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If you are a dividend growth investor who regularly reads Seeking Alpha you have likely heard of the Dividend Champion's List which is maintained by Dave Fish on his DRiP Investing Resource Center website. This site is an invaluable tool to investors looking to do some in-depth research on the historical performance of prospective investments.

The Dividend Champion's List contains a list of all the companies that have annually raised dividends for the last 25 consecutive years and there are currently 105 different companies that are members of this prestigious list.

Another dividend growth guru known by many on Seeking Alpha is chowder, who is such a guru that he actually has an investing rule named after him, "The Chowder Rule". The "Chowder Rule" basically says that he will not invest in a company as a dividend growth investor unless the dividend yield plus the dividend growth rate is greater than 12%. An example being a company that pays a dividend with a 3% yield would have to have a 5 year dividend growth rate of over 9% or a company with a 5% yield would require a dividend growth rate of over 7%.

With this article my goal was to find the companies that not only met the "Chowder Rule", but exceeded it. The criteria used in making this list are companies that have grown dividends by more than 5% in the last year and have a dividend yield plus 5 year dividend growth rate of over 14%.

Here are the group of fourteen companies that met the criteria.

Company NameTicker SymbolIndustry3/22/2013Annual DividendDividend YieldDividend Growth RateDividend Yield + 5 YR Div. Growth
Altria Group Inc.(NYSE:MO)Tobacco$ 33.91$ 1.765.2%7.7%14.3%11.4%19.5%
Becton Dickinson & Co.(NYSE:BDX)Medical Instruments$ 92.72$ 1.982.1%12.5%13.5%16.8%15.6%
Family Dollar Stores(NYSE:FDO)Retail-Discount$ 61.37$ 1.041.7%16.7%13.3%12.7%15.0%
Hormel Foods Corp.(NYSE:HRL)Food Processing$ 39.66$ 0.681.7%17.6%14.9%11.9%16.6%
Lowe's Companies(NYSE:LOW)Retail-Home Improv.$ 37.83$ 0.641.7%20.0%18.2%31.1%19.9%
McDonald's Corp.(NYSE:MCD)Restaurants$ 99.27$ 3.083.1%13.4%13.9%28.4%17.0%
Medtronic Inc.(NYSE:MDT)Medical Devices$ 45.99$ 1.042.3%80.0%16.5%15.5%18.8%
Parker-Hannifin Corp.(NYSE:PH)Industrial Equipment$ 92.08$ 1.721.9%13.3%16.2%12.9%18.1%
Raven Industries(NASDAQ:RAVN)Business Equipment$ 32.85$ 0.421.3%15.7%14.0%19.4%15.3%
T. Rowe Price Group(NASDAQ:TROW)Financial Services$ 74.12$ 1.522.1%9.7%14.9%15.6%17.0%
Target Corp.(NYSE:TGT)Retail-Discount$ 68.42$ 1.442.1%20.0%20.5%18.6%22.6%
W.W. Grainger Inc.(NYSE:GWW)Electronics-Wholesale$ 224.68$ 3.201.4%21.4%18.0%15.6%19.4%
Walgreen Company(WAG)Retail-Drugstores$ 46.49$ 1.102.4%25.0%23.7%21.2%26.1%
Wal-Mart Stores Inc.(NYSE:WMT)Retail-Discount$ 74.28$ 1.882.5%11.4%13.5%18.1%16.0%

What is surprising is the wide variety of sectors present on the list with tobacco, medical, retail, financial, industrial, electronics, business equipment and food processing all being represented.

Another interesting trait of most companies listed is the relatively low yields on the stocks. Of the fourteen stocks listed, only two of them have dividend yields of over 3% and 6 have yields of under 2%.

Of course, dividend payouts and high growth rates on dividends are nice, but the earnings for the company needs to back them up. Here are some relevant fundamentals that appear to show the dividends for the listed companies are maintainable.

Financial information and estimates are from Yahoo Finance.

Company NameTicker SymbolEPSDiv.PayoutTrailing 5YRForward 5YR
RatioEPS GrowthEPS Growth
Altria Group Inc.MO$ 2.06$ 1.7685%2.4%7.7%
Becton Dickinson & Co.BDX$ 7.48$ 1.9826%5.1%7.4%
Family Dollar StoresFDO$ 3.59$ 1.0429%18.5%13.4%
Hormel Foods Corp.HRL$ 1.86$ 0.6837%14.7%11.0%
Lowe's CompaniesLOW$ 1.69$ 0.6438%5.4%17.5%
McDonald's Corp.MCD$ 5.36$ 3.0857%12.4%9.3%
Medtronic Inc.MDT$ 3.38$ 1.0431%5.8%6.4%
Parker-Hannifin Corp.PH$ 6.76$ 1.7225%16.1%6.0%
Raven IndustriesRAVN$ 1.44$ 0.4229%15.3%10.0%
T. Rowe Price GroupTROW$ 3.36$ 1.5245%19.7%14.3%
Target Corp.TGT$ 4.52$ 1.4432%9.1%11.9%
W.W. Grainger Inc.GWW$ 9.52$ 3.2034%17.0%14.4%
Walgreen CompanyWAG$ 2.25$ 1.1049%4.9%12.9%
Wal-Mart Stores Inc.WMT$ 5.02$ 1.8837%9.6%9.0%

One mistake sometimes made by dividend investors is overlooking companies with lower yields and discounting them as good investments. This is understandable for the retiree who depends on the higher yields for dividend income, but for those still in the accumulation phase overlooking the lower yield, higher growth rate companies can cause you miss out on some tremendous returns over a long period.

The example below shows total returns from the six stocks with dividend yields currently under 2% and were calculated with dividends reinvested at buyupside.

Price, Dividend and Value Summary for Popular Portfolio - With Dividend Reinvestment
Price & Dividend ChartsInitial PriceLast PriceInitial Annual DividendCurrent Annual DividendCost BasisCurrent Portfolio ValueReturn
Portfolio Totals from Mar 2003 to Mar 2013$600.00$2,939.42389.90%

As you can see, the lack of dividend yield for these companies hasn't kept them from providing solid returns over the last decade. Every one of the six companies with lower than a 2% yield has at least doubled in value while the total return of the six stocks is 389% over the period.

In conclusion, I hope this list of the 14 Dividend "Champions of Champions" is helpful to those looking to build a dividend growth investment portfolio. Not only have all the companies listed increased dividends for the last 25+ years, but they also appear primed to continue to reward shareholders with increasing dividends into the future.

Disclosure: I am long MCD, RAVN, TGT, WAG, TGT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.