None of the companies included in the FTSE All Share index pass all eight of our dividend yield tests, with only nine companies scoring 7/8.
- Of these, four companies fail the cash conversion test. We require companies’ cash from operations to be more than 100 per cent of operating profits (i.e. earnings before interest and tax expense). Housebuilders Bellway (BWY), Redrow (RDW) and MJ Gleeson (GLE) all fail on this one criteria.
- The three-year dividend growth requirement is the only test failed by British American Tobacco (BATS), Ten Entertainment Group (TEG) and Hollywood Bowl Group (BOWL). Imperial Brands (IMB) fails the stringent dividend cover test.
- Two Aim-listed companies, The Property Franchise Group (TPFG) and Fulcrum Utility Services Limited (FCRM) achieve perfect 8/8 scores.
