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Decades Long Dividend Growth: DCC Plc

Published Thu, 30 Jul 2020 13:52:03 -0400 on Seeking Alpha

Seeking AlphaLong Ideas | Services  | IrelandDecades Long Dividend Growth: DCC PlcJul. 30, 2020 1:52 PM ET|| About: DCC plc (DCCPF)by: Retirement PotRetirement Pot Long only, Deep Value, Growth, foreign companiesSummaryDCC is an Irish group focussed mostly on oil and LPG distribution in Europe, but with other businesses too.
It increased its total dividend this year by 5%, its 26th consecutive year of dividend growth.
With a 2.1% yield it is already quite attractive, but for now I am waiting for a market fallback.
DCC (OTC:DCCPF) is a London-listed Irish conglomerate with a dividend growth record of over twenty years continuously. A member of the FTSE-100, it merits consideration for dividend security seekers. Its current yield of 2.1% while okay isn't as attractive as other higher-yielders like BAT (BTI) for now I am staying out, but I do like the business and if shares retrace their lows from earlier this year - or close to them - I will open a position.
DCC: An Energy and Distribution Company With Strong Presence in U.K. and Europe
From its founding in 1976, the company grew with 32 years of unbroken growth. It was Ireland's largest venture capital company before listing. The founder is credited with maximizing return on capital and cash generation, something which I think shines through today as then.
The company operates in four main areas:
LPG - an LPG sales and marketing business with in Europe, U.S. and Asia with a natural gas and electricity offering; Retail & Oil - European sales, marketing and retailing of transport and commercial fuels, heating oils and related products and services; Technology - route-to-market and supply chain for customers; and Healthcare - products and services to healthcare providers and health and beauty brand owners. The key driver for the business, generating almost half of profits, is the LPG division.

Source: company annual report
Although sentiment has been down when it comes to energy stocks,... Read more