I’ve updated the UK Dividends Champions List for January 2015. I’ve added FOUR new 25-Year Dividend Champions, a new 11-year Contender as well as a new 9-year Challenger from my research, plus many Near-Challengers were promoted by the year end. There are a fair number of demotions too – 41 companies have been de-listed due to dividend cuts or freezes!
New Entries & Promotions
Here’s a quick overview of some of the more significant changes. A full summary can be found in the “Summary” tab in the List.
PZ Cussons plc – New Dividend Champion (26 years)
PZ Cussons (PZC.L) is a £1.3B international consumer goods company focused on Personal Care, Home Care, Electricals and Food & Nutrition. They operate primarily in Europe, Asia and Africa and they are organized into three business lines; one for each geographic region. They have a wide range of brands although the only ones familiar to me are Imperial Leather soap and Morning Fresh cleaning products.
PZC was previously listed as a 21-year Contender, however I found some more dividend history back to 1989 which justifies the revised length of 26 years. They also split their stock by 10:1 in 2006 which isn’t factored into all sources of dividend data.
The dividend yield is 2.54% and it has grown by 9% annually over the previous 10-years with last year’s increase being 5%.
Rotork plc – New Dividend Champion (25 years)
Rotork plc (ROR.L) is a £2B manufacturing company of industrial actuators and flow control products . The company is organized into four operating segments – Controls (55% revenue – the design, manufacture and sale of electric actuators), Fluid Systems (32% revenue – the design, manufacture and sale of pneumatic and hydraulic actuators), Gears (8% revenue – design, manufacture and sale of gearboxes) and Instruments (4% revenue – high precisions pneumatic controls and power transmission products).
Rotark was also previously listed as a 21-year Contender and has been promoted due to additional dividend history analysis resulting in a revised 25-year growth.
The dividend yield is 2.1% and it has grown by 12.7% annually over the last 10 years with last year’s increase being 10%.
Spectris plc – New Dividend Champion (25 years)
With a £2.4B market cap, Spectris plc (SXS.L) is an engineering company that develops and manufactures precision instrumentation and controls. The company is organized in four segments – Materials Analysis (products to assess and quantify materials before or after manufacturing), Test & Measurement (measurement products for design and manufacturing) , In-Line Instrumentation (analytical measurements for various industries) and Industrial Controls (monitor and control production). Rotark is geographically diversified with 32% of sales from Europe, 31% from North America, 30% from Asia and 7% from the rest of the world.
Spectris was also previously listed as a 21-year Contender and has been promoted due to additional dividend history analysis including a 2:1 stock split in 1994 resulting in a revised 25-year growth.
The dividend yield is 2.1% and it has grown by 12.5% annually over the last 10 years with last year’s increase being 9.3%.
Weir Group plc – New Dividend Champion (25 years)
Weir Group plc (WEIR.L) is a diverse industrial company operating in three divisions – Minerals (54% sales – products to support mining and materials processing), Oil & Gas (33% sales – upstream pressure pumping, pressure control and downstream refining) and Power & Industrial (13% sales – valves, pumps and turbines). It has a market cap of £1.8B.
Weir was also previously listed as a 21-year Contender and has been promoted due to additional dividend history analysis including a 2:1 stock split in 1993 resulting in a revised 25-year growth.
The dividend yield is 0.17% and it has grown by 14.4% annually over the last 10 years with last year’s increase being 24%.
Shire Pharmaceuticals plc – New Dividend Contender (11 years)
Shire wasn’t included in previous versions of the List as the Yahoo data showed only a 3-year growth. I’ve used the dividend history reported by Shire on their website which provides values in both USD and UKP. These values increased the dividend growth from 3 to 11 years.
The dividend yield is 0.27% and it has grown by 28% annually over the last 10 years with last year’s increase being 9.8%.
Brooks Macdonald (BRK.L) – New Dividend Contender (10 years)
Brooks Macdonald is a private client financial advisory and asset management company with a £184M market cap. It reports in four segments – Investment Management, Financial Planning, Fund & Property Management and the Channel Islands.
Brooks Macdonald was a former 9-year Dividend Challenger that increased its dividend in 2014 and now has 10 years of dividend growth.
The dividend yield is 1.9% and it has grown by 36% annually over the last 5 years with last year’s increase being 15.6%.
PayPoint plc (PAY.L) – New Dividend Contender (10 years)
PayPoint plc (PAY.L) is a payment processing company with a £600M market cap. It reports under one operating segment but focuses on two main areas – Retail Networks (with point of sale terminals in many small stores in the UK, Romania and Ireland) and Mobile & Online (parking permits & mobile purchases). It also has a joint venture with Yodel offering parcel drop-off and pick-up in convenience stores.
PayPoint was a former 9-year Dividend Challenger that increased its dividend in 2014 and now has 10 years of dividend growth.
The dividend yield is 3.97% and it has grown by 13% annually over the last 5 years with last year’s increase being 14%.
Abcam plc (ABC.L) – New Dividend Challenger (9 years)
The dividend yield is 1.65% and it has grown by 26% annually over the last 5 years with last year’s increase being 10%.
Companies removed from the list
The following companies were removed from the January 2015 list. Companies are removed if they fail to increase their calendar year dividend. The Summary tab in the List contains some more details on the particular reason for the deletion.
|AMIAD WATER SYSTE||AFS||6|
|AVEVA Group PLC||AVV||4|
|Babcock International Group PLC||BAB||13|
|Cineworld Group PLC||CINE||6|
|Costain Group PLC||COST||6|
|Dairy Crest Group PLC||DCG||4|
|Domino’s Pizza Group PLC||DOM||14|
|FALKLAND ISLND HL||FKL||5|
|Friends Life Group Ltd||FLG||4|
|Hyder Consulting PLC||HYC||10|
|Intermediate Capital Group PLC||ICP||4|
|Micro Focus International PLC||MCRO||6|
|Millennium & Copthorne Hotels PLC||MLC||4|
|RECKITT BENCK GRP||RB||12|
|Randgold Resources Ltd||RRS||7|
|Smith & Nephew PLC||SN||7|
|Spirent Communications PLC||SPT||5|
|Serco Group PLC||SRP||21|
|Synergy Health PLC||SYR||13|
|UDG Healthcare PLC||UDG||5|
|XP Power Ltd||XPP||5|
There were 25 new entries to the Near-Challengers list – companies with a 4-year growth history. I’ve not listed them here but they can be seen on the Summary tab in the “Additions” section.
Well that’s it for January – I’ll be continuing to do further research and improve accuracy as well as find a way to add current dividend yield to the List for the next version in February. Please let me know if you see any errors in the List, thank you!
Quote of the day
The starting point of all achievement is desire.