UK Dividend Champions January 2017 Update

UK Dividend Champions January 2017 Logo The UK Dividend Champions January 2017 edition is now available at DividendChampions.UK.

It’s the start of a new year with one company being added to the List, increasing the current list membership to 257.

Here’s an overview of the Calendar Year List changes this month. One company was added for a net gain of one. Not the most exciting update ever but due to the nature of the list, 2017 increases won’t influence the list until later in the year.

Category Jan Dec Changes
Champions (25+ years) 10 10 0
Contenders (10-24 years) 63 62 +1
Challengers (5-9 years) 152 153 -1
Near-Challengers (4 years) 32 31 +1
Total 257 256 +1

New Entries to the List

There was one new entry this month .

Company Symbol New Rank
Brewin Dolphin plc BRW Near-Challenger (4)

Brewin Dolphin plc is a $864M wealth management company with roots back to 1762. It’s had a pretty long dividend payout period but maintained steady dividends from 2009 to 2012. On a FY basis, it’s achieved five years of dividend growth, but only four years when counting calendar years.

Promotions

The following companies were promoted to the next category

Company Symbol New Rank
Primary Health Properties plc PHP Contender (16)

I researched Primary Health Properties plc (PHP) manually and dug up some more dividend history. They’re a Health REIT with a $660M market cap and have paid dividends consistently since their first declared payment in 1997.

Companies removed from the List

No companies were removed from the list this month which is a first for quite a while.

However Regus plc (RGU) changed its name to IWG plc (IWG) so it shows up in the list as a deletion of RGU and an addition of IWG.

Company Symbol Old Rank Notes
Regus plc RGU Challenger (7) Changed name to IWG

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 (again!) to process them this month as I looked at some other companies instead.

Other Updates

One company, Novae Group plc (NVA), increased their dividend growth by a year in this month’s List although the increase did not result in a promotion. More details can be found in the Summary tab of the List.

I corrected the history of two funds too – Caledonia Investments plc (CLDN) and City of London IT plc (CTY) have 39 and 34 growth histories on a CY basis. Their history is longer on an FY basis (49 and 50 years respectively) as I couldn’t find any actual data before 1978 or so.

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 39
Financials 2 17 +1 45 -1 9 +1 73 +1
Health Care 0 4 6 1 11
Industrials 3 21 45 9 78
Oil & Gas 0 0 3 1 4
Technology 0 2 10 2 14
Telecommunications 0 2 2 1 5
Utilities 1 2 0 1 4
Total 10 63 +1 152 -1 32 +1 257 +1

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 three new companies added, for a net gain of three.

FY Category January December Changes
Dividend Growth 25+ years 16 16 0
Dividend Growth 10-24 Years 66 65 +1
Dividend Growth 5-9 Years 51 49 +2
Dividend Growth 1 to 4 Years 30 30 0
Total 163 160  +3

New FY Entries

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

Company Symbol Notes
Primary Health Properties plc PHP New 20-year Contender
Novae Group plc NVA New 9-year Challenger
Brewin Dolphin plc BRW New 5-year Challenger

Deleted FY Entries

No companies were removed from the FY Growth List this month.

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
Calendonia Investments plc CLDN Increased to 49-year growth
RWS Holdings plc RWS Increased to 13-year growth
Treatt plc TET Increased to 13-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 1st January. This is the price data from 30th December since the market is closed.

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.

Excel vs Website

In building the List, I have two categories of companies: 1) those I’ve manually researched and 2) those that rely on dividend data from Yahoo which is very limited in its history / accuracy. I’m working to clean up the Yahoo data but it takes time.

DividendChampions.UK is populated from a database built from the companies I’ve manually researched. This is a subset of the complete list. It contains placeholder pages for any other company in the Excel file but you’ll have to search for it using the search bar and there’s not a lot of data for those companies. Dividend history and graphs on the site are only available for companies that I’ve manually verified.

List Corrections

Current file version is dated 02-January-17.

02-January-17: Initial release. I fixed some misaligned columns in a very early version of the file. Please re-download if the Subsector column data are out of place. Sorry about that.

Status update

The good: I’ve caught up on all the 2016 dividend announcements on the companies that I’ve researched to date. Dee Valley Group (DVW) deferred their interim dividend announcement as it turned out. They may be acquired by Severn Trent Water (SVT).

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

Summary

The changes this month weren’t that major. Full effects of a 2017 CY dividend policy won’t be known until later in the year. Look for the List on DividendChampions.UK towards the end of 05-Febuary (US Time), or wait for the release notes being posted here.

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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