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When it comes to the world of dividend stocks the investment community just thinks one word…boring. Well that's simply not the case relative to the dividend stocks we've come across given their recent price action. This companies just keep on slipping despite impressive earnings growth. Still, in our view there is no reason to frown on the situation because while the companies keep getting cheaper by the day their earnings keep growing and ultimately that could spell great opportunity for the patient investor.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.

We first looked for dividend stocks that have posted strong earnings growth for shareholders over an extended period of time (1-year fiscal EPS growth rate>10%). From this narrowed list of candidates we then looked for companies that have underperformed the S&P 500 (NYSEARCA:SPY) over the last month. We did not screen out any sectors or market caps.

The list is ranked from highest to lowest by the 1-year fiscal EPS growth rate:

1. Dr. Reddy Laboratories, Ltd. (RDY)

Sector

Healthcare

Industry

Drug Manufacturers - Specialty & Generic

Market Cap

$5,618M

Beta

1.01

The company produces pharmaceutical ingredients, intermediates, and more. The company has a dividend yield of 0.71% & 1-year fiscal EPS growth rate of 930.95%. RDY has fallen -7.04% over the last 3 months. The short interest was N/A as of 10/14/2011.

2. Littelfuse Inc. (LFUS)

Sector

Industrials

Industry

Diversified Industrials

Market Cap

$1,126M

Beta

1.92

The company supplies circuit protection products for the electronics space. The company has a dividend yield of 1.29% & 1-year fiscal EPS growth rate of 718.60%. LFUS has fallen -3.82% over the last 3 months. The short interest was 7.90% as of 10/14/2011.

3. International Speedway Corpora. (ISCA)

Sector

Consumer Cyclical

Industry

Leisure

Market Cap

$1,130M

Beta

1.22

The company promotes and operates motor sports entertainment events in the US. The company has a dividend yield of 0.75% & 1-year fiscal EPS growth rate of 707.14%. ISCA has fallen -14.69% over the last 3 months. The short interest was N/A as of 10/14/2011.

4. The Dow Chemical Co. (DOW)

Sector

Basic Materials

Industry

Chemicals

Market Cap

$32,932M

Beta

2.68

The company offers chemical, plastic and agricultural products all over the world. The company has a dividend yield of 2.87% & 1-year fiscal EPS growth rate of 681.82%. DOW has fallen -19.33% over the last 3 months. The short interest was 2.40% as of 10/14/2011.

5. Wynn Resorts Ltd. (WYNN)

Sector

Consumer Cyclical

Industry

Resorts & Casinos

Market Cap

$16,593M

Beta

2.66

The company operates luxury casino resorts in Las Vegas, and Macau. The company has a dividend yield of 1.13% & 1-year fiscal EPS growth rate of 658.82%. WYNN has fallen -13.26% over the last 3 months. The short interest was 11.20% as of 10/14/2011.

6. Capital One Financial Corp. (COF)

Sector

Financial Services

Industry

Credit Services

Market Cap

$20,975M

Beta

2.05

The company offers a variety of financial services & products through its subsidiaries. The company has a dividend yield of 0.44% & 1-year fiscal EPS growth rate of 581.63%. COF has fallen -4.37% over the last 3 months. The short interest was N/A as of 10/14/2011.

7. Bunge Ltd. (BG)

Sector

Consumer Defensive

Industry

Farm Products

Market Cap

$9,107M

Beta

1.05

The company is a global agribusiness and food company. The company has a dividend yield of 1.52% & 1-year fiscal EPS growth rate of 578.38%. BG has fallen -9.87% over the last 3 months. The short interest was 2.10% as of 10/14/2011.

8. Tim Holding Company. (TSU)

Sector

Commun Services

Industry

Telecom Services

Market Cap

$6,447M

Beta

1.16

The company offers mobile telecomm. services in Brazil. The company has a dividend yield of 4.75% & 1-year fiscal EPS growth rate of 557.50%. TSU has fallen -47.96% over the last 3 months. The short interest was N/A as of 10/14/2011.

9. HollyFrontier Corp. (HFC)

Sector

Energy

Industry

Oil & Gas Refining & Marketing

Market Cap

$6,447M

Beta

0.75

The company is an independent petroleum refiner. The company has a dividend yield of 1.02% & 1-year fiscal EPS growth rate of 546.67%. HFC has fallen -17.02% over the last 3 months. The short interest was 6.90% as of 10/14/2011.

10. Alexander & Baldwin, Inc. (ALEX)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$1,731M

Beta

1.62

The company operates in transportation, real estate and agribusiness. The company has a dividend yield of 3.04% & 1-year fiscal EPS growth rate of 545.45%. It has fallen -13.24% over the last 3 months. The short interest was N/A as of 10/14/2011.

We hope this list helps investors as they do their own due diligence and research on dividend stocks.

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

Source: 10 Dividend Stocks That Keep Slipping Lower Despite Impressive Earnings Growth