Ted Baker is an interesting company.
It started life in 1988 as a single store in Glasgow, selling its own brand of men’s shirts. 30 years later it’s listed in the FTSE 250, has several hundred stores and concessions and generates revenues of more than £500 million and net profits of more than £50 million.
That happy little success story is somewhat interesting, but as an investor what’s more interesting is the company’s near-perfect growth record.
What do I mean by “near-perfect”?
Well, Ted Baker listed on the London Stock Exchange in 1997 and from then onwards its revenues and dividends (which it started paying in 1999) have increased every single year. And if it wasn’t for a minor one-year decline after the financial crisis, its profit growth would be just as impressive.
As a defensive value investor I find that sort of consistency very interesting, along with its double-digit growth rate and near-3% dividend yield.
And so, following a polite nudge from long-time blog commenter “LR”, I decided to review Ted Baker in this month’s Master Investor magazine:
Is Ted Baker the perfect dividend growth stock?
Disclosure: At the start of August (a couple of weeks after writing this review) I added Ted Baker to the Model Portfolio and my personal portfolio.