Pearson: A FTSE 100 Dividend-Raising Starhttp://www.fool.com/investing/general/2012/12/07/pearson-a-ftse-100-dividend-raising-star.aspx Kevin Godbold
December 7, 2012
LONDON -- In an outcome that's tough on investors, the FTSE 100 (UKX) has failed to deliver a rising dividend payout over the last few years.
Just look at the iShares FTSE 100 ETF (LSE: ISF), for example. This is an exchange-traded fund that tracks the benchmark index, and we can see the aggregate payment from Britain's top 100 companies has yet to regain its pre-recession peak:
But some companies within London's premier index have performed well on dividends, despite these austere times, and this series aims to seek them out. One such name is Pearson (LSE: PSON) (NYSE: PSO).
The big question is, can the company's dividend continue to out-perform its index. Let's take a closer look.
Pearson is an international publishing house. With the shares at 1184p, the market cap is 9714 million pounds. This table summarizes the firm's recent financial record:
So, the dividend has increased by 33% during the last five years -- equivalent to a 7.4% compound annual growth rate.
Recent news is that Pearson has agreed to combine its much-loved Penguin brand with Bertelsmann's Random H