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The stocks and trusts with the longest unbroken dividend record
Markets
by James Phillipps on Sep 27, 2010 at 12:23
Much has been made of the hunt for income and the lack of true dividend stars in the FTSE highlights why.
Whereas in the US, investors have 92 companies in the elite group of stocks that have achieved 25 years or more of unbroken annual dividend growth, there are just five such firms in the UK, excluding investment trusts.
In an environment where cash is yielding close to zero and yields on government bonds are at or near to historic lows, the demise of bank dividends and BP’s retrenchment has thrown this into sharp focus.
The five UK dividend aristocrats are certainly an eclectic bunch, varying in size from international blue-chip giant Tesco to low cost bakery chain Greggs.
Here we highlight the UK’s unique club of dividend kings and look at the top five income trusts with the longest track records of dividend growth, which shows just how much they put the wider corporate sector to shame. Some 15 investment trusts have managed to grow their payouts annually by 26 years or more.
Top five UK corporate dividend kings
PZ Cussons, 37 years
The soap company is a veteran of the stock market, having been founded in 1879 as a trading post in Sierra Leone. Move forward 130 years and the company is now a £1.48 billion major global player in the soap and cleaning products business. Although its current yield of 1.75% might sound paltry, this has come down markedly over the past year as its share price has soared by over 75%. More impressively still, it has grown its dividend for 37 consecutive years, raising it by 12% this year to 5p per share and this is 2.5x covered. Key holders of the stock include First State Global Emerging Markets Sustainability fund manager David Gait (pictured).
Halma, 31 years
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Look up the funds
- First State Global Emerging Markets A GBP Acc
- M&G Dividend A Inc
- Schroder UK Alpha Plus Inc
- Melchior UK Opportunities GBP B
- Trojan Capital O Acc
- Bankers Investment Trust PLC
Look up the shares
- PZ Cussons PLC
- Halma PLC
- Tesco PLC
- Greggs PLC
- Royal Dutch Shell PLC
- City of London Investment Trus
- Alliance Trust (The) PLC
Look up the investment trusts
Look up the fund managers
- David Gait
- Richard Hughes
- Richard Buxton
- Glen Pratt
- Sebastian Lyon
- Francis Brooke
- Anthony Nutt
- Matthew Strachan
- Neil Tong
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2 comments so far. Why not have your say?
Value Investor
Sep 27, 2010 at 13:42
Your figures for Alliance Trust discount and yield look more like a future forecast than reality. The close on Friday 24th was 336.8p. Net assets were 414.5p including income, 408.8p excluding income. The trailing dividend is 8.1875p giving a trailing yield of 2.43%. The anticipated dividend is 8.25p.
The asset value needs to increase and the discount needs to close to get to your figures !
report thisdavid rogers
Sep 27, 2010 at 14:46
Or better still the company needs to start a policy of buying and cancelling its shares to reduce the present almost 18% discount to something close to the sector average of around 10 or betterstillless
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