UK Dividend Champions December 2016 Update

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

December was another month with a net loss of three companies reducing the current list membership to 256. Three 25-year champions increased their dividends for another year however.

Here’s an overview of the Calendar Year List changes this month. Four companies were removed from the list and one new company added for a net loss of three companies.

Category December Nov. Changes
Champions (25+ years) 10 10 0
Contenders (10-24 years) 62 61 +1
Challengers (5-9 years) 153 156 -3
Near-Challengers (4 years) 31 32 -1
Total 256 259 -3

New Entries to the List

There was 1 new entry this month .

Company Symbol New Rank
Cambria Automobiles plc CAMB Near-Challenger (4)

Promotions

The following companies were promoted to the next category

Company Symbol New Rank
Pennon Group plc PNN Contender (14)
Telecom Plus plc TEP Contender (10)
Renew Holdings plc RNWH Challenger (5)

Pennon Group plc (PNN) received a larger than normal promotion. They were previously a Challenger (8) but some manual research dug out a few more years of increases.

Companies removed from the List

Companies are removed from the list if they did not increase dividends based on their ex-divided dates for that calendar year. This month the following companies are removed.

Company Symbol Old Rank Notes
Aberdeen Asset Management plc ADN Contender (10) CY 16 dividends frozen
SCISYS plc SSY Challenger (7) CY 2015 dividend reduced
Mitie Group plc MTO Challenger (5) CY 2016 dividend reduced
Severn Trent plc SVT Near-Challenger (4) CY 2016 dividend reduced

Aberdeen Asset Management plc (ADN) froze their dividend this year, so they were removed.

SCISYS plc (SSY), an IT services company, should have been removed from the list earlier as they reduced their dividend in 2015. On a Financial Year basis they still increased their dividend, since the suspended interim dividend was offset by an increased final dividend.

Watchlist

The following companies will likely be removed in the future but I’ve not had time to process them yet.

Company Symbol Old Rank Notes
Connect Group PLC CNCT Challenger (6) 2015 H2 dividend cut from 6.6p to 6.3p

Connect Group plc (CNCT) will be removed from next month’s update, based on their CY 2016 dividends. I forgot to process them this month as I looked at some other companies instead.

Other Updates

11 companies increased their dividend growth by 1 year in this month’s List although the increase did not result in a promotion. They can be found in the Summary tab of the List.

In particular, three of the 11 increases were from 25-year+ dividend champions. Caledonia Investments (CLDN), Cranswick plc (CWK) and Young & Co’s Brewery (YNGA).

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 4 14 2 23
Consumer Services 1 8 24 6 +1 39 +1
Financials 2 16 -1 46 8 72 -1
Health Care 0 4 6 1 11
Industrials 3 21 45 9 -1 78 -1
Oil & Gas 0 0 3 1 4
Technology 0 2 10 -1 2 14 -1
Telecommunications 0 2 +1 2 -1 1 5
Utilities 1 2 +1 0 -1 1 -1 4 -1
Total 10 62 +1 153 -3 31 -1 256 -3

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.

Things looked better on a financial basis this month with four new companies added and one removed, for a net gain of three.

FY Category November November Changes
Dividend Growth 25+ years 16 16 0
Dividend Growth 10-24 Years 65 65 0
Dividend Growth 5-9 Years 49 46 +3
Dividend Growth 1 to 4 Years 30 30 0
Total 160 157  +3

New FY Entries

The following companies were added to the FY Growth List based on new research.

Company Symbol Notes
Pennon Group plc PNN Added as a 13-year Contender
SCISYS plc SSY Added as a 7-year Challenger
HSBC Holdings plc HSBA Added as a 6-year Challenger
Renew Holdings plc RNWH Added as a 5-year Challenger

Deleted FY Entries

The following companies were removed from the FY Growth List.

Company Symbol Notes
Aberdeen Asset Management plc ADN 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
Compass Group plc CPG Increased to 17-year growth
F&C Capital and Income Investment Trust plc FCI Increased to 23-year growth
Sage Group plc SGE Increased to 18-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 4th December.

Dividend yield is calculated based on the 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.

Micro-Caps

The List includes AIM-listed companies which may be more volatile and unstable compared to larger FTSE-listed companies. To filter these out, you can use the index (Column C) and the Market Cap (Column O) to be more selective.

List Corrections

Current file version is dated 04-December-16.

04-December-16: Initial release.

Status update

The good: I’ve caught up on all but one of the 2016 dividend announcements on the companies that I’ve researched to date. Dee Valley Group (DVW) is overdue on their interim dividend announcement but they may be acquired by Severn Trent Water (SVT).

The bad: There are many more companies left to research in more detail.

Summary

In the next update, in early January, I’ll be re-working the list to account for 2017 which is soon upon us. Dealing with year changes is still a major pain but hopefully I can find a way to make it more straightforward. Look for the List on DividendChampions.UK towards the end of the first Sunday of the month (US Time).

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

Quote of the day

Don’t judge each day by the harvest you reap but by the seeds that you plant.

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