In maintaining the UK Dividend Champions List, I’ve chosen to measure dividend growth length based on a company’s Ex-Dividend Date using a Calendar Year basis rather than Financial Year. In this post I look at the difference of Financial vs Calendar Year and its impact on the dividend growth history of some UK companies.
Financial vs Calendar Year
Making this decision simplifies the calculation since it doesn’t require knowledge of each company’s financial year end date. It also puts all companies in the list on the same playing field since there can be some major differences in financial reporting timeframes.
On the other hand, it can result in some discrepancies especially when a company announces publically that they’ve “increased dividends for xx number of years”. Such announcements are invariably based on Financial Year results and only match the Calendar Year calculations if the Financial Year ends in December and if the financial year date hasn’t changed for all of that period.
Here’s one example where the Calendar Year basis gives a shorter history so you can see what I mean.
GlaxoSmithKline plc (GSK)
|Ex-Dividend Date||Amount (GBX)||Financial Year|
|18-Feb 2004||14||2003 (Q4)|
|12-May 2004||10||2004 (Q1)|
|4-Aug 2004||10||2004 (Q2)|
|3-Nov 2004||10||2004 (Q3)|
|16-Feb 2005||12||2004 (Q4)|
|1-May 2005||10||2005 (Q1)|
|3 Aug 2005||10||2005 (Q2)|
|2-Nov 2005||10||2005 (Q3)|
|15-Feb 2006||14||2005 (Q4)|
On a Calendar Year basis, GSK paid £0.44 in 2004 and £0.42 in 2005. This reduction in dividends shortened its dividend growth record by my calculations and I show it as a 9-Year Dividend Challenger. However on a Financial Year basis, the dividends continued to increase (£0.42 in FY2004 and £0.44 in FY2005) and it has a much longer growth history on a FY basis (24 years).
Of course this works both ways and companies such as Burberry plc (BRBY) have a longer CY dividend growth history than their FY record shows (13 years vs. 5 years). So it’s swings and roundabouts really.
Anyway, now that my database is up and running (though needing a lot more data entered), I can calculate the length both ways. Here’s a list of the companies that I’ve tracked so far on a Financial Year basis along with their Calendar Year equivalent.
Please note that this list contains companies that aren’t in the UK Dividend Champions List since their CY dividend history is too short (< 4 years).
UK Dividend Growth History by Calendar Year
If there’s any interest in this Financial Year view, I’m willing to include it as a standalone sheet in the List for reference since there’s no extra work to export it out now.
|DNO||Domino Printing Sciences plc||26||25||FTSE-250|
|PZC||PZ Cussons plc||26||26||FTSE-250|
|SXS||Spectris Group plc||26||25||FTSE-250|
|VOD||Vodafone Group plc||26||20||FTSE-100|
|WEIR||Weir Group plc||26||25||FTSE-100|
|RPS||RPS Group plc||23||13||FTSE-250|
|FSJ||James Fisher and Sons plc||21||20||FTSE-250|
|RPC||RPC Group plc||21||22||FTSE-250|
|SRP||Serco Group plc||21||0||FTSE-250|
|SMJ||J. Smart & Co. plc||20||20||FTSE-FL|
|YNGA||Young & Co’s Brewery plc||19||25||AIM-100|
|AMFW||AMEC Foster Wheeler plc||18||18||FTSE-250|
|HCFT||Highcroft Investments plc||18||18||FTSE-FL|
|ULE||Ultra Electronics Holdings plc||17||18||FTSE-250|
|BNKR||The Bankers Investment Trust plc||16||15||FTSE-250|
|CRDA||Croda International plc||16||22||FTSE-250|
|ABF||Associated British Foods plc||15||9||FTSE-100|
|SYR||Synergy Health plc||13||0||FTSE-250|
|TRG||TR European Growth Trust PLC||12||12||FTSE-A/S|
|DPH||Dechra Pharmaceuticals plc||11||11||FTSE-250|
|JD.||JD Sports Fashion plc||10||10||FTSE-250|
|SHP||Shire Pharmaceuticals Group plc||10||11||FTSE-100|
|ADN||Aberdeen Asset Management plc||9||9||FTSE-100|
|EDIN||Edinburgh Investment Trust plc||9||3||FTSE-250|
|IDH||Immunodiagnostic Systems plc||9||9||AIM-100|
|IGG||IG Group Holdings plc||9||9||FTSE-250|
|ABD||Aberdeen New Dawn Investment Trust plc||8||8||FTSE-A/S|
|CTH||CareTech Holdings plc||8||7||AIM-A/S|
|3IN||3i Infrastructure plc||7||0||FTSE-250|
|AAIF||Aberdeen Asian Income Fund Limited||6||0||FTSE-A/S|
|ANCR||Animalcare Group plc||6||6||AIM-A/S|
|APH||Alliance Pharma plc||5||6||AIM-A/S|
|BRBY||Burberry Group plc||5||13||FTSE-100|
|DJAN||Daejan Holdings plc||5||5||FTSE-250|
|AMS||Advanced Medical Solutions Group plc||4||2||AIM-100|
|EAH||ECO Animal Health Group plc||4||4||AIM-A/S|
|GNK||Greene King plc||4||5||FTSE-250|
This is not a complete list either as I’ve only manually reviewed about 87 companies so far. I have another 1,391 stocks to look at! 😉
I’m aware that some of the companies may have longer dividend growth histories than I’ve shown. I use only lengths that I can prove from historical reports or accounts – generally most records stop around 1997 for UK companies with some limited data available from 1990 onwards. This tends to limit the maximum history to about 26 years.
The above list also uses my latest data so it includes updates that are not yet included in the March version of the UK Dividend Champions List (e.g. DGE’s increased dividend growth history). I figured you deserve some small reward for reading to the end of this post!
Quote of the day
The investor of today does not profit from yesterday’s growth.