There have been virtually 150 dividend cuts throughout the FTSE 100 over the previous decade. It’s not an issue that long-term buyers in Coca-Cola HBC (LSE:CCH), BAE Methods, or Alliance Witan have needed to endure.
On the Coca-Cola bottler, shareholder payouts have risen annually since 2014. BAE’s annual dividends have grown constantly since earlier than the millennium.
However funding belief Alliance Witan blows each corporations out of the water. Annual dividends have risen yearly for greater than 50 years (58, to be exact).
Dividends are by no means, ever assured. Regardless of their sturdy information, even these FTSE 100 shares and funding trusts may disappoint passive revenue chasers if an financial disaster rears its head.
However given the more and more unsure outlook, I feel every of those blue-chip dividend shares deserves critical consideration.
High belief
Let’s kick off with Alliance Witan. Like fellow Footsie funding belief F&C Funding Belief — which has additionally constantly raised dividends for greater than half a century — dividends are underpinned by its broad sector and regional diversification.
In whole, the belief owns shares in 223 completely different world shares. Its holdings are far and extensive, from US tech shares Nvidia to French vitality producer Totalenergies and Indian financial institution HDFC. It additionally has a big dollop of defensive shares (19% of the entire portfolio) to supply added dividend stability.
For 2025, Alliance Witan’s dividend yield is 2.2%, under the index common of three.2%. However in my opinion, that is greater than offset by the potential for extra explosive payout progress. Money rewards have soared 13.9% on common during the last 5 years.
Be conscious {that a} 100% weighting in the direction of equities leaves it uncovered to inventory market volatility.
Defence large
BAE Methods’ dividends have been safeguarded down the years by the long-term stability of defence spending. All through historical past, ‘defending the realm’ has been the number-one precedence of any nation.
The FTSE 100 firm has leveraged this completely with its broad portfolio of market-leading applied sciences. It’s Europe’s largest defence contractor, whose services and products are important to main navy powers together with the US and UK.
Future revenues may come below risk if public funds within the West proceed to deteriorate, placing strain on defence budgets. However because the geopolitical panorama turns into extra harmful, I’m assured arms spending ought to preserve rising to new information, pushing BAE’s earnings and dividends larger.
Annual payouts have grown by 8% on common since 2019. For 2025, the corporate’s dividend yield is 2%.
Coke bottler
Regardless of the specter of fierce competitors, Coca-Cola HBC has nonetheless grown dividends quickly over time. It’s a document I count on to proceed, which is why I personal the tender drinks producer in my very own UK shares portfolio.
The Coca-Cola, Sprite, and Fanta bottler operates within the extremely defensive client staples sector. However as that small collection of names exhibits, this isn’t the one supportive issue behind its regular dividend progress. The agency’s manufacturers stay fashionable throughout the financial cycle, permitting it to lift costs to develop earnings (and shareholder payouts) no matter financial situations.
The bottler has 750 loyal clients throughout Europe, Africa, and Asia. This consists of heavy publicity to rising and creating markets, the place strong gross sales progress helps mild a fireplace below dividends.
Money payouts have risen 10.7% on common over the past 5 years. Coca-Cola HBC’s dividend yield for 2025 is 3%.
The publish Anxious about dividend cuts? 3 of the FTSE 100’s finest dividend growers appeared first on The Motley Idiot UK.
Do you have to make investments £1,000 in Coca-Cola HBC AG proper now?
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Royston Wild has positions in Coca-Cola Hbc Ag. The Motley Idiot UK has advisable BAE Methods and Nvidia. Views expressed on the businesses talked about on this article are these of the author and subsequently might differ from the official suggestions we make in our subscription companies reminiscent of Share Advisor, Hidden Winners and Professional. Right here at The Motley Idiot we imagine that contemplating a various vary of insights makes us higher buyers.
