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If you feel more confident about a dividend yield when you know that the company has maintained or increased their dividend for many years, you may be interested in this list.

We ran a screen on “dividend champions,” companies that have consistently increased their dividend over the past 25 years. We screened these companies for those that have seen significant decreases in their put/call ratio over the last ten trading days (a bullish change in sentiment).

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month.

(Click chart for more detail)


Do you think these stocks will continue to increase their dividends? Use this list as a starting-off point for your own analysis.

List sorted by decrease in put/call ratio.

1. The Sherwin-Williams Company (SHW): General Building Materials Industry. Market cap of $7.89B. Dividend yield at 1.97%, payout ratio at 31.62%. Put/call ratio has decreased 29.57% over the last ten trading days (from 1.86 to 1.31). The stock is currently stuck in a downtrend, trading 7.62% below its SMA20, 9.84% below its SMA50, and 8.39% below its SMA200. The stock has performed poorly over the last month, losing 13.02%.

2. Target Corp. (TGT): Discount, Variety Stores Industry. Market cap of $32.95B. Dividend yield at 2.51%, payout ratio at 24.0%. Put/call ratio has decreased 13.25% over the last ten trading days (from 0.83 to 0.72). It's been a rough couple of days for the stock, losing 5.2% over the last week.

3. Exxon Mobil Corporation (XOM): Major Integrated Oil & Gas Industry. Market cap of $363.74B. Dividend yield at 2.55%, payout ratio at 23.58%. Put/call ratio has decreased 9.82% over the last ten trading days (from 1.12 to 1.01). It's been a rough couple of days for the stock, losing 9.35% over the last week.

4. Lowe's Companies Inc. (LOW): Home Improvement Stores Industry. Market cap of $26.33B. Dividend yield at 2.77%, payout ratio at 30.72%. Put/call ratio has decreased 7.08% over the last ten trading days (from 1.13 to 1.05). The stock is currently stuck in a downtrend, trading 9.57% below its SMA20, 11.62% below its SMA50, and 16.72% below its SMA200. It's been a rough couple of days for the stock, losing 7.21% over the last week.

5. Donaldson Company, Inc. (DCI): Pollution & Treatment Controls Industry. Market cap of $3.89B. Dividend yield at 1.18%, payout ratio at 18.36%. Put/call ratio has decreased 5.36% over the last ten trading days (from 0.56 to 0.53). The stock is currently stuck in a downtrend, trading 10.96% below its SMA20, 10.74% below its SMA50, and 9.89% below its SMA200. It's been a rough couple of days for the stock, losing 8.41% over the last week.

6. Carlisle Companies Inc. (CSL): Rubber & Plastics Industry. Market cap of $2.25B. Dividend yield at 1.86%, payout ratio at 26.92%. Put/call ratio has decreased 4.88% over the last ten trading days (from 0.41 to 0.39). The stock is currently stuck in a downtrend, trading 18.95% below its SMA20, 20.55% below its SMA50, and 13.08% below its SMA200. It's been a rough couple of days for the stock, losing 16.48% over the last week.

*Dividend champions sourced from DRiP Investing, options data sourced from Schaeffer’s, 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.

Source: 6 Dividend Champions With Bullish Options Sentiment