3 More Of The Most Successful Companies In The FTSE 100: Reckitt Benckiser Group Plc, Burberry Group plc And Hargreaves Lansdown PLC

According to their profit and dividend performance, Reckitt Benckiser Group Plc (LON:RB), Burberry Group plc (LON:BRBY) and Hargreaves Lansdown PLC (LON:HL) are three of the most successful shares in the FTSE 100.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Reckitt Benckiser

A huge range of premium domestic brands are owned by FTSE 100 company Reckitt Benckiser (LSE: RB). Such products include Dettol, Harpic, Calgon and Nurofen. RB leverages the pricing power of these brands to deliver big returns for its shareholders.

Since 2007, earnings per share (EPS) at RB has increased from 123.3p to 263.5p. In that time, dividends have grown from 55.0p per share, to 134p.

Forecasts for the next two years suggest that future growth will be more modest. The consensus of analyst expectations is for EPS to increase by 1.9% this year and 4.8% the next. Dividend growth is forecast to outstrip this, rising 3.7% this year and 5.7% the next.

RB shares are today priced at 17.6 times forecasts for 2013.

Burberry

They say that fashion is a fickle business. That hasn’t stopped Burberry (LSE: BRBY) consistently powering ahead. Ten years ago, Burberry reported total sales for the year of €590m. In the most recent full year, revenues hit €2bn.

Sales growth has translated well into profit and dividend increases. In the last five years, EPS at Burberry has advanced from 27.6p to 81.5p. In that time, dividends have increased from 12.0p to 29.0p.

Burberry is forecast to report a slight fall in earnings this year before returning to growth. Dividends are expected to increase this year and next. That puts the shares today on a 2015 P/E of 16.1 (Burberry has a March year-end) and a projected yield of 2.6%.

Hargreaves Lansdown

Investment service provider Hargreaves Lansdown (LSE: HL) is the dominant player in its market. The company is the go-to organisation for anyone looking to invest in managed funds.

Hargreaves Lansdown has grown its revenues from ?100m in 2007 to ?240m in 2012. In that time, EPS has increased from 7.9p to 24.8p. Dividends have increased from 3.0p per share to 15.8p. That’s a compound annual dividend growth rate of nearly 40%.

This strong growth is forecast for continue. Consensus is for Hargreaves Lansdown to report a 26% increase in EPS this year, followed by another 19% of growth in 2014. That’s a 2014 P/E of 24.3 times earnings, with an expected dividend yield of 3.5% by 2014.

Hargreaves Lansdown’s track record and the long-term nature of much of its business has seen the shares earn a premium rating. If you are searching for companies that will continue to reward investors for decades, check out the latest Motley Fool research report “5 Shares For The Long Run”. This analysis is totally free and will be delivered to your inbox immediately. Just click here to get your copy today.

> David does not own shares in any of the above companies. The Motley Fool has recommended shares in Burberry.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

After it crashed 25%, should I buy this former stock market darling in my Stocks and Shares ISA?

Harvey Jones has a big hole in his Stocks and Shares ISA that he is keen to fill. Should he…

Read more »

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

How’s the dividend forecast looking for Legal & General shares in 2025 and beyond?

As a shareholder, I like to keep track of the potential dividend returns I could make from my Legal &…

Read more »

artificial intelligence investing algorithms
Investing Articles

Could buying this stock with a $7bn market cap be like investing in Nvidia in 2010?

Where might the next Nvidia-type stock be lurking in today's market? Our writer takes a look at one candidate with…

Read more »

Investing Articles

Is GSK a bargain now the share price is near 1,333p?

Biopharma company GSK looks like a decent stock to consider for the long term, so is today's lower share price…

Read more »

Snowing on Jubilee Gardens in London at dusk
Investing Articles

Could December be a great month to buy UK shares?

Christopher Ruane sees some possible reasons to look for shares to buy in December -- but he'll be using the…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

Sticking to FTSE shares, I’d still aim for a £1,000 monthly passive income like this!

By investing in blue-chip FTSE shares with proven business models, our writer hopes he can build sizeable passive income streams…

Read more »

Growth Shares

BT shares? I think there are much better UK stocks for the long term

Over the long term, many UK stocks have performed much better than BT. Here’s a look at two companies that…

Read more »

British Pennies on a Pound Note
Investing Articles

After a 540% rise, could this penny share keep going?

This penny share has seen mixed fortunes in recent years. Our writer looks ahead to some potentially exciting developments in…

Read more »