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41 UK Dividend Growth Kings You Must Know

Recently, I stumbled on Twitter and found an interesting tweet about a UK stock that has hiked currently its dividend. 

As you might know, I love stocks that increase dividends, not because I'm an event driven investor, but because I love it to see that the company has a good running operational business and wants to share its success with their shareholders.

The tweet came from a Guy named @UKDividendKings. I check out his site and saw his impressing work. He compiled all stocks from the FTSE 350 with more than 10 consecutive years of dividend growth in a list. 


These are his detailed criteria:

- FTSE 350 member (excluding Trusts)
- £1bn+ market cap
- Minimum of 10 years consecutive, unbroken dividend raises – no cuts, no holding static


41 UK-Dividend Kings

UK Dividend Kings (Click to Enlarge);
Source: http://ukdividendkings.com/list

For sure, I never thought that there were so many companies with a long history of consecutive dividend growth. I knew that the American market offers around 500 or a few companies but 41 in the UK?


Well, back to the list, I love the overview with dividend cover ratio and picked a few companies that I personally like or I often hear from. 


Tesco is not on the list but pays one of the highest yields but the market rumors that Tesco will cut future dividends. There are also rumours about Vodafone's dividend safeness. 

The list shows a dividend cover ratio of 1.59.

Stocks are not cheap


Everybody tells it and it's somehow true: stocks aren't cheap for the moment. With P/E's above 20 or more, the market is definitely highly valuated.

My favorite UK-Dividend Kings are... 

Vodafone Group (NASDAQ:VOD) has a market capitalization of $89.62 billion. The company employs 92,812 people, generates revenue of $63.711 billion and has a net income of $18.794 billion. Vodafone Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.477 billion. The EBITDA margin is 29.00 percent (the operating margin is -10.20 percent and the net profit margin 29.50 percent).

Financial Analysis: The total debt represents 20.82 percent of Vodafone Group’s assets and the total debt in relation to the equity amounts to 35.82 percent. Due to the financial situation, a return on equity of 15.67 percent was realized by Vodafone Group. Twelve trailing months earnings per share reached a value of $6.98. Last fiscal year, Vodafone Group paid $2.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.78, the P/S ratio is 1.41 and the P/B ratio is finally 0.75. The dividend yield amounts to 7.00 percent and the beta ratio has a value of 0.79.

Long-Term Stock Price Chart Of Vodafone Group (VOD)
Long-Term Dividend Payment History of Vodafone Group (VOD)
Long-Term Dividend Yield History of Vodafone Group (VOD)

GlaxoSmithKline (NYSE:GSK) has a market capitalization of $114.57 billion. The company employs 99,817 people, generates revenue of $44.037 billion and has a net income of $9.350 billion. GlaxoSmithKline’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.174 billion. The EBITDA margin is 34.46 percent (the operating margin is 27.58 percent and the net profit margin 21.23 percent).

Financial Analysis: The total debt represents 43.35 percent of GlaxoSmithKline’s assets and the total debt in relation to the equity amounts to 260.75 percent. Due to the financial situation, a return on equity of 84.96 percent was realized by GlaxoSmithKline. Twelve trailing months earnings per share reached a value of $3.23. Last fiscal year, GlaxoSmithKline paid $2.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.80, the P/S ratio is 2.60 and the P/B ratio is finally 9.89. The dividend yield amounts to 5.60 percent and the beta ratio has a value of 0.59.

Long-Term Stock Price Chart Of GlaxoSmithKline (GSK)
Long-Term Dividend Payment History of GlaxoSmithKline (GSK)
Long-Term Dividend Yield History of GlaxoSmithKline (GSK)

British American Tobacco (NYSEMKT:BTI) has a market capitalization of $111.66 billion. The company employs 87,485 people, generates revenue of $25.354 billion and has a net income of $6.976 billion. British American Tobacco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.339 billion. The EBITDA margin is 40.78 percent (the operating margin is 36.21 percent and the net profit margin 27.52 percent).

Financial Analysis: The total debt represents 43.51 percent of British American Tobacco’s assets and the total debt in relation to the equity amounts to 176.30 percent. Due to the financial situation, a return on equity of 55.35 percent was realized by British American Tobacco. Twelve trailing months earnings per share reached a value of $6.80. Last fiscal year, British American Tobacco paid $8.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.18, the P/S ratio is 4.40 and the P/B ratio is finally 10.21. The dividend yield amounts to 4.11 percent and the beta ratio has a value of 0.74.

Long-Term Stock Price Chart Of British American Tobacco (BTI)
Long-Term Dividend Payment History of British American Tobacco (BTI)
Long-Term Dividend Yield History of British American Tobacco (BTI)

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Diageo (LON:DGE) has a market capitalization of $44.00 billion. The company employs 26,588 people, generates revenue of $10.258 billion and has a net income of $2.264 billion. Diageo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.738 billion. The EBITDA margin is 36.44 percent (the operating margin is 26.39 percent and the net profit margin 22.07 percent).

Financial Analysis: The total debt represents 40.12 percent of Diageo’s assets and the total debt in relation to the equity amounts to 135.04 percent. Due to the financial situation, a return on equity of 33.64 percent was realized by Diageo. Twelve trailing months earnings per share reached a value of $0.93. Last fiscal year, Diageo paid $0.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.88, the P/S ratio is 4.33 and the P/B ratio is finally 6.50. The dividend yield amounts to 2.93 percent and the beta ratio has a value of 0.61.

Long-Term Stock Price Chart Of Diageo (DGE)
Long-Term Dividend Payment History of Diageo (DGE)
Long-Term Dividend Yield History of Diageo (DGE)

Sage Group (LON:SGE) has a market capitalization of $4.30 billion. The company employs 13,242 people, generates revenue of $1.376 billion and has a net income of $47.50 million. Sage Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $406.10 million. The EBITDA margin is 29.51 percent (the operating margin is 13.12 percent and the net profit margin 3.45 percent).

Financial Analysis: The total debt represents 24.92 percent of Sage Group’s assets and the total debt in relation to the equity amounts to 62.64 percent. Due to the financial situation, a return on equity of 4.13 percent was realized by Sage Group. Twelve trailing months earnings per share reached a value of $0.21. Last fiscal year, Sage Group paid $0.11 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.06, the P/S ratio is 3.13 and the P/B ratio is finally 5.08. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.87.

Long-Term Stock Price Chart Of Sage Group (SGE)
Long-Term Dividend Payment History of Sage Group (SGE)
Long-Term Dividend Yield History of Sage Group (SGE)

Smith & Nephew (NYSE:SNN) has a market capitalization of $15.55 billion. The company employs 11,036 people, generates revenue of $4.351 billion and has a net income of $556.00 million. Smith & Nephew’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.323 billion. The EBITDA margin is 30.41 percent (the operating margin is 18.62 percent and the net profit margin 12.78 percent).

Financial Analysis: The total debt represents 6.72 percent of Smith & Nephew’s assets and the total debt in relation to the equity amounts to 9.66 percent. Due to the financial situation, a return on equity of 14.02 percent was realized by Smith & Nephew. Twelve trailing months earnings per share reached a value of $3.12. Last fiscal year, Smith & Nephew paid $1.37 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.90, the P/S ratio is 3.57 and the P/B ratio is finally 3.83. The dividend yield amounts to 1.58 percent and the beta ratio has a value of 0.87.

Long-Term Stock Price Chart Of Smith & Nephew (SNN)
Long-Term Dividend Payment History of Smith & Nephew (SNN)
Long-Term Dividend Yield History of Smith & Nephew (SNN)

Associated British Foods (LON:ABF) has a market capitalization of $22.37 billion. The company employs 112,652 people, generates revenue of $13.315 billion and has a net income of $628.00 million. Associated British Foods earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.610 billion. The EBITDA margin is 12.09 percent (the operating margin is 8.17 percent and the net profit margin 4.72 percent).

Financial Analysis: The total debt represents 11.24 percent of Associated British Foods assets and the total debt in relation to the equity amounts to 18.94 percent. Due to the financial situation, a return on equity of 9.76 percent was realized by Associated British Foods. Twelve trailing months earnings per share reached a value of $0.79. Last fiscal year, Associated British Foods paid $0.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 35.95, the P/S ratio is 1.72 and the P/B ratio is finally 3.72. The dividend yield amounts to 1.12 percent and the beta ratio has a value of 0.63.

Long-Term Stock Price Chart Of Associated British Foods (ABF)
Long-Term Dividend Payment History of Associated British Foods (ABF)
Long-Term Dividend Yield History of Associated British Foods (ABF)

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*I am long GSK, BTI, DGE, SNN. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

3 comments:

  1. Hi, interesting post - I am interested in looking at these outliers. I suspect the VOD yield is too good to be true - the forecast I get for the yield over the long term is about half of the 7% figure you quote. See here:

    http://www.idivs.org/ticker/VOD/year/2014/month/8/day/28/preliminary/false

    Curiously though, SNN's dividend yield may be set to double over the short term - not much data on that forecast, so it's speculative - but nevertheless possibly useful.

    http://www.idivs.org/ticker/SNN/year/2014/month/8/day/28/preliminary/false

    ReplyDelete
    Replies
    1. Hi John, I also think that VOD will cut dividends but they have a great asset in Africa. If they would sell some of its crown juwels, they could reduce the debt and force aquititions in Europe within the calble space.

      Delete
  2. I've also been compiling a list of UK stocks dividend histories, although I use different criteria than the UK dividend kings site you mentioned.

    Based on a calendar year basis, I'm showing 50 UK stocks with a 10+ year growth and a total of 181 with a 5+ year growth. I include the AIM listed stocks in my list, not just FTSE and I do not exclude based on market cap.

    Incidentally I removed BLT from my list in 2014 since its dividends were less than the prior year in UK sterling.

    Anyway, you can find my list at UK Dividend Champions List if you're interested.

    Best wishes,
    -DL

    ReplyDelete

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