UK Dividend Champions December 2015 Update

UK Dividend Champions List logo for December 2015 The UK Dividend Champions List December 2015 edition is now available at DividendChampions.UK. There are lots of changes this month including six new Dividend Contenders (10+ years) with five Contenders being removed.

Read on for the summary of the 67 companies updated this month.


Here’s an overview of the changes in the Calendar Year List this month – there’s a net loss of seven companies as ten were removed and three were added.

Category DECEMBER November
Champions (25+ years) 9 9
Contenders (10-24 years) 62 +1 61
Challengers (5-9 years) 126 -4 130
Near-Challengers (4 years) 61 -4 65
Total 258 265

New Entries & Promotions

The following companies are either added to the list or else gained a rank.

Company Symbol Notes
Edinburgh Investment Trust plc EDIN NEW Contender (11)
Abcam plc ABC Promoted to Contender (10)
Associated British Foods plc ABF Promoted to Contender (10)
Aberdeen Asset Management plc ADN Promoted to Contender (10)
ARM Holdings plc ARM Promoted to Contender (10)
StatPro Group plc SOG Promoted to Contender (10)
ECO Animal Health Group plc EAH Promoted to Challenger (5)
Land Securities plc LAND Promoted to Challenger (5)
Mitie Group plc MTO Promoted to Challenger (5)
British Land Company plc BLND NEW Near-Challenger (4)
Severn Trent plc SVT NEW Near-Challenger (4)

Most of the promotions are from companies at the top of their tier increasing their dividend.

Edinburgh Investment Trust plc (an investment trust) was the one exception. It previously showed in my records with a 3-year increase, but after further review I found a mistake in the 2010 dividends that I was using.


Companies removed from the list

Company Symbol Old Rank Notes
Aggreko plc AGK Contender (17) Dividend cut based on amounts after stock split adjustment
Latchways plc LTC Contender (12) Acquired by MSA Safety Incorporated
Hunting PLC HTG Contender (11) Dividend cut based on CY15 payments
Brown (N) Group PLC BWNG Challenger (10) Dividend frozen
Immunodiagnostic Systems plc IDH Challenger (9) Annual FY15 dividend was cut
Sainsbury (J) plc SBRY Challenger (9) Dividend cut based on CY15 payments
Johnson Matthey plc JMAT Challenger (5) Dividend cut based on payment schedule change – only one CY15 dividend
Aberdeen UK Tracker Trust plc AUKT Near-Challenger (4) Dividend cut based on CY15 payments
Glencore plc GLEN Near-Challenger (4) Dividend suspended
Tate & Lyle plc TATE Near-Challenger (4) Dividend frozen on a CY basis; FY is still increasing

Some of the above results aren’t really new as I’ve only just caught up with their earlier dividend declarations. TATE and JMAT are still increasing on an FY basis. GLEN suspended dividends entirely as it’s struggling with its debt.

It’s a shame to see AGK go; on the surface they increased their dividends but not enough to offset a reverse share split last year; since share holders have less shares now than before, an increase in the dividend per share doesn’t necessarily mean an overall increase.


Demotions

Company Symbol Old Rank Notes
Burberry Group plc BRBY Contender (13) Demoted to Challenger (6)

This is my mistake. I re-classified BRBY as a Challenger (6) after reviewing their history data and found I treated some of their early dividends in the wrong year. They’ve done nothing wrong but an adjustment in their payment schedule in 2008 resulted in three dividend payments that year, resulting in a cut for 2009.


Other Updates

Forty five other companies had their lengths increased this month. I’m not going to list them so you’ll have to find them in the Summary sheet in the list. Here’s a short list of companies with at least 15 years of dividend growth that increased their dividends again this year.


Sector Summary

This section shows the companies organized into their stock sectors and the changes in each category from last month.

Sector Champions Contenders Challengers Near-Challengers Total
Basic Materials 0 3 2 -1 2 -1 7
Consumer Goods 3 5 13 2 -1 23
Consumer Services 1 9 -1 22 -1 12 44
Financials 1 14 +2 29 16 -1 60
Health Care 0 4 +1 -1 1 -1 10
Industrials 4 20 -2 36 +1 20 –1 80
Oil & Gas 0 1 -1 2 3 6
Technology 0 3 +2 13 -2 4 20
Telecommunications 0 1 3 0 4
Utilities 0 2 1 1 4
Total 9 62 +1 126 -4 61 -4 258

Financial Year Rankings

The Financial Year List is a work in progress and is not as complete as the Calendar Year List.

FY Category December November
Dividend Growth 25+ years 12 12
Dividend Growth 10-24 Years 68 +5 63
Dividend Growth 5-9 Years 42 42
Dividend Growth 1 to 4 Years 36 +3 33
Total 158 150

New FY Entries

I researched some new companies in November such as Camellia plc. As I research companies I’m adding links to any Annual Reports that I find as well as the full dividend data that I have to the company’s page on dividendchampions.uk.

The FY List tracks companies starting at 1-year growth, the so-called Distant-Challengers. Here’s a summary of the new entrants this month.

Company Symbol Notes
Hill & Smith Holdings plc HILS New Contender (12)
Brooks Macdonald plc BRK New Contender (11)
RWS Holdings plc RWS New Contender (11)
Camellia plc CAM New Contender (10)
Nichols plc NICL New Contender (10)
StatPro Group plc SOG New Distant-Challenger (3)
888 Holdings plc 888 New Distant-Challenger (1)
Hunting plc HTG New Distant-Challenger (1)
Smith & Nephew plc SN. New Distant-Challenger (1)

Investment Trusts

The list still contains Investment Trusts; until they are removed, you can easily identify them by filtering the Sector column “F” for Equity Investment Instruments, where you can either include or exclude them when viewing the list.



Fundamental Data

Entries in the list that have a “Founded” column have been manually researched and checked. The Dividend per Share and yield for these entries were calculated as of 4th December.

Dividend yield is calculated as the last 12 months of most recent dividend declarations divided by the current share price. Special dividends are also not included in yield or DPS calculations as a general rule (there are one or two exceptions), so actual yields may be higher.

All dividend history data that I have is posted on DividendChampions.UK.

Please keep in mind that the fundamental data will get increasingly out of date as the month progresses. You should always perform your own research and due diligence on any potential stock purchase and nothing in this post or the List is a recommendation to buy or sell.

The List includes AIM-listed companies which may be more volatile than larger FTSE-listed companies. The List includes the index (Column C) and the Market Cap (Column O) which can be used to filter out smaller companies.

List Corrections

Current file version is dated 06-Dec-15.

06-Dec-15: Initial release.

Status update

The good: I made a large dent in updating list entries with missing 2015 dividends over the Thanksgiving holiday, hence the large update this month. I think I updated all but a couple of companies in my database.

The bad: I’m counting about 80 companies that still need updating as they’re not in my database. Bringing them into the database is fairly slow as I verify data from annual reports but I’ll be processing as many as I can over the Christmas break.

Summary

That’s it for December. The List is usually available on DividendChampions.UK on the first Monday of the month even if I don’t blog about it.

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

Quote of the day

Life is a dream for the wise, a game for the fool, a comedy for the rich, a tragedy for the poor.

0 thoughts on “UK Dividend Champions December 2015 Update”

    1. Hi DFG,
      That’s true, although a lot of them are probably long overdue on my part and happened earlier in the year. Still there were more than I was expecting and not as many newcomers joining the list.

      Best wishes,
      -DL

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