UK Dividend Champions October 2016 Update

UK Dividend Champions October 2016 logo The UK Dividend Champions October 2016 edition is now available at DividendChampions.UK.

Eight companies were removed from the list this month with two new companies added. Among the 8 lost was an investment trust Champion with 25+ years of dividend growth.

Here’s an overview of the changes in the Calendar Year List this month – there’s a net loss of six companies to the list as 8 were removed and 2 were added.

Category October September Changes
Champions (25+ years) 9 10 -1
Contenders (10-24 years) 63 62 +1
Challengers (5-9 years) 154 161 -7
Near-Challengers (4 years) 35 34 +1
Total 261 267 -6

New Entries & Promotions

There were 2 new entries and 1 promotion this month.

Company Symbol New Rank
Hargeaves Lansdown plc HL. Contender (10)
Barret Developments plc BDEV Near-Challenger (4)
Blackrock Income Strategies Trust BIST Near-Challenger (4)

Companies removed from the list

The following companies were removed from the list this month.

Company Symbol Old Rank Notes
Ashmore Group plc ASHM Challenger (6) CY 2016 dividend frozen
Bond International Software plc BDI Near-Challenger (4) CY 2016 dividend cut & liquidation
GVC Holdings plc GVC Challenger (5) CY 2016 dividend frozen due to acquisition
The Merchants Trust plc MRCH Champion (26) CY 2016 dividend frozen
Plexus Holdings plc POS Challenger (7) CY 2016 dividend cancelled
Pressure Tech plc PRES Challenger (7) CY 2016 dividend cut
Sepura plc SEPU Challenger (6) CY 2016 dividend cut
Wireless Group plc WLG Challenger (6) Acquired by News Corp UK

Watchlist

The following companies have their dividend growth length highlighted in red in the list to indicate the lowered dividend payment. It’s very likely they will be removed later this year but I’ve not had time to process them yet.

Company Symbol Old Rank Notes
Hargreaves Services plc HSP Contender (10) Interim dividend cut from 10.0p to 1.7p
SciSys PLC SSY Challenger (7) Interim dividend suspended
Rio Tinto plc RIO Challenger (6) 2016 dividend cut due from new dividend policy
Rolls-Royce Holdings plc RR. Challenger (6) 2015 H2 dividend cut
Connect Group PLC CNCT Challenger (6) 2015 H2 dividend cut from 6.6p to 6.3p

Other Updates

There were no other significant company position changes in the list.

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 3 0 6
Consumer Goods 3 5 14 2 +1 24 +1
Consumer Services 1 7 25 -2 6 39 -2
Financials 2 -1 17 +1 46 -2 8 +1 73 -1
Health Care 0 4 5 1 10
Industrials 3 21 44 -1 11 79 -1
Oil & Gas 0 0 2 -1 2 4 -1
Technology 0 3 11 -1 2 -1 16 -2
Telecommunications 0 1 3 1 5
Utilities 0 2 1 2 5
Total 9 -1 63 +1 154 -7 35 +1 261

Financial Year Rankings

The Financial Year List is a work in progress and is not as complete as the Calendar Year List. However the dividend history data for these companies is more accurate and complete.

FY Category October September Changes
Dividend Growth 25+ years 16 16 0
Dividend Growth 10-24 Years 63 61 +2
Dividend Growth 5-9 Years 45 46 -1
Dividend Growth 1 to 4 Years 33 32 +1
Total 157 155 +2

New FY Entries

The following companies were added to the FY Growth List.

Company Symbol Notes
Henderson Smaller Companies IT plc HSL Added as a 13-year Contender
Travis Perkins plc TPK Added as a 6-year Challenger
Kier Group plc KIE Re-entered list with 1 year growth

Deleted FY Entries

The following companies were removed from the FY Growth List.

Company Symbol Notes
Ashmore Group plc ASHM FY 2016 dividend freeze

Other FY Changes

The table below shows the other changes in the FY list this month for companies with 5+ years of growth.

Company Symbol Notes
Associated British Foods plc ABF Increased to 17-year growth
First Derivatives plc FDP Increased to 12-year growth
Hargreaves Lansdown plc HL. Promoted to 10-year Contender
Smiths Group plc SMIN Increased to 6-year growth

Investment Trusts

The list 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 2nd October.

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 02-October-16.

02-October-16: Initial release.

Status update

The good: I’ve highlighted companies that are pending removal from the list.

The bad: The said highlighted companies won’t be removed until the November list update.

Summary

It’s been a while since my last update, I’m sorry about that. I hope to return to more regular updates and make The List 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

That man is a success who has lived well, laughed often and loved much.

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