The Top Performing U.S. Dividend Champions

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 |  Includes: ED, FDO, GWW, HCP, HRL, LANC, MCD, MGEE, MKC, NDSN, PPG, RAVN, RLI, SHW, SWK, VAL, VFC
by: JSG_DRIP

A U.S. Dividend Champion stock is a stock which has increased its dividend payout for at least 25 consecutive years. David Fish provides his list of U.S. Dividend Champions here. This list is a useful resource for stocks offering dividend reinvestment plans (i.e. DRIPs), and for those investors who automatically reinvest their dividends. Based on this list, I was interested in answering a basic question to which I could not find an answer: What are the top performing U.S. Dividend Champions?

Methodology

The metric used to identify the top performing U.S. Dividend Champions is the annualized DRIP-adjusted return. That is, a stock’s annualized return assuming full dividend reinvestment at market price of the the day the dividend is received. The procedure for identifying the top U.S. Dividend Champions is as follows. For each stock in the list, the 10-year, 5-year, 3-year, and 1-year annualized, DRIP-adjusted total return is computed. Only stocks which feature annualized returns greater than or equal to 10% are retained by the algorithm. A computer program was written which automatically pulls the split-adjusted historical stock price data from Google Finance and split-adjusted dividend data from Yahoo finance (with the help of "wget" for those linux users out there). These financial data were then read into a program which computes the total return at the four specified time frames assuming dividend reinvestment at +1 days after dividend payment.

Results

Of the 78 U.S. Dividend Champion stocks at the time of this writing, 17 are retained based on the filter defined above. The table below provides the stock’s 10-year, 5-year, 3-year, and 1-year DRIP-adjusted, annualized total return. This list of stocks is well-diversified across numerous sectors, and may provide a useful starting point for new DRIP investors.

symbol

name

10-yr return

5-yr return

3-yr return

1-yr return

ED

Consolidated Edison

29.9

16.8

11.2

13.3

FDO

FamitDollar Stores

38.3

57.9

27.8

13.0

HCP

HCP

23.0

10.2

18.1

31.5

HRL

Hormel Food Group

48.7

21.2

15.9

20.7

LANC

Lancaster Colony Corp

13.7

33.5

15.4

13.6

MKC

Mc Cormick & Co

32.4

14.6

12.3

20.3

MCD

McDonalds Corp

25.8

17.5

38.2

23.8

MGEE

MGE Energy

20.6

11.7

12.6

16.3

NDSN

Nordson Corp

52.8

15.6

22.5

35.9

PPG

PPG Industries

40.8

18.5

12.0

11.8

RAVN

Raven Industries

63.9

22.4

19.4

161.6

RLI

RLI Corp

26.4

13.9

11.4

29.0

SHW

The Sherwin Williams Co

14.0

21.1

19.3

39.8

SWK

Stanley Black and Decker

35.3

22.0

14.4

16.1

VAL

Valspar Corp

24.1

27.3

10.8

16.6

VFC

VF Corp

31.6

14.9

16.8

21.1

GWW

W W Grainger

49.4

24.5

25.4

31.3

Click to enlarge

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