5 Dividend-Raising UK Stars


In a time of overall decline for Britain's dividend payers, Kevin Godbold of The Motley Fool UK evaluates five names that could buck the trend.

In an outcome that's tough on investors, the FTSE-100 has failed to deliver a rising dividend payout over the last few years.

Just look at the iShares FTSE-100 ETF (London: ISF), for example. This is an exchange traded fund that tracks the benchmark index, and we can see the aggregate payment from Britain's top 100 companies has yet to regain its pre-recession peak:

That's disappointing. But some companies within London's premier index have performed well on dividends, despite these austere times, and this series aims to seek them out.

Over the last few weeks, I've looked at Prudential (London: PRU), Aberdeen Asset Management (London: ADN), Next (London: NXT), Tesco (London: TSCO) and Rolls-Royce Holdings (London: RR). Let's see how each scored against my dividend growth and valuation criteria (each score in the chart is out of a maximum possible five):

There is plenty of industry diversification available with this batch of dividend-raising stars.

Although not immune to economic cycles, insurance giant Prudential managed to maintain its progressive dividend policy through the recent financial crisis.