U.K. Dividend Aristocrats List: 2024 Rankings by Yield

5. Croda International Plc (LON:CRDA.L)

Dividend Yield as of December 28: 3.23%

Croda International Plc (LON:CRDA.L) is a specialty chemicals company, headquartered in Snaith, England. The company specializes in a diverse range of chemicals and related products. The stock has suffered a lot this year, declining by over 33.4% in the past 12 months. The drop is largely due to the cyclical nature of the chemicals industry. The company’s high fixed costs mean that when revenues fall, profits take a much sharper hit. This type of business carries inherent risks, but Croda also has long-term strengths that make it worth serious consideration, especially at its current low valuation.

Inventory levels are expected to normalize over time, and analysts predict that Croda International Plc (LON:CRDA.L) will perform well when that happens. While its profits tend to decline more steeply than sales during periods of weak demand, they are also expected to rise more rapidly during a recovery. Another key strength lies in the company’s competitive edge, supported by over 1,600 patents. This strong market position will be crucial when demand eventually rebounds.

Croda International Plc (LON:CRDA.L) reported mixed earnings in the first half of 2024. The company reported revenue of £816 million, falling by 7.4% from the same period last year. Its operating profit for the period came in at £114.4 million. Of all the segments, only Consumer Care recorded growth of 3% on a YoY basis. That said, its cash position was promising. The company’s free cash flow came in at £122.7 million, showing a significant 69% growth from the first half of 2023. Its net debt also fell to £507.9 million, from £537.6 million in December 2023.

Croda International Plc (LON:CRDA.L), one of the best FTSE dividend stocks, has a 22-year run of paying regular dividends to shareholders. During this period, the company raised its annual dividend from £0.0759 per share to £0.62 per share. Currently, it offers an interim dividend of £0.47 per share for a dividend yield of 3.23%, as of December 28.