Worried about dividend cuts? 3 of the FTSE 100’s best dividend growers

There have been almost 150 dividend cuts across the FTSE 100 over the past decade. It’s not a problem that long-term investors in Coca-Cola HBC (LSE:CCH), BAE Systems, or Alliance Witan have had to endure.

At the Coca-Cola bottler, shareholder payouts have risen each year since 2014. BAE’s annual dividends have grown consistently since before the millennium.

But investment trust Alliance Witan blows both companies out of the water. Annual dividends have risen every year for more than 50 years (58, to be precise).

Dividends are never, ever guaranteed. Despite their strong records, even these FTSE 100 shares and investment trusts could disappoint passive income chasers if an economic crisis rears its head.

But given the increasingly uncertain outlook, I think each of these blue-chip dividend shares deserves serious consideration.

Top trust

Let’s kick off with Alliance Witan. Like fellow Footsie investment trust F&C Investment Trust — which has also consistently raised dividends for more than half a century — dividends are underpinned by its broad sector and regional diversification.

In total, the trust owns shares in 223 different global shares. Its holdings are far and wide, from US tech shares Nvidia to French energy producer Totalenergies and Indian bank HDFC. It also has a large dollop of defensive shares (19% of the whole portfolio) to provide added dividend stability.

For 2025, Alliance Witan’s dividend yield is 2.2%, below the index average of 3.2%. But in my view, this is more than offset by the potential for more explosive payout growth. Cash rewards have soared 13.9% on average over the last five years.

Be mindful that a 100% weighting towards equities leaves it exposed to stock market volatility.

Defence giant

BAE Systems’ dividends have been safeguarded down the years by the long-term stability of defence spending. Throughout history, ‘defending the realm’ has been the number-one priority of any country.

The FTSE 100 company has leveraged this perfectly with its broad portfolio of market-leading technologies. It’s Europe’s biggest defence contractor, whose products and services are essential to major military powers including the US and UK.

Future revenues could come under threat if public finances in the West continue to deteriorate, putting pressure on defence budgets. But as the geopolitical landscape becomes more dangerous, I’m confident arms spending should keep rising to new records, pushing BAE’s profits and dividends higher.

Annual payouts have grown by 8% on average since 2019. For 2025, the company’s dividend yield is 2%.

Coke bottler

Despite the threat of fierce competition, Coca-Cola HBC has still grown dividends rapidly over time. It’s a record I expect to continue, which is why I own the soft drinks producer in my own UK shares portfolio.

The Coca-Cola, Sprite, and Fanta bottler operates in the highly defensive consumer staples sector. But as that small selection of names shows, this isn’t the only supportive factor behind its steady dividend growth. The firm’s brands remain popular across the economic cycle, allowing it to raise prices to grow earnings (and shareholder payouts) regardless of economic conditions.

The bottler has 750 loyal customers across Europe, Africa, and Asia. This includes heavy exposure to emerging and developing markets, where robust sales growth is helping light a fire under dividends.

Cash payouts have risen 10.7% on average during the last five years. Coca-Cola HBC’s dividend yield for 2025 is 3%.

The post Worried about dividend cuts? 3 of the FTSE 100’s best dividend growers appeared first on The Motley Fool UK.

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