Kevin Godbold assesses these blue chips for future dividend growth.
In an outcome that's tough on investors, the FTSE 100 (UKX) has failed to deliver a rising dividend payout over the last few years.
Just look at the iShares FTSE 100 ETF (LSE: 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:
| Year | 2007 | 2008 | 2009 | 2010 | 2011 |
|---|
| Dividend per share | 19.1p | 20.2p | 17.1p | 16.2p | 18.1p |
That's disappointing. But some companies within London's premier index have performed well on dividends, despite these austere times, and this series is seeking them out.
But before you read about the dividend stars I've found, I would strongly suggest you look at the dividend choices of super-investor Neil Woodford.
Mr Woodford is one of the UK's most successful fund managers and specialises in identifying companies with strong income potential. Indeed, such investments have helped him produce a 347% return between 1996 and 2011 -- a market-trouncing performance that included nine straight years of beating the index.
What's more, you can learn more about Mr Woodford's favourite holdings -- and how he generated such wonderful profits -- within this free Motley Fool report.
I strongly recommend you download "8 Shares Held By Britain's Super Investor" today, as many of Mr Woodford's selections look like excellent dividend-raising shares to me. Best of all, the report is free. But hurry, this Neil Woodford report is available for a limited time only.
You can read my company assessments to date by clicking the links below. I hope my research assists your investment decisions:
Aberdeen Asset Management: A FTSE 100 Dividend-Raising Star
Amec: A FTSE 100 Dividend-Raising Star
AstraZeneca: A FTSE 100 Dividend-Raising Star
Babcock: A FTSE 100 Dividend-Raising Star
BAE Systems: A FTSE 100 Dividend-Raising Star
BHP Billiton: A FTSE 100 Dividend-Raising Star
British American Tobacco: A FTSE 100 Dividend-Raising Star
British Sky Broadcasting Group: A FTSE 100 Dividend-Raising Star
Burberry: A FTSE 100 Dividend-Raising Star
Capita: A FTSE 100 Dividend-Raising Star
Compass Group: A FTSE 100 Dividend-Raising Star
Croda: A FTSE 100 Dividend-Raising Star
GlaxoSmithKline: A FTSE 100 Dividend-Raising Star
Hargreaves Lansdown: A FTSE 100 Dividend-Raising Star
Imperial Tobacco: A FTSE 100 Dividend-Raising Star
Johnson Matthey: A FTSE 100 Dividend-Raising Star
National Grid: A FTSE 100 Dividend-Raising Star
Next: A FTSE 100 Dividend-Raising Star
Prudential: A FTSE 100 Dividend-Raising Star
Reckitt Benckiser: A FTSE 100 Dividend-Raising Star
SABMiller: A FTSE 100 Dividend-Raising Star
Sainsbury: A FTSE 100 Dividend-Raising Star
Tesco: A FTSE 100 Dividend-Raising Star
WPP: A FTSE 100 Dividend-Raising Star
If you are an ambitious investor hoping to profit from this uncertain economy, I urge you to read "10 Steps To Making A Million In The Market" today -- it could transform your wealth. Click here now to request your free, no-obligation copy. The Motley Fool is helping Britain invest. Better.
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