UK Dividend Champions February 2017

UK DIvidend Champions February 2017 The UK Dividend Champions February 2017 edition is now available at DividendChampions.UK.

Apologies for the late update this month. I had unexpected travel plans on the week that I usually compile the list. Not much has changed this month though with the list membership remaining at 257.

Here’s an overview of the Calendar Year List changes this month. One company was added and one removed for a net gain of zero. 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 Feb Jan Changes
Champions (25+ years) 10 10 0
Contenders (10-24 years) 63 63 0
Challengers (5-9 years) 153 152 +1
Near-Challengers (4 years) 31 32 -1
Total 257 257 0

New Entries to the List

There was one new entry this month; an investment trust.

Company Symbol New Rank
Securities Trust of Scotland plc STS Near-Challenger (5)

Securities Trust of Scotland plc

One of Scotland’s oldest investment companies, Securities Trust of Scotland (STS) was founded in Edinburgh in 1889. The company holds assets of £191.9m and invests in global equities.

Promotions

There were no promotions this month.

Companies removed from the List

One company was removed from the list, and one changed named so that it appeared as a deletion.

Company Symbol Old Rank Notes
Speedy Hire plc SDY Near-Challenger (4) Dividend cut
Standard Life European Private Equity Trust plc SEP Near-Challenger (4) Name changed

Speedy Hire plc (SDY)

SDY kept dividends constant on a Financial Year basis in 2016. On a Calendar Year basis, it decreased overall due to three ex-dividend dates in 2015. Its most recent dividend declaration of November 2016 is an increase.

Standard Life European Private Equity Trust plc (SEP)

Standard Life European Private Equity Trust plc (SEP) changed its name to Standard Life Private Equity Trust plc (SLPE).

Watchlist

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

The list is currently empty as I finally remembered to process Connect Group plc (CNCT) this month.

Other Updates

Connect Group (CNCT)

I finally remembered to investigate Connect Group plc (CNCT) in more detail this month. It turns out that the dividend increased after being adjusted for a rights issue. I’m not entirely convinced that rights issues should be taken into account, since you’re not obliged to buy the new shares. But for now I’m following along with the Annual Report which shows an increase because the larger number of shares diluted the older dividend per share.

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 46 +1 9 74 +1
Health Care 0 4 6 1 11
Industrials 3 21 45 8 -1 77 -1
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 63 153 +1 31 –1 257

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 66 0
Dividend Growth 5-9 Years 53 51 +2
Dividend Growth 1 to 4 Years 31 30 +1
Total 166 163 +3

New FY Entries

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

Company Symbol Notes
Connect Group plc CNCT New 9-year Challenger
Securities Trust of Scotland plc STS New 5-year Challenger
Unilver plc ULVR New 1-year Near-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
Bankers Investment Trust plc BNKR Increased to 50-year growth
JPM Claverhouse IT plc JCH Increased to 43-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 11th February.

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 14-February-17.

14-February-17: Initial release.

Status update

The good: Things are ticking along although I didn’t get to research that many companies this month. I added a few more Annual Reports to the website that I came across.

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

Summary

The changes this month weren’t that major. I don’t count the effects of the Calendar Year dividends until the second half of the year when the remaining dividend is declared. This means that not much will change to the list contents when an increase is declared.

However, I would like to start including a summary of any new dividend declarations in this report.

Look for the List on DividendChampions.UK towards the end of 06-March (US Time), follow @DividendChampions on twitter for the latest status or else wait for the release notes to be 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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