UK Dividend Champions – June 2018

UK Dividend Champions June 2018The UK Dividend Champions June 2018 edition is now available at DividendChampions.UK.

It’s a minor update this month unfortunately as I only found time to update a few new companies.

Going forward, the releases will be documenting the status of as the end of the prior month. This is June’s report since it’s released in June but reports dividend announcements during May.

On the plus side I’ve recently spent some time over the last couple of months creating a means to track upcoming announcements and that should help ensure companies get updated more frequently. Updating dividend data for existing companies I’m tracking is easy. It’s researching and checking new companies that takes more time.

These notes concentrate on changes in Financial Year dividend growth history which I think is fairer than a Calendar Year basis for quantifying growth.

None of the companies listed here are trading recommendations. They’re simply companies that I researched or otherwise increased their dividend growth history this month.

Financial Year Rankings

Dividend growers that I’m tracking increased by two this month. I researched four companies, one of which did not qualify. An existing company also dropped out of the list.

FY Category June 2018 May 2018 Changes
Dividend Growth 25+ years 18 18 0
Dividend Growth 10-24 Years 66 66 0
Dividend Growth 5-9 Years 56 57 -1
Dividend Growth 1 to 4 Years 43 40 +3
Dividend Growth 0 Years 57 56 +1
Total 240 237 +3

New Companies Added

I researched four new companies this month. Of those, three were added to the FY Growth List since May.

Sirius Real Estate Ltd (SRE)

Sirius is a property company listed on the London Stock Exchange and Johannesburg Stock Exchange. It operates business parks and flexible workplace environments.

Founded in 2007, the company’s initial dividend payment was interrupted by the financial events of 2008. It started paying dividends again in 2014 and currently has four years of dividend growth.

Tritax Big Box plc (BBOX)

Tritax is a specialty REIT company which focuses on large warehouse properties. These are typically leased to large companies via long-term lease arrangements.

The company has increased its dividends since it was founded in 2013 with four years of dividend growth.

Majedie Investments plc (MAJE)

After starting out in 1910 operating Rubber plantations, from which it acquired its name, Majedie evolved into an investment company. It became an investment trust in 1985.

A 20 year long streak of dividend increases was brought to a halt in 2009 when investment income from the groups holdings declined. In 2014 the company restructured and dissolved its subsidiary, Javelin Capital, which was previously responsible for managing investments of the company. The restructuring resulted in a reduced dividend which has subsequently been increased for the last three years.

Deleted FY Entries

One company was removed from the FY Growth List this month.

GKN plc

Originally known as Guest, Keen and Nettlefolds, GKN was an automotive and aerospace company which has been acquired by Melrose Industries plc (MRO) in April this year. Consequently the shares have been delisted from the LSE and the company is removed from the List.

Other FY Changes

Provident Financial Group plc

PFG provides personal credit products in the UK. It wasn’t included in the list previously as it hadn’t enough CY growth to be included when I initially created the list a few years back. It was a consistent dividend payer however, so I researched it as a potential candidate to be included.

A demerger of their international business caused a holding in their dividend payments in 2007 until the company grew enough to resume increasing their payments.

However, last year the Financial Conduct Authority (the UK’s version of the SEC) started investigating the company for misconduct. This resulted in the cancellation of their dividend for FY2017 and the resignation of their chief executive officer (unfortunately named Peter Crook).

Investment Trusts

The excel 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 3rd June.

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.

Please keep in mind that the fundamental data will get increasingly out of date as the month progresses. The accuracy of the data is a best effort on my part. You should always perform your own research and due diligence on any potential stock trade 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

All dividend history data that I have is posted on DividendChampions.UK. The Excel file limits the length to the last 15 years.

DividendChampions.UK is populated from a database built from the companies I’ve manually researched. This is a subset of the complete list in the Excel file. 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 03-June-18.

03-June-18: Initial release.

Status update

The good: Things are ticking along although I didn’t get to research many companies this month.

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

Look for the next update of the List on DividendChampions.UK towards the end of 1st July (US Time). Follow @DividendChampions on twitter for the latest status or else wait for the release notes to be posted here.

Let me know if you see any comment on the List. Please keep in mind the list is entirely free and I make no money from it, 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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