BHP Billiton plc (LON:BLT), Standard Chartered PLC (LON:STAN) and Diageo plc (LON:DGE) are three of the FTSE 100's fastest growing titan shares.
The last five years have been exceptionally tough for the global economy. I have trawled the FTSE 100 to find those companies that grew despite the downturn.
Here are three of the largest FTSE 100 companies that have grown their earnings per share (EPS) by more than 5% a year on average for the last five years.
BHP Billiton
2012 EPS from BHP Billiton (LSE: BLT) (NYSE: BBL.US) was 65% ahead of the 2006 figure. That's an average compound annual growth rate of 10.6% a year. In that time, the BHP dividend has been increased every year, by an average of 19% per annum.
The problem is, earnings have gone up and down in that time as global commodity prices have bounced around. In fact, BHP's profits for 2013 are expected to be down 30.5% on last year's figure. The dividend is forecast to increase 4.5%.
The shares trade on a 2013 price-to-earnings (P/E) ratio of 12.7, with an expected yield of 3.5%.
Standard Chartered
Of the UK-listed banks, Standard Chartered (LSE: STAN) is the most exposed to Asian economies. In recent years, these economies have enjoyed superior growth.
EPS at Standard Chartered has increased in each of the last five years, apart from a 16.3% fall in 2009. Similarly, the dividend was cut 14.3% in 2008 but was increased in every other year.
On average, earnings have risen by 6.9% a year in the last five years at the bank. In that time, the dividend has increased by an average of 4.9% a year.
9% earnings growth is expected for 2013, with an 8.5% dividend increase. This puts the shares on a 2013 P/E of 11.2, with an expected yield of 3.5%. Not a high price for such a successful company.
Diageo
Diageo (LSE: DGE) (NYSE: DEO.US) is the super-brewer behind famous drinks brands such as Guinness, Smirnoff and Jose Cuervo.
In the last five years, earnings at this £47.1bn titan have increased by an average of 14% per annum. This has produced average dividend growth of 5.9% a year. That gap between earnings and dividend growth at the company is expected to narrow with coming results.
Earnings at Diageo are forecast to rise, on average, 10.9% for the next two years. Dividend growth is expected to pick up and run at an average of 9.5%.
Diageo's success comes with a premium rating: the shares today trade at 18.3 times consensus EPS forecasts for 2013. That leaves little room for error and rules Diageo out for value investors.
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> David does not own shares in any of the companies mentioned. The Motley Fool owns shares in Standard Chartered.
