Tue. Oct 19th, 2021

Key points:

  • The UK Dividend Aristocrats Index is created by S&P and is based on a managed dividend policy of growing or stable dividends for at least 10 consecutive years.
  • Only 40 UK stocks are members of this list.
  • In Europe, it is not uncommon to focus on paying a consecutive dividend (consecutive years) to shareholders.
  • By showing the recent performance of dividend aristocrats, some active investors in dividend growth may identify relative bargains.

Performance of UK aristocrats July 2021

Last month, British dividend aristocrats gained 3.31%, a 13.16% year-on-year total return. As a benchmark, S&P UK gained 0.11% in July.

The total annualized return over ten years is 5.87% for UK dividend aristocrats. The yield on the indicated dividend is around 4.33% and the projected average PE is 14.4 for the shares in this index.
Yield-aristocrats-UK dividend-2021

UK dividend aristocrats change by mid-2021

In June 2021, S&P announced an update to the Monthly Dividend Review (“MDR”) for the UK and high-yield euro dividend aristocrats.

A relevant change is to focus more on the quality of the dividend. He The constituent selection rule is now:

“The shares must have increased or maintained stable dividends for at least ten consecutive years. Stocks it cannot have an indicated yield higher than 10% from the index rebalancing reference date. In addition, they must constitute new indices they have a maximum dividend payment ratio of 100% and the existing components of the index must have a non-negative dividend payment ratio ”

The new UK dividend aristocrats added to the index in July are:

  • Diploma plc
  • BAE Systems plc
  • Electocomponents plc
  • Rio TInto Group plc
  • Dechra Pharmaceuticals plc
  • Admiral Group
  • Primary health properties plc

The following table shows the 40 constituents, with the dividend yield indicated and shows the returns prior to last month and the previous year.

UK performance table-aristocrats-dividend-2021

The ten most profitable British aristocrats

The average dividend yield for all British dividend aristocrats is around 4.3% at the time of writing. Here are the ten highest yields of British dividend aristocrats:

top-10-dividend-yield-uk-aristocrats-2021

UK Dividend Aristocrat # 10: BAE Systems

Dividend yield: 4.2%

Dividend increase or maintenance: 21 years

BAE Systems PLC. participates in the design, development, manufacture and support of defense and aerospace systems used in air, land, sea and space.

UK aristocrat dividend # 9: Tate & Lyle

Dividend yield: 4.2%

Dividend increase or maintenance: 14 years

Tate & Lyle PLC provides ingredients and solutions to the food, beverage and other industries. Their products include dairy, beverages, bakery and comforts, sweeteners and starches. Its segments are special food ingredients and bulk ingredients.

UK aristocrat dividend # 8: Ashmore group

Dividend yield: 4.3%

Dividend increase or maintenance: 10 years

Ashmore Group PLC is engaged in the provision of investment management services. The company is a fund manager on investment issues such as foreign debt, local currencies, corporate debt, combined debt, alternatives and others.

UK aristocrat dividend # 7: Moneysupermarket.com

Dividend yield: 4.5%

Dividend increase or maintenance: 10 years

Moneysupermarket.com Group PLC provides financial services, research tools and products through three websites. It operates businesses across five segments: money, insurance, travel, home services and MoneySavingExpert.com.

UK Dividend Aristocrat # 6: IG Group Holdings

Dividend yield: 4.9%

Dividend increase or maintenance: 10 years
United Utilities Group PLC is primarily engaged in utility services. The company, through its subsidiaries, owns and manages a regulated network of water and wastewater.

UK Dividend Aristocrat # 5: GlaxoSmithKline Plc

Dividend yield: 5.6%

Dividend increase or maintenance: 10 years

GlaxoSmithKline PLC creates, discovers, develops, manufactures and markets pharmaceuticals such as respiratory and antiviral products, vaccines, over-the-counter (OTC) drugs and health-related consumer products.

UK Dividend Aristocrat # 4: Jupiter Fund Management Plc

Dividend yield: 6.2%

Dividend increase or maintenance: 10 years

Jupiter Fund Management PLC is a fund manager involved in the management of equity investments on behalf of retail, institutional and private client investors through products, including British and offshore investment funds, segregated mandates and trusts. investment.

UK Dividend Aristocrat # 3: Legal & General Group Plc

Dividend yield: 6.4%

Dividend increase or maintenance: 12 years
Legal & General Group PLC sells insurance products and other financial services. Performs long-term life and savings insurance business, investment management and general health and insurance business.

UK aristocrat dividend # 2: Phoenix Group Holdings Plc

Dividend yield: 6.9%

Dividend increase or maintenance: 10 years

Phoenix Group Holdings is a consolidator specializing in closed life and pension funds. It manages closed life funds protecting and enhancing the interests of the insured.

UK Aristocrat Dividend # 1: British American Tobacco Plc (BAT)

Dividend yield: 8.0%

Dividend increase or maintenance: 24 years

British American Tobacco PLC manufactures and sells cigarettes and other tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans brands. It also offers steam products, such as electronic cigarettes, and tobacco heating products.

Other sources of dividend investment ideas

There are several lists to quickly examine companies that pay rising dividends.

Alongside selecting the right dividend stocks, the important principles for successful long-term investing are Discipline, Diversification, Defensive, and indeed Dividend. Read more in our free ebook.

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