Top dividend payers in the UK
You may conclude that 10 years of rising dividends is something that investors should be extremely happy with, so 25 years of increased dividends is remarkable. It is a fantastic achievement, especially given the severe drop since 2007 brought on by the credit crunch, banking meltdown and economic recession.
Here are the 'five-star firms' that have produced a quarter-century of unbroken dividend increases. Two are in the blue-chip FTSE 100 index, while the other three are members of the FTSE 250 index.
Read all about it!
Greggs
Greggs the Baker can be found on most British high streets.
To me, Greggs' success is obvious from the queues that form outside its shops around lunchtime -- full of people keen to buy their Steak Bakes or Greggs' best-seller, the humble sausage roll (of which it sells nearly three million a week).
Greggs is based in Newcastle. It was formed over 70 years ago and now has over 1,400 bakery shops across the UK. It floated on the London Stock Exchange in 1984. Greggs' stated aim is to increase its dividends roughly in line with its earnings per share.
The proof of the pudding is in the eating:
| Year | Dividend |
|---|---|
| 2010 | 16.6p |
| 2005 | 9.6p |
| 2000 | 4.5p |
| 1995 | 2.3p |
| 1990 | 1.2p |
As you can see, Greggs' dividend has roughly doubled every five years, which is a tremendous achievement. Keeping this up will be a very tall order, but would you bet against them.
Halma
Although Halma is less well known than Greggs, this British engineering firm is a world leader in industrial sensors and safety devices, with a corporate history dating back to 1894. It listed on the London Stock Exchange in 1972 and has grown its earnings per share and dividend by almost 20% per year.
Here is what Halma has Engineered in terms of dividend growth:
| Year | Dividend |
|---|---|
| 2010 | 8.50p |
| 2005 | 6.50p |
| 2000 | 3.98p |
| 1995 | 1.60p |
| 1990 | 0.58p |
PZ Cussons
PZ Cussons is a leading manufacturer of personal healthcare products and consumer goods, best known for Imperial Leather and Pearl soaps, Cussons baby lotion, and Carex hand-wash. It was founded in 1879 and was known as Paterson Zochonis after its founders' surnames, the firm was renamed PZ Cussons in 2002.
This dividend record is sure to get you in a laver
| Year | Dividend |
|---|---|
| 2010 | 5.90p |
| 2005 | 3.53p |
| 2000 | 2.15p |
| 1995 | 1.50p |
| 1990 | 0.95p |
Even after 130 years of existence, PZ Cussons remains able to raise its dividend by 10% to 12% a year. Given the global economic turmoil since 2007, this is a remarkable show of strength.
The company's record of dividend increases actually goes back an amazing 37 years!
Royal Dutch Shell
Keeping the dividend investor well oiled, here is the track record!
| Year | Dividend |
|---|---|
| 2009 | 106.25p |
| 2004 | 58.99p |
| 1999 | 48.72p |
| 1994 | 31.44p |
Tesco
Tesco increased it's dividend yet again today (5/10/11) More food for thought!
| Year | Dividend |
|---|---|
| 2010 | 13.05p |
| 2005 | 7.56p |
| 2000 | 4.48p |
| 1995 | 2.87p |
| 1990 | 1.39p |
With increases of 9% to 14% a year since 1999, Tesco performance is excellent. Clearly, one day the supermarket will run out of markets to dominate, but this ex-growth period seems some way off. Warren Buffett thinks so. He has increased his holding in Tesco is the past few weeks.
