This FTSE 100 inventory flies utterly below the radar, but boasts among the finest dividend data on your entire blue-chip index.

Its identify? DCC (LSE: DCC). Er, who? What? That will partially clarify its low profile. The model drive is weak on this one. In an index full of family names, retail traders might simply let this one slip by unnoticed.

I think that’s not the one motive. It isn’t instantly clear to the novice investor what DCC does, and due to this fact the place its prospects lie. Its web site merely tells us it “provides solutions the world needs across three transformative sectors: energy, healthcare and technology”. That doesn’t actually make clear it for me.

Why did I name DCC a celebrity?

That three-way enterprise cut up doesn’t assist both. Nor does share price efficiency. DCC is down 20% over the previous 12 months, and 35% over 5 years. Hardly the kind of chart that will get traders fired up.

But there’s one factor that ought to make traders sit up and swap on to DCC: it has probably the most dazzling dividend observe data on the FTSE 100.

It has elevated shareholder payouts yearly for the previous three a long time. I would even name it a dividend celebrity.

That document continued after posting full-year outcomes to 31 March on 13 Could, when it hiked its annual dividend by 5% to 206.4p. Right now, the inventory yields 4.4%. That’s not the largest yield on the index, but it surely’s properly above the FTSE 100 common of round 3.5%.

If the previous 31 years is any information, DCC will proceed to extend earnings for years to come back — though, as ever, there are not any ensures.

It’s good to traders

Now DCC plans to simplify its set up. It’s agreed to promote its healthcare division for simply over £1bn and can return £800m of that to shareholders, beginning with a £100m share buyback.

Clearly, it is a firm that places shareholders entrance and centre. At all times good to see.

Final 12 months it generated free money circulate of £588.8m, with a conversion fee of 84%, suggesting it’s good for its dividend guarantees.

Administration is shifting its focus to vitality, which CEO Donal Murphy labels its “largest and highest-returning business”. This will likely give traders a clearer thought of what they’re shopping for into.

One other quantity that pursuits me is the price-to-earnings ratio, which is simply 11.26. That appears like good worth.

One for the again burner

That is precisely the profile of a inventory I often like. But, I nonetheless can’t get labored up to purchase it. So I used to be to see what the analysts assume.

On 19 Could, RBC Capital Markets lower its price goal by 200p to five,200p. Though that’s nonetheless 12.5% greater than at present’s 4,616p…

But, RBC additionally warned of weak current buying and selling and macroeconomic dangers. It stated DCC has defensive qualities, however “isn’t a table thumper”. It added: “There’s a risk the market continues to struggle to value it, as DCC Energy is somewhat of a conglomerate.”

That struck a chord. It explains why I by no means fairly bought it. Given current efficiency, I don’t assume I’ve missed out both. Generally even a 30-year dividend document isn’t fairly sufficient.