/Rest of World.

The Dividend

DNO was previously listed as a 22-year Contender, however I found additional dividend history back to 1989 which justifies the revised length of 25 years.

The dividend yield is 3.3% and it has grown by 15% annually over the previous 10-years with last year’s increase being 5%.


J. Smart & Co. plc – New Contender (20 years)

The Company

J. Smart & Co. plc (SMJ) offer building and civil engineering contracting, residential development for sale, the development of industrial and commercial property for lease and sale and the manufacture of hydraulically pressed concrete products. They were founded in 1947 and are a small company with £43M market capitalization.

They weren’t included in previous versions of the List as they’re not in the main FTSE / AIM indexes – instead they’re listed in the FTSE-Fledgling index.

The Dividend

SMJ has a 20 year dividend growth history after compensating for a 5:1 stock split in 2011. Dividend growth is very low at a 10-year rate of 2% and last year’s increase was 1%. Their current dividend yield is 3.2%.


Dewhurst plc – New Contender (18 years)

The Company

Dewhurst plc (DWHT) is a supplier of components to the lift (US translation: elevator), keypad and rail industries. They do business in the US (25% of sales), UK/Europe (49%) and Asia/Australia (26%).

They’re not included in any FTSE / AIM index that I could find and are a small company with a £42.5M market cap.

The Dividend

DWHT’s dividend is 1.8% and they’ve achieved an 18 year dividend growth history. Last year’s increase was 20% with an annualized growth of 6.6% over 10 years.


Highcroft Investments plc – New Contender (18 years)

The Company

Highcroft Investments plc (HCFT) is another company from the FTSE-Fledgling index. This is a REIT who invest in property with a bias in the South-East of the UK and they have a market cap of £43M.

The Dividend

With an 18 year dividend growth history, HCFT have managed an annualized 10-year growth of 11.8% with last year’s increase being 6.8%.


Domino’s Pizza Group PLC – Reinstated Contender (15 years)

I deleted Domino’s from last version of the list due to incorrect data about their 2013 dividend. This is now corrected and they’re back in the list. I also managed to confuse them with Domino Printing Services plc along the way!

The Company

A FTSE-250 company, Domino’s Pizza Group plc (DOM) is a UK franchisee of the US Domino’s Pizza company. They hold the exclusive right to own, operate and franchises of the chain in the UK, Ireland, Germany, Switzerland, Liechtenstein and Luxembourg.

A £1.1B company, they report in 4 segments based on region: United Kingdom, Ireland, Germany and Switzerland.

The Dividend

DOM’s dividend yield is 2.4% and has increased for the last 10-years at an annualized 28% rate, with last year’s increase being 10%. They have increased their dividends yearly for the last 15 years.


Latchways plc – New Contender (12 years)

The Company

Another stock apparently not part of an LSE index, Latchways plc (LTC) make safety products for the aerospace, power transmission, utilities and telecommunications industries to enable safe work on buildings, towers and bridges. They have an £81M market cap and operate in two segments – Safety Products (92% of profits) and Safety Services.

The Dividend

With a 12 year dividend growth history, LTC increased their dividend 10% last year achieving an annualized 10-year increase of 15%. The dividend yield is 5.4%.


TR European Growth Trust PLC – Promoted Contender (12 years)

The Company

TR European Growth Trust plc (TRG) is an investment trust investing in small and mid-cap companies across Europe.

The Dividend

TRG were previously in the list as a 4-year contender but after further research they have a 12 year dividend growth history. With a current yield of 1.2% their dividend increased 8% last year and they have an annualized 10-year growth rate of 10%.


Treatt plc – New Contender (10 years)

The Company

Treatt plc (TET) provides ingredients and raw materials to the flavor, fragrance and personal care industries. They’ve been in business for 128 years when they started out trading in essential oils and are included in the FTSE-Fledgling index. Their market cap is £80M.

The company reports in one global business unit and their revenue by region in FY2014 was UK (13%), Europe (27%), Americas (37%) and Rest of World (23%).

The Dividend

TET has a 10 year dividend growth history, increasing their dividend at an annualized 8.6% over that time. Last year’s increase was 20% and the current yield is 2.4%.


Burberry Group PLC – New Challenger (5 years)

The Company

Establised in 1856, Burberry Group plc (BRBY) is a £7B luxury brand company famous for their trench coat. It reports in two segments  – retail / wholesale (97% of revenue) and licensing (3%).

The Dividend

BRBY have a 5 year dividend growth period after reviewing their history. They have paid dividends over a much longer period and have a 10-year annualized growth of 22%. Last year’s increase was 10% and their current yield is 1.8%.


Greene King PLC – New Challenger (5 years)

The Company

Perhaps one of the oldest companies on the list, Greene King plc (GNK) started out in 1799 and operates pubs and breweries in the UK. They also brew Old Speckled Hen ale which is my number one pick in a pub if I see it. They report in three segments: Retail (managed pubs and restaurants), Pub Partners (leased pubs) and Brewing & Brands (brewing, marketing and selling beer). They’re a FTSE-250 company with a £1.8B market cap.

The Dividend

GNK have a 5 year growth history and their current yield is 3.3%. They also have a long history of dividend payments and their 5-year growth rate of 6.5%. Last year’s increase was 6.3%.


Daejan Holdings PLC – Promoted Challenger (5 years)

The Company

Daejan Holdings plc (DJAN) is a property investment company founded in 1935. They invest primarily in commercial, industrial and residential property in the UK and on the eastern seaboard of the US. Day to day management of the properties is outsourced. The company has a market cap of £914M and is included in the FTSE-250 index.

The Dividend

DJAN have increased dividends for the last 5 years and currently pay a 1.4% yield. They’ve increased dividends at an annualized 2.3% over 5 years and last year they increased their dividend by 3.8%.


New Near-Challengers

The following companies are new additions to the list with a 4-year growth history.

  • Primary Health Properties PLC
  • Henderson Smaller Companies IT PLC
  • JPMorgan Smaller Companies IT PLC

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.

  • Management Consulting Group PLC (4 years)

Corrections

The following companies are reinstated in the list after being removed due to incorrect dividend data:

  • PORTMEIRION GRP – Reinstated Challenger (5 years)
  • SSE plc – Reinstated: Contender (14 years)
  • Chesnara PLC – Reinstated: Contender (11 years)
  • Devro PLC – Reinstated: Challenger (5 years)

Thank you!

Special thanks to Seductive Dividend Stocks for identifying some new companies and pointing out some errors corrected in this version!

Summary

Well that’s it for February – 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 March.

Please let me know if you see any errors in the List, thank you!

Quote of the day

Don’t wait. The time will never be just right.

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