UK Dividend Champions January 2016 Update

UK Dividend Champions List logo for January 2016 The UK Dividend Champions List January 2016 edition is now available at DividendChampions.UK. There are a lot of updates this month as I tried to catch up with the calendar year end, including eight new Dividend Contenders (10+ years) with one Contender being removed. Read on for the summary of the 184 companies updated this month.


Here’s an overview of the changes in the Calendar Year List this month – there’s a net gain of twenty-eight companies to the list as 51 were added and 23 were removed.

Category January December
Champions (25+ years) 9 9
Contenders (10-24 years) 69 +7 62
Challengers (5-9 years) 170 +44 126
Near-Challengers (4 years) 38 -23 61
Total 286 258

New Entries & Promotions

There were 165 new entries and promotions; mostly promotions from Near-Challengers (4) to Challengers (5). I’m not going to list them all out here as the table is quite large. However you can find all the new additions and promotions in the Summary sheet in the Excel file. The table below shows new or promoted companies that reached 8+ years of CY dividend growth.

I apologize in advance for any links below that show empty / missing dividend data. I’ve not had time to fully research all of the dividend history for those companies.

Company Symbol Notes
Caledonia Investments PLC CLDN NEW Contender (14)
Henderson EuroTrust PLC HNE NEW Contender (12)
Henderson Smaller Companies IT Plc HSL Promoted to Contender (12)
MURRAY INTERNATIONAL TRUST PLC MYI NEW Contender (11)
CONCURRENT TECH. CNC Promoted to Contender (10)
HARGREAVES SERVIC HSP Promoted to Contender (10)
Judges Scientific plc JDG Promoted to Contender (10)
MATTIOLI WOODS MTW Promoted to Contender (10)
BRADY BRY Promoted to Challenger (9)
Booker Group PLC BOK Promoted to Challenger (8)
Computacenter PLC CCC Promoted to Challenger (8)
CRANEWARE CRW Promoted to Challenger (8)
GB GROUP GBG Promoted to Challenger (8)
Hilton Food Group PLC HFG Promoted to Challenger (8)
Novae Group PLC NVA Promoted to Challenger (8)
Pennon Group PLC PNN Promoted to Challenger (8)
Standard Life UK Smaller Companies Trust PLC SLS NEW Challenger (8)
WYNNSTAY GROUP WYN Promoted to Challenger (8)

Most of the promotions are from the 2015 year being accounted for. New companies appearing in the list are from new or corrected dividend data that improved their history.


Companies removed from the list

Company Symbol Old Rank Notes
Hiscox Ltd HSX Challenger (8) Dividend cut
NORTHBRIDGE IND S NBI Challenger (8) Dividend cut
NEXT FIFTEEN COM NFC Challenger (8) Dividend cut
JARVIS SECURITIES JIM Challenger (6) Dividend freeze
Pace plc PIC Challenger (6) Being acquired by ARRIS (12/22/15)
Devro PLC DVO Challenger (5) Dividend freeze
London Stock Exchange Group PLC LSE Challenger (5) Dividend cut
J.MENZIES PLC MNZS Challenger (5) Dividend cut
STANLEY GIBBONS G SGI Challenger (5) Dividend cut
Senior PLC SNR Challenger (5) Dividend cut
TT electronics PLC TTG Challenger (5) Dividend freeze
bwin.party digital entertainment PLC BPTY Near-Challenger (4) Dividend cut
GOOCH & HOUSEGO GHH Near-Challenger (4) Dividend cut
GETECH GROUP GTC Near-Challenger (4) Dividend freeze
LOMBARD RISK MNGM LRM Near-Challenger (4) Dividend freeze
POLAR CAP HLDS POLR Near-Challenger (4) Dividend cut
SPACEANDPEOPLE SAL Near-Challenger (4) Dividend cut
32RED TTR Near-Challenger (4) Dividend cut

Note that the dividend cut referred to is the Calendar Year value (ex-dividend date occurred in 2015). The Financial Year growth may still show an increase or maintain the same length.


Demotions

Company Symbol Old Rank Notes
Value and Income Trust plc VIN Contender (18) Demoted to Challenger (6)

This is my mistake again. I re-classified VIN as a Challenger (6) after updating their history data and found I had made a typo in one of the entries. Correcting that mistake reduced their dividend in CY 2009 and shortened their history.


Other Updates

Sixty eight other companies had their lengths increased this month without causing any promotions. I’m not going to list them here to save some space but you can find them in the Summary sheet in the list in you’re interested.


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 5 +3 0 -2 8
Consumer Goods 3 5 14 +1 1 -1 23
Consumer Services 1 9 29 +7 5 -7 44
Financials 1 18 +4 49 +20 8 -8 76
Health Care 0 4 5 1 10
Industrials 4 22 +2 48 +12 13 -7 87
Oil & Gas 0 1 2 3 6
Technology 0 4 +1 14 +1 4 22
Telecommunications 0 1 3 1 +1 5
Utilities 0 2 1 2 +1 5
Total 9 69 +7 170 +44 38 -23 286

Financial Year Rankings

The Financial Year List is a work in progress and is not as complete as the Calendar Year List. Overall this month, two companies were added, two were deleted and one increased its length without changing rank.

FY Category January December
Dividend Growth 25+ years 12 12
Dividend Growth 10-24 Years 66 -2 68
Dividend Growth 5-9 Years 44 +2 42
Dividend Growth 1 to 4 Years 36 36
Total 158 158

New FY Entries

I researched some new companies in December such as Judges Scientific 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
Judges Scientific plc JDG New Challenger (9)
Jupiter Fund Management plc JUP New Challenger (5)

Other FY Changes

The table below shows the other changes in the FY list this month.

Company Symbol Notes
Sage plc SGE Increased length to 17 years
Victrex plc VCT Removed from list. Was Contender (13)
ITE Group plc ITE Removed from list. Was Contender (12)

Investment Trusts

The list still contains Investment Trusts; 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 31st 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. The Excel file limits the length to the last 15 years.

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 03-Jan-16.

03-Jan-16: Initial release.

Status update

The good: I made some good progress in updating the remaining 80 stocks for 2015. I also recalculated some older dividend lengths which I thought were being updated but hadn’t been so that’s an additional reason for all the changes this month.

The bad: Because of the volume of changes there may be a couple of errors in the 2015 dividend total. I compared the dividend data between Yahoo, Investorease and Hargraves-Landown and I did my best to correct the errors in the data from Yahoo and Investorease.

The unknown: Because of the April change to the UK’s dividend taxation later this year, it’s possible that some companies will pay additional dividends before March to reduce tax impacts to shareholders. The stats won’t be affected if this distribution occurs as a special dividend; but otherwise companies might lose their rank if they do this.

Summary

That’s it for January. 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.

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