GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

3 Dividend Kings From The U.K. I Love To Buy

August 21, 2014 | About:

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 impressive work. He compiled all stocks from the FTSE 350 with more than 10 consecutive years of dividend growth in a list.

Check out the list here...42 UK Dividend Kings

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 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. It pays one of the highest yields, but the market rumors that Tesco will cut future dividends. There are also rumors about Vodafone's dividend safeness.

The list shows a dividend cover ratio of 1.59.

My favorite UK-Dividend Kings are...

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.

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.

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.

Check out more of my favorites here....42 UK Dividend Kings...

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 5.0/5 (1 vote)

Voters:

Comments

UKDK
UKDK - 3 weeks ago

Thanks for the mention, I hope you find the UK Dividend Kings list to be useful. I try to keep it as up-to-date as I can manage.

UKDK

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK