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A U.S. Dividend Contender stock is a stock which has increased its dividend payout between 10 and 24 consecutive years. David Fish provides his list of U.S. Dividend Contenders 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. In this article, I provide a list of the top performing U.S. Dividend Contenders.

Methodology

The metric used to identify the top performing U.S. Dividend Contenders is the DRIP-adjusted compound annual growth rate (CAGR). That is, a stock’s compounded annual growth rate assuming full dividend reinvestment at market price on the day the dividend is received. The procedure for identifying the top U.S. Dividend Contenders is as follows.

For each stock in the list, the 10-year, 5-year, 3-year, and 1-year DRIP-adjusted CAGR is computed. Only stocks which feature returns greater than or equal to 15% for each of the 4 timeframes 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 return at the four specified time frames assuming dividend reinvestment at the date of dividend payment.

Results

Of the 144 U.S. Dividend Contender stocks at the time of this writing, 15 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, CAGR. This list of stocks is well-diversified across numerous sectors, and may provide a useful starting point for new DRIP investors.

name

yield

1-year

3-year

5-year

10-year

ALB

Albemarle Corp

1.01

57.3

15.4

25.2

21.1

CRR

Carbo Ceramics

0.55

100.5

39.3

27.0

20.3

OTCQB:CZFS

CCo Investment Services

2.79

45.2

24.3

15.3

15.7

OTCQX:CSVI

Computer Services

1.53

42.0

20.2

16.3

16.0

ENB

Enbridge

3.29

35.7

16.7

19.1

21.5

FDS

Factset Research Systems

1.04

53.6

19.6

20.3

15.3

KMP

Kinder Morgan Energy Partners LP

6.25

20.4

15.5

17.9

15.2

MMP

Magellan Midstream Partners LP

5.21

39.7

24.8

19.2

22.4

NVO

Novo Nordisk A/S

1.53

56.3

28.5

34.8

21.5

NUS

NU Skin Enterprises

1.53

34.3

31.9

19.6

19.0

PII

Polaris Industries Inc

1.82

68.5

33.8

21.8

18.9

ROST

Ross Stores Inc

1.15

34.5

28.4

24.3

21.2

SPH

Suburban Propane Partners LP

6.66

18.1

16.8

18.9

15.2

SXL

Sunoco Logistics Partners LP

5.59

32.6

27.0

23.2

21.0

TCLP

TC PipeLines LP

6.43

28.0

17.9

15.7

15.2

Source: The 15 Top Performing U.S. Dividend Contenders