FTSE-listed stocks known for their excellent dividend growth

BAE Systems (BA.)

BAE Systems is a global defence, aerospace, and security company. Given the current geopolitical climate, the company is experiencing a significant increase in demand for its products and services, leading to a strong order backlog and excellent earnings visibility.

• Dividend Track Record: BAE has a long history of progressive dividend payments. For over two decades, it has consistently increased its dividend, demonstrating a reliable commitment to shareholder returns through various economic cycles.
• Why Growth Can Continue: The company's order book provides a clear, long-term revenue stream. As global defence spending continues to rise, BAE is well-positioned for sustained earnings growth, which should comfortably fund future dividend increases.

Diageo (DGE)

Diageo is a global leader in the alcoholic beverages industry, owning an impressive portfolio of iconic brands like Guinness, Johnnie Walker, Smirnoff, and Tanqueray. Its global diversification and premium brand power provide significant pricing power and resilience.

• Dividend Track Record: Diageo is a classic example of a UK "dividend aristocrat," having increased its dividend every year for over 25 years. This remarkable consistency makes it a cornerstone for many income-focused portfolios.
• Why Growth Can Continue: The company's premium brands have a loyal customer base, allowing it to pass on cost increases and protect its margins. Its exposure to emerging markets offers a long-term runway for growth, which is expected to fuel continued dividend hikes.

RELX (REL)

RELX is a global provider of information-based analytics and decision tools for professional and business customers. The company has successfully transitioned from print to digital, with its services now deeply embedded in the workflows of its clients in the legal, medical, and business sectors.

• Dividend Track Record: RELX has an excellent record of dividend growth, consistently increasing its payout by a mid-to-high single-digit percentage annually.
• Why Growth Can Continue: The vast majority of its revenue is subscription-based, creating a predictable and recurring income stream. As the demand for data analytics and risk management tools grows, RELX's essential services and strong market position should support continued earnings and dividend growth.

Spirax-Sarco Engineering (SPX)

Spirax-Sarco is a world-leading engineering group focused on the control and efficient use of steam and industrial fluids. Its products are critical for a wide range of industrial processes, from food production to pharmaceuticals.

• Dividend Track Record: This is a FTSE champion of dividend growth, having increased its dividend for over 50 consecutive years. This incredible track record places it in a very elite group of companies globally.
• Why Growth Can Continue: Its products are essential for its customers' efficiency and sustainability goals. The business is highly profitable with strong cash flow generation, and its global presence and critical expertise create high barriers to entry, allowing for sustained investment and shareholder returns.

Halma (HLMA)

Halma is a group of technology companies focused on creating a safer, cleaner, and healthier future. It operates in niche markets related to safety, environment, and health, acquiring and growing small to medium-sized tech businesses.

• Dividend Track Record: Halma holds one of the most impressive dividend growth records on the London Stock Exchange, with over 40 consecutive years of increasing its dividend by 5% or more.
• Why Growth Can Continue: The company's focus on essential, non-discretionary safety and environmental markets provides defensive growth. Its successful acquisition strategy continues to add new revenue streams, while its strong financial discipline ensures that this growth translates into rising cash flow and dividends for shareholders.