LONDON -- The last five years have been exceptionally tough for the global economy. I have trawled the FTSE 100 to find those companies that grew despite the downturn. Here are three of the largest FTSE 100 companies that have grown their earnings per share by more than 5% a year on average for the last five years.
BHP Billiton (BLT +0.00%) (BBL +0.00%)
2012 EPS from BHP Billiton was 65% ahead of the 2006 figure. That's an average compound annual growth rate of 10.6% a year. In that time, the BHP dividend has been increased every year by an average of 19% per annum.
The problem is that earnings have gone up and down in that time as global commodity prices have bounced around. In fact, BHP's profit for 2013 is expected to be down 30.5% on last year's figure. The dividend is forecast to increase 4.5%.
The shares trade on a 2013 price-to-earnings ratio of 12.7, with an expected yield of 3.5%.
Standard Chartered (STAN +9.63%)
Of the U.K.-listed banks, Standard Chartered is the most exposed to Asian economies. In recent years, these economies have enjoyed superior growth.
EPS at Standard Chartered has increased in each of the last five years, apart from a 16.3% fall in 2009. Similarly, the dividend was cut 14.3% in 2008 but was increased in every other year.
On average, earnings have risen by 6.9% a year in the last five years at the bank. In that time, the dividend has increased by an average of 4.9% a year. Earnings growth of 9% is expected for 2013, with an 8.5% dividend increase. This puts the shares on a 2013 P/E of 11.2, with an expected yield of 3.5% -- not a high price for such a successful company.
Diageo (DGE +3.45%) (DEO +4.10%)
Diageo is the super-brewer behind famous drinks brands such as Guinness, Smirnoff, and Jose Cuervo.
In the last five years, earnings at this 47.1 billion pound titan have increased by an average of 14% per annum. This has produced average dividend growth of 5.9% a year. That gap between earnings and dividend growth at the company is expected to narrow with coming results.
Earnings at Diageo are forecast to rise, on average, by 10.9% for the next two years. Dividend growth is expected to pick up and run at an average of 9.5%. Diageo's success comes with a premium rating: The shares today trade at 18.3 times consensus EPS forecasts for 2013. That leaves little room for error and rules Diageo out for value investors.
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