63 Dividend Challengers in the S&P 500

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Includes: ABC, ADI, AIQUF, AIZ, AMP, BBY, CMI, CNP, COST, CPB, CSX, CVS, D, DE, DRI, EIX, FDX, GIS, GPS, HAS, HRS, IFF, INTC, ITT, K, KHC, KR, LLL, LMT, MCHP, MSFT, NKE, NOC, NSC, NSM, OKE, OXY, PCG, PEG, PLL, PPL, QCOM, R, RAI, RHI, RSG, RTN, SO, SPLS, SRE, SWY, TIF, TMK, TRV, TXN, UNP, VZ, WEC, WM, WMB, XEL, XLNX, YUM
by: David Fish

In a separate article, I discussed the curious composition of the S&P Dividend Aristocrats, which are supposedly members of the S&P 500 that have recorded at least 25 consecutive years of higher dividends. In comparing the Dividend Champions list (found here) to the S&P 500 listing, I found that there were 52 Champions that were members of the S&P 500, but only 41 are included in S&P's Aristocrat list, and I discussed the variations. I went on to compare the listing of Dividend Challengers (5-9 years of paying higher dividends) and found that there are 63 Contenders in the S&P 500:

Constituent Name

Symbol

Years

Airgas Inc

(ARG)

8

Ameriprise Financial Inc

(NYSE:AMP)

6

AmerisourceBergen Corp

(NYSE:ABC)

6

Analog Devices Inc

(NYSE:ADI)

8

Assurant Inc

(NYSE:AIZ)

7

Best Buy Co Inc

(NYSE:BBY)

8

Campbell Soup Co

(NYSE:CPB)

7

Centerpoint Energy Inc

(NYSE:CNP)

5

Costco Wholesale Corp

(NASDAQ:COST)

7

CSX Corp

(NYSE:CSX)

6

Cummins Inc

(NYSE:CMI)

5

CVS Caremark Corp.

(NYSE:CVS)

7

Darden Restaurants Inc

(NYSE:DRI)

6

Deere & Co

(NYSE:DE)

7

Dominion Resources Inc

(NYSE:D)

7

Edison Intl

(NYSE:EIX)

8

FedEx Corp

(NYSE:FDX)

9

Gap Inc

(NYSE:GPS)

6

General Mills Inc

(NYSE:GIS)

7

Harris Corp

(NYSE:HRS)

9

Hasbro Inc

(NASDAQ:HAS)

7

Heinz, H.J. Co

(HNZ)

7

Intel Corp

(NASDAQ:INTC)

7

Intl Flavors & Fragrances

(NYSE:IFF)

8

ITT Corporation

(NYSE:ITT)

8

Kellogg Co

(NYSE:K)

6

Kroger Co

(NYSE:KR)

5

L-3 Communications

(NYSE:LLL)

7

Lockheed Martin

(NYSE:LMT)

8

Microchip Technology

(NASDAQ:MCHP)

9

Microsoft Corp

(NASDAQ:MSFT)

5

National Semiconductor

(NSM)

6

NIKE Inc B

(NYSE:NKE)

9

Norfolk Southern Corp

(NYSE:NSC)

9

Northrop Grumman Corp

(NYSE:NOC)

7

Occidental Petroleum

(NYSE:OXY)

8

ONEOK Inc

(NYSE:OKE)

8

Pall Corp

(NYSE:PLL)

6

PG&E Corporation

(NYSE:PCG)

6

PPL Corp

(NYSE:PPL)

8

Public Service Ent Grp

(NYSE:PEG)

7

QUALCOMM Inc

(NASDAQ:QCOM)

8

Raytheon Co

(NYSE:RTN)

6

Republic Services Inc

(NYSE:RSG)

8

Reynolds American Inc

(NYSE:RAI)

6

Robert Half Intl Inc

(NYSE:RHI)

7

Ryder System Inc

(NYSE:R)

6

Safeway Inc

(NYSE:SWY)

6

Sempra Energy

(NYSE:SRE)

5

Southern Co

(NYSE:SO)

9

Staples Inc

(NASDAQ:SPLS)

7

Texas Instruments Inc

(NYSE:TXN)

7

Tiffany & Co

(NYSE:TIF)

8

Torchmark Corp

(NYSE:TMK)

5

Travelers Cos Inc

(NYSE:TRV)

6

Union Pacific Corp

(NYSE:UNP)

5

Verizon Communications

(NYSE:VZ)

6

Waste Management Inc

(NYSE:WM)

7

Williams Cos Inc

(NYSE:WMB)

7

Wisconsin Energy Corp

(NYSE:WEC)

7

Xcel Energy Inc

(NYSE:XEL)

7

Xilinx Inc

(NASDAQ:XLNX)

6

Yum! Brands Inc

(NYSE:YUM)

7

Click to enlarge

Many of these companies are just getting started and will move on to become Dividend Contenders (10-24 years of higher dividends) and eventually Champions (25 or more years of higher dividends). That, along with their S&P 500 membership, certainly marks them as worthy investment candidates.

Disclosure: I am long COST, CSX, CVS, DE, EIX, INTC, LMT, MSFT, OKE, RTN, R, TRV, UNP, YUM.