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The following is a list of dividend champions with extreme options positioning.

All of the stocks mentioned below have a large number of open call option positions relative to put option positions, i.e. a low Put/Call ratio.

To create the list, we started with a universe of about 100 dividend champions identified by the DrIP Investing Resource Center--featuring companies that have increased dividends for more than 25 consecutive years. We then narrowed down the list by only focusing on those stocks with the lowest Put/Call ratios.

Some technical traders view the Put/Call ratio as a contrary indicator when it reaches extreme highs or lows. In other words, because the stocks mentioned below have a high number of open call option positions, contrarians would think most of the stocks mentioned below are set for a pullback. Do you agree?

We're not going to go into detailed analysis for each company. The goal here is to give income investors an interesting starting point for their own analysis.

Options data sourced from Schaeffer's, short float, dividend and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by dividend yield.

1. Vectren Corporation (NYSE:VVC): Diversified Utilities Industry. Market cap of $2.16B. Dividend yield at 5.21%. Call open interest at 802 contracts vs. put open interest at 128 contracts (Put/Call ratio at 0.16). Short float at 1.67%, which implies a short ratio of 2.57 days. The stock has gained 17.58% over the last year.

2. National Fuel Gas Co. (NYSE:NFG): Gas Utilities Industry. Market cap of $5.49B. Dividend yield at 2.07%. Call open interest at 11,094 contracts vs. put open interest at 1,893 contracts (Put/Call ratio at 0.17). Short float at 2.19%, which implies a short ratio of 3.36 days. The stock has gained 34.21% over the last year.

3. Leggett & Platt, Incorporated (NYSE:LEG): Home Furnishings & Fixtures Industry. Market cap of $3.31B. Dividend yield at 4.78%. Call open interest at 13,877 contracts vs. put open interest at 2,902 contracts (Put/Call ratio at 0.21). Short float at 2.64%, which implies a short ratio of 2.52 days. The stock has gained 16.55% over the last year.

4. Sonoco Products Co. (NYSE:SON): Paper & Paper Products Industry. Market cap of $3.65B. Dividend yield at 3.16%. Call open interest at 2,470 contracts vs. put open interest at 561 contracts (Put/Call ratio at 0.23). Short float at 1.19%, which implies a short ratio of 2.69 days. The stock has gained 24.71% over the last year.

5. Genuine Parts Company (NYSE:GPC): Auto Parts Wholesale Industry. Market cap of $7.96B. Dividend yield at 3.25%. Call open interest at 3,458 contracts vs. put open interest at 975 contracts (Put/Call ratio at 0.28). Short float at 3.52%, which implies a short ratio of 6.41 days. The stock has gained 37.58% over the last year.

6. Cincinnati Financial Corp. (NASDAQ:CINF): Property & Casualty Insurance Industry. Market cap of $5.17B. Dividend yield at 5.04%. Call open interest at 1,852 contracts vs. put open interest at 612 contracts (Put/Call ratio at 0.33). Short float at 10.11%, which implies a short ratio of 14.82 days. The stock has gained 24.89% over the last year.

7. McCormick & Co. Inc. (NYSE:MKC): Processed & Packaged Goods Industry. Market cap of $6.18B. Dividend yield at 2.41%. Call open interest at 305 contracts vs. put open interest at 104 contracts (Put/Call ratio at 0.34). Short float at 4.15%, which implies a short ratio of 8.39 days. The stock has gained 28.82% over the last year.

8. Telephone & Data Systems Inc. (NYSE:TDS): Wireless Communications Industry. Market cap of $3.75B. Dividend yield at 1.25%. Call open interest at 741 contracts vs. put open interest at 304 contracts (Put/Call ratio at 0.41). Short float at 2.32%, which implies a short ratio of 9.06 days. The stock has gained 10.82% over the last year.

9. California Water Service Group (NYSE:CWT): Water Utilities Industry. Market cap of $781.13M. Dividend yield at 3.17%. Call open interest at 257 contracts vs. put open interest at 122 contracts (Put/Call ratio at 0.47). Short float at 2.22%, which implies a short ratio of 4.93 days. The stock has gained 5.6% over the last year.

10. CLARCOR Inc. (NYSE:CLC): Auto Parts Industry. Market cap of $2.19B. Dividend yield at 0.97%. Call open interest at 598 contracts vs. put open interest at 303 contracts (Put/Call ratio at 0.51). Short float at 2.33%, which implies a short ratio of 5.93 days. The stock has gained 29.26% over the last year.

Source: Top 10 Dividend Champions With the Lowest Put/Call Ratios