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If you’re searching for sustainable dividends, this list might offer some helpful ideas.

Here we list 12 dividend champions, i.e. companies that have consistently raised their dividend over the past 25 years. These companies have also had higher-than-industry dividend growth over the past 5 years. (Note: all companies have dividend yields above 3%).

Although high dividend yields are sometimes considered unsustainable, a fast-growing dividend also indicates increased profitability and management confidence.


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Do you think these stocks offer sustainable dividends? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield:

1. Middlesex Water Co. (NASDAQ:MSEX): Water Utilities Industry. Market cap of $282.80M. Dividend yield at 4.02%. 5-year dividend growth rate at 1.44% vs. industry average at 0.89%. The stock has gained 13.73% over the last year.



2. Northwest Natural Gas Company (NYSE:NWN): Gas Utilities Industry. Market cap of $1.19B. Dividend yield at 3.88%. 5-year dividend growth rate at 4.94% vs. industry average at 4.58%. The stock is a short squeeze candidate, with a short float at 6.65% (equivalent to 12.43 days of average volume). The stock has gained 7.82% over the last year.



3. Connecticut Water Service Inc. (NASDAQ:CTWS): Water Utilities Industry. Market cap of $214.80M. Dividend yield at 3.77%. 5-year dividend growth rate at 1.72% vs. industry average at 0.89%. The stock has gained 22.35% over the last year.

4. Abbott Laboratories (NYSE:ABT): Drug Manufacturers Industry. Market cap of $82.33B. Dividend yield at 3.62%. 5-year dividend growth rate at 9.86% vs. industry average at 9.48%. The stock has gained 16.44% over the last year.

5. Questar Corporation (NYSE:STR): Independent Oil & Gas Industry. Market cap of $3.04B. Dividend yield at 3.56%. 5-year dividend growth rate at 3.95% vs. industry average at 2.14%. The stock has gained 26.38% over the last year.

6. Diebold, Incorporated (NYSE:DBD):
Business Equipment Industry. Market cap of $2.09B. Dividend yield at 3.5%. 5-year dividend growth rate at 5.66% vs. industry average at 1.12%. The stock appears to have good liquidity to back up its dividend-- current ratio at 2.18 and quick ratio at 1.58. The stock is a short squeeze candidate, with a short float at 5.5% (equivalent to 8.29 days of average volume). The stock has performed poorly over the last month, losing 12.75%.

7. Nucor Corporation (NYSE:NUE): Steel & Iron Industry. Market cap of $13.20B. Dividend yield at 3.47%. 5-year dividend growth rate at 9.29% vs. industry average at 6.05%. The stock has gained 1.88% over the last year.

8. Clorox Corporation (NYSE:CLX): Housewares & Accessories Industry. Market cap of $9.29B. Dividend yield at 3.44%. 5-year dividend growth rate at 13.05% vs. industry average at 1.88%. The stock has gained 14.64% over the last year.

9. Johnson & Johnson (NYSE:JNJ): Drug Manufacturers Industry. Market cap of $181.71B. Dividend yield at 3.44%. 5-year dividend growth rate at 10.6% vs. industry average at 9.48%.The stock appears to have good liquidity to back up its dividend-- current ratio at 2.05 and quick ratio at 1.79. The stock has gained 15.19% over the last year.

10. American States Water Company (NYSE:AWR):
Water Utilities Industry. Market cap of $624.36M. Dividend yield at 3.35%. 5-year dividend growth rate at 2.93% vs. industry average at 0.89%. The stock has gained 1.83% over the last year.

11. Sysco Corp. (NYSE:SYY): Food Wholesale Industry. Market cap of $18.63B. Dividend yield at 3.26%. 5-year dividend growth rate at 11.29% vs. industry average at 9.29%. The stock has gained 13.79% over the last year.

12. Procter & Gamble Co. (NYSE:PG): Personal Products Industry. Market cap of $185.29B. Dividend yield at 3.16%. 5-year dividend growth rate at 11.81% vs. industry average at 1.88%. The stock has gained 13.3% over the last year.

*Dividend growth rates sourced from Reuters, all other data sourced from Finviz.


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