3 More Top-Quality FTSE 100 Shares: ARM Holdings, Compass Group, and British Sky Broadcasting Group
LONDON -- I applied a quality filter to all companies on the market using a statistics package. Here are three more of the FTSE 100's top companies.
ARM shares have soared off the back of the smartphone and tablet boom. In the last five years, the shares are up almost ninefold.
In that time, ARM's dividend to shareholders has more than doubled. Earnings per share has increased nearly fourfold. That's particularly impressive given that sales in the last five years are up "only" 220%.
ARM's microchip designs continue to lead the competition. As a result, further huge growth is expected. Analysts forecast a 70% EPS rise in 2013, followed by "just" 27% of earnings growth in 2014. The dividend is expected to grow by around 25% per annum this year and next.
Compass Group is a supplier of catering and facilities management services to large employers and sites. The company has a fantastic dividend record: the shareholder payout has been increased in every year since 2000.
In the last five years, Compass has an unblemished record of sales, EPS, and dividend growth. Like most great companies, Compass has managed to grow earnings faster than sales. In recent years, the average annual sales increase is 10.5% a year, while EPS growth has averaged 22.1% a year. In that time, dividends per share are up 15.6% a year on average.
British Sky Broadcasting
British Sky Broadcasting is the domininant provider of three-play (TV, phone, Internet) to homes in the U.K.
With its last results, Sky announced a 10% increase in its subscription base. Average revenue per user increased to 568 pounds per year. Five years ago, this was 421 pounds per user. Sky's growth has been built from innovation and mastering the art of selling more things to more people at higher prices.
Analysts expect Sky to increase earnings and shareholder dividends this year and next. That puts the shares on a prospective P/E for 2014 of 14.4 times earnings, with an anticipated yield of 3.6%.
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The article 3 More Top-Quality FTSE 100 Shares: ARM Holdings, Compass Group, and British Sky Broadcasting Group originally appeared on Fool.com.David O'Hara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.