20 Dividend Champions With Great Management Teams

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 |  Includes: ABT, AWR, BMS, CL, CTWS, CWT, FRT, GPC, JNJ, KMB, KO, MCD, MGEE, MSA, MSEX, PEP, PG, SJW, SON, SYY
by: Kapitall

If you're an income investor looking for companies backed by a solid management teams, the list below might offer a useful starting point.

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 that have outperformed their competitors over the last five years, when comparing the Return on Assets (ROA), Return on Invested Capital (ROI) and Return on Equity (ROE) ratios.

Considering that these companies have a track record of raising dividends and outperforming competitors, do you think these good trends will continue? Full details below.

Management data and industry comps sourced from Reuters, short float 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. Middlesex Water Co. (NASDAQ:MSEX): Water Utilities Industry. Market cap of $276.63M. Dividend yield at 4.10%. 5-year average ROA at 2.75% vs. industry average at 1.48%. 5-year average ROI at 3.03% vs. industry average at 1.8%. 5-year average ROE at 8.32% vs. industry average at 4.57%. Short float at 2.44%, which implies a short ratio of 10.64 days. The stock has gained 9.07% over the last year.

2. Kimberly-Clark Corporation (NYSE:KMB): Personal Products Industry. Market cap of $26.32B. Dividend yield at 4.09%. 5-year average ROA at 9.3% vs. industry average at 1.8%. 5-year average ROI at 13.23% vs. industry average at 2.57%. 5-year average ROE at 31.69% vs. industry average at 4.94%. Short float at 1.37%, which implies a short ratio of 2.06 days. The stock has gained 10.21% over the last year.

3. Abbott Laboratories (NYSE:ABT): Drug Manufacturer. Market cap of $74.14B. Dividend yield at 3.67%. 5-year average ROA at 10.15% vs. industry average at 9.9%. 5-year average ROI at 13.83% vs. industry average at 12.83%. 5-year average ROE at 23.18% vs. industry average at 16.31%. Short float at 0.59%, which implies a short ratio of 1.05 days. The stock has lost -10.59% over the last year.

4. Connecticut Water Service Inc. (NASDAQ:CTWS): Water Utilities Industry. Market cap of $220.06M. Dividend yield at 3.66%. 5-year average ROA at 2.46% vs. industry average at 1.48%. 5-year average ROI at 2.59% vs. industry average at 1.8%. 5-year average ROE at 8.56% vs. industry average at 4.57%. Short float at 2.79%, which implies a short ratio of 15.59 days. The stock has gained 14.8% over the last year.

5. MGE Energy Inc. (NASDAQ:MGEE): Diversified Utilities Industry. Market cap of $978.94M. Dividend yield at 3.54%. 5-year average ROA at 4.26% vs. industry average at 3.81%. 5-year average ROI at 5.06% vs. industry average at 4.39%. 5-year average ROE at 11.1% vs. industry average at 8.02%. Short float at 2.01%, which implies a short ratio of 8.69 days. The stock has gained 29.54% over the last year.

6. Federal Realty Investment Trust (NYSE:FRT): Retail REIT. Market cap of $4.75B. Dividend yield at 3.47%. 5-year average ROA at 3.61% vs. industry average at 2.37%. 5-year average ROI at 5.22% vs. industry average at 2.78%. 5-year average ROE at 9.89% vs. industry average at 4.65%. Short float at 7.01%, which implies a short ratio of 8.88 days. The stock has gained 19.27% over the last year.

7. Sysco Corp. (NYSE:SYY): Food Wholesale Industry. Market cap of $17.53B. Dividend yield at 3.47%. 5-year average ROA at 10.8% vs. industry average at 2.08%. 5-year average ROI at 16.43% vs. industry average at 3.63%. 5-year average ROE at 31.48% vs. industry average at 5.16%. Short float at 2.56%, which implies a short ratio of 4.34 days. The stock has gained 11.58% over the last year.

8. Johnson & Johnson (NYSE:JNJ): Drug Manufacturer. Market cap of $172.63B. Dividend yield at 3.44%. 5-year average ROA at 15.41% vs. industry average at 9.9%. 5-year average ROI at 20.4% vs. industry average at 12.83%. 5-year average ROE at 27.75% vs. industry average at 16.31%. Short float at 0.97%, which implies a short ratio of 2.63 days. The stock has gained 1.73% over the last year.

9. Mine Safety Appliances Co. (NYSE:MSA): Medical Appliances & Equipment Industry. Market cap of $1.11B. Dividend yield at 3.27%. 5-year average ROA at 7.57% vs. industry average at 3.01%. 5-year average ROI at 9.4% vs. industry average at 4.95%. 5-year average ROE at 15.83% vs. industry average at 6.69%. Short float at 3.77%, which implies a short ratio of 12.57 days. The stock has gained 19.89% over the last year.

10. Genuine Parts Company (NYSE:GPC): Auto Parts Wholesale Industry. Market cap of $7.96B. Dividend yield at 3.25%. 5-year average ROA at 9.74% vs. industry average at 5.32%. 5-year average ROI at 13.72% vs. industry average at 8.01%. 5-year average ROE at 17.83% vs. industry average at 10.1%. Short float at 3.52%, which implies a short ratio of 6.41 days. The stock has gained 37.58% over the last year.

11. McDonald's Corp. (NYSE:MCD): Restaurants Industry. Market cap of $79.41B. Dividend yield at 3.25%. 5-year average ROA at 11.41% vs. industry average at 3.79%. 5-year average ROI at 12.95% vs. industry average at 5.06%. 5-year average ROE at 22.68% vs. industry average at 9.21%. Short float at 0.58%, which implies a short ratio of 0.87 days. The stock has gained 22.81% over the last year.

12. California Water Service Group (NYSE:CWT): Water Utilities Industry. Market cap of $781.13M. Dividend yield at 3.17%. 5-year average ROA at 2.74% vs. industry average at 1.48%. 5-year average ROI at 2.94% vs. industry average at 1.8%. 5-year average ROE at 9.01% vs. industry average at 4.57%. Short float at 2.22%, which implies a short ratio of 4.93 days. The stock has gained 5.6% over the last year.

13. Sonoco Products Co. (NYSE:SON): Paper & Paper Products Industry. Market cap of $3.65B. Dividend yield at 3.16%. 5-year average ROA at 5.36% vs. industry average at 3.76%. 5-year average ROI at 6.92% vs. industry average at 4.72%. 5-year average ROE at 13.98% vs. industry average at 6.73%. Short float at 1.19%, which implies a short ratio of 2.69 days. The stock has gained 24.71% over the last year.

14. American States Water Company (NYSE:AWR): Water Utilities Industry. Market cap of $642.76M. Dividend yield at 3.01%. 5-year average ROA at 2.7% vs. industry average at 1.48%. 5-year average ROI at 3% vs. industry average at 1.8%. 5-year average ROE at 8.74% vs. industry average at 4.57%. Short float at 2.27%, which implies a short ratio of 3.22 days. The stock has gained 5.57% over the last year.

15. Procter & Gamble Co. (NYSE:PG): Personal Products Industry. Market cap of $186.7B. Dividend yield at 2.93%. 5-year average ROA at 7.92% vs. industry average at 0.89%. 5-year average ROI at 10.06% vs. industry average at 1.18%. 5-year average ROE at 17.07% vs. industry average at 1.78%. Short float at 0.95%, which implies a short ratio of 2.78 days. The stock has gained 13.37% over the last year.

16. Pepsico, Inc. (NYSE:PEP): Processed & Packaged Goods Industry. Market cap of $104.44B. Dividend yield at 2.91%. 5-year average ROA at 15.97% vs. industry average at 6.74%. 5-year average ROI at 21.25% vs. industry average at 9.42%. 5-year average ROE at 35.43% vs. industry average at 12.36%. Short float at 0.43%, which implies a short ratio of 1.1 days. The stock has gained 11.39% over the last year.

17. Bemis Company, Inc. (NYSE:BMS): Packaging & Containers Industry. Market cap of $3.49B. Dividend yield at 2.85%. 5-year average ROA at 5.58% vs. industry average at 2.59%. 5-year average ROI at 6.72% vs. industry average at 4.39%. 5-year average ROE at 11.23% vs. industry average at 6.32%. Short float at 2.61%, which implies a short ratio of 3.5 days. The stock has gained 15.21% over the last year.

18. The Coca-Cola Company (NYSE:KO): Beverages Industry. Market cap of $146.13B. Dividend yield at 2.80%. 5-year average ROA at 15.7% vs. industry average at 6.74%. 5-year average ROI at 22.97% vs. industry average at 9.42%. 5-year average ROE at 29.8% vs. industry average at 12.36%. Short float at 0.96%, which implies a short ratio of 2.32 days. The stock has gained 19.39% over the last year.

19. SJW Corp. (NYSE:SJW): Water Utilities Industry. Market cap of $464.24M. Dividend yield at 2.72%. 5-year average ROA at 3.21% vs. industry average at 1.48%. 5-year average ROI at 3.35% vs. industry average at 1.8%. 5-year average ROE at 10.26% vs. industry average at 4.57%. Short float at 3.23%, which implies a short ratio of 11.26 days. The stock has gained 15.39% over the last year.

20. Colgate-Palmolive Co. (NYSE:CL): Personal Products Industry. Market cap of $38.13B. Dividend yield at 2.68%. 5-year average ROA at 18.77% vs. industry average at 13.28%. 5-year average ROI at 28.37% vs. industry average at 24.2%. 5-year average ROE at 105.86% vs. industry average at 31.6%. Short float at 1.45%, which implies a short ratio of 2.63 days. The stock has gained 1.87% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.