S&P Europe-350 Dividend Aristocrats
Eoin Treacy's view According to Standard & Poors there are 39 companies in the Europe-350 Index which have increased their dividends every year for at least the last 10 years.
I last first posted the European list on September 15th but since then there have been a number of changes. This is at least in part because the timeframe concerned is 10 years instead of 25 for the S&P 500 Dividend Aristocrats. This creates a similar sized list for Europe but there is greater turnover.
The S&P Europe 350 Index yields 3.41% compared to the average of 3.32% for the S&P Europe 350 Dividend Aristocrats Index. At least part of the reason for this is that a number of the companies excluded from the Dividend Aristocrats over the last 8 months did not increase their dividends but didn't cut them either. This has helped to flatter the wider Index's returns.
The S&P Europe 350 Total Return Index gave up its entire 2003-2008 advance during the credit crisis and has since retraced more than half of the decline. It remains in a relatively consistent medium-term uptrend and a sustained move below 1500 would be required to begin to question potential for a continuation of the ranging uptrend.
The S&P Europe 350 Dividend Aristocrats Total Return Index had an equally steep decline during the credit crisis but has rebounded more emphatically, particularly over the last six weeks. It continues to find support in the region of the 200-day MA on reactions and a sustained move below that trend mean would be required to question medium-term upside potential.
This spreadsheet ranks the constituents of the S&P Europe 350 Dividend Aristocrats by sector and then by Gross 12-month Yield.
This Chart Library Performance Filter ranks the constituents of the S&P Europe 350 Dividend Aristocrats by 12-month performance.
Diageo is globally diversified, yields 3.34% and shares a high degree of commonality with other beverage manufacturers. It is currently somewhat overextended relatively to the MA and looks susceptible to a pullback. However, a clear downward dynamic would be required to indicate that a reversionary process is beginning to unfold.
Aggreko (1.12%) has probably benefitted more than most from the demand for generators following the Japanese tsunami. It found support in the region of the 200-day MA from March and has since moved on to new high ground. A sustained move below 1750p would now be required to question the consistency of the medium-term uptrend.
Bunzl (3.39%) is more leveraged to the USA and Europe than the growth of the global economy. However, the share has been consolidating mostly above 700p since early 2010 and is currently rallying towards the upper side of the range near 800p. A sustained move above that level, which looks more likely than not over the medium-term, would reaffirm the uptrend.
L'Oreal is globally diversified and yields 2.06%. It continues to range with an upward bias and a sustained move below €78 would be required to question potential for continued higher to lateral ranging.
Nestle (3.37%) found support at the lower side of its yearlong range in March and has rallied to the upper side. It will need to sustain a move above CHF55 to indicate a return to medium-term demand dominance. Associated British Foods (2.48&) has also bounced back impressively from its March low, Kerry Group (0.97%) and Danone (2.57%) are both somewhat overextended relative to their respective 200-day MAs. Colruyt (2.25%) is notable for its consistency over the last decade. The share has been prone to relatively lengthy consolidations but these have all occurred one above another. It has also bounced back impressively from its March low and a sustained move below €35 would be required to question the consistency of the medium-term uptrend.
Compass Group yields 3.3% and its catering business is globally diversified. Following an impressive rally from Q3 2009 it has been ranging with an upward bias above 500p and is currently testing 600p. A sustained move below 550p would be required to question medium-term scope for further upside.
Johnson Mathey yields 2.16% and bounced back impressively from its March lows. It remains in a relatively consistent medium-term uptrend and is now retesting the 2000p area. A sustained move below 1800p would be required to question medium-term upside potential.
BHP Billiton yields 2.65% and the fact that it is the only miner on the list is a testament to the strength of the company's balance sheet. It has paused in the region 2500p since November and appears to have found support in the region of the 200-day MA. A sustained move below 2100p would be required to question medium-term scope for some additional upside.
Oil services company, Amec (2.54%), found at least short-term support in the region of the 200-day MA last week and a sustained move below 1100p would be required to check scope for some additional upside.
Novo Nordisk yields 1.54% and remains in a relatively consistent medium-term uptrend as it continues to revert towards the 200-day MA. A sustained move below DKK600 would be required to question the consistency of the advance. Other pharmaceuticals such a Novartis (4.03%), Roche Holding (4.42%) and Sanofi (4.55%) are in varying stages of base formation development.
Following an impressive acceleration, ARM Holdings (0.56%) hit a medium-term peak in February. It has so far held the majority of its advance and has unwound at least part of the overextension relative to the 200-day MA. The almost 3-year progression of higher reaction lows remains intact and a sustained move below 500p would be required to question the broad consistency of the advance.
All three Tobacco companies on the list, British American Tobacco, Swedish Match and Imperial Tobacco remain in consistent medium-term uptrends.
While focused on the UK rather than being a global business, Scottish & Southern Energy yields 5.71%. It completed a first step above its base in early April and has been consolidating below 1400p for the last month. A sustained move below 1300p would be required to check current scope for additional upside.