Last Updated December 6, 2016
If you’re looking for dividend growth stocks with progressive dividends and rapid growth you might find this list interesting.
It’s the 10 fastest growing UK-listed “dividend achievers”, which I’ve defined as companies that have increased their dividend every year for the last decade.
I haven’t taken yields or valuations into account; it’s just a raw list so that you can do some checks yourself and put on a watchlist (like Watch My Stocks) if you don’t think they’re cheap right now.
Here’s the list, sorted by the 10-year growth rate (i.e. the Growth column).
| UKVI Rank | Name | Price (£) | Yield (%) | Growth (%) |
|---|---|---|---|---|
| 83 | Aggreko | 16.75 | 1.5 | 23 |
| 48 | Domino’s Pizza UK & IRL | 5.13 | 3 | 22.6 |
| 67 | Croda International | 22 | 2.9 | 22 |
| 102 | NCC Group | 1.93 | 1.8 | 21.9 |
| 135 | Weir Group | 26.35 | 1.5 | 21.8 |
| 184 | ARM Holdings | 8.44 | 0.6 | 21.5 |
| 139 | Aveva Group | 20.62 | 1.3 | 20.5 |
| 120 | Melrose Industries | 2.59 | 2.9 | 20.3 |
| 75 | Inmarsat | 7.36 | 3.9 | 19.7 |
| 87 | Aberdeen Asset Management | 4.52 | 3.5 | 19.7 |
The UKVI Rank is the stock’s rank on my defensive value screen, and generally anything higher (lower number) than 50 I’d consider a potential buy, so of these companies I’d be most interested in the Domino’s Pizza franchise.
The last time I reviewed Domino’s Pizza shares was in August last year. At the time the share price was 544p, it ranked at number 76 (out of about 250 dividend payers) on my screen and at that price I thought the shares were quite attractive, but not super attractive.
The shares are now down to 513p or so and the yield is up to 3%. That’s why their rank has improved which, for me, makes them even more attractive (plus the fundamentals of the company are better today than they were a year ago).
At the other end of the spectrum is ARM Holdings with also has a long-term growth rate of more than 20% a year, but here it’s combined with a yield of just 0.6%.
With a yield like that it’s clear that investors are expect that 20% growth to continue for a very long time, and with a rank of 184 it’s one stock that I’m unlikely to be buying any time soon, despite the company’s obvious qualities.
So there you have it. A group of companies with very consistent, progressive dividends coupled with high growth rates and varying valuations.
Hopefully at least one of those will be worth putting on your watch list.