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On Monday I published "18 Dividend Champions with Yields 50% Higher than 10-Year Treasuries." Dividend Champions are stocks that have increased their dividends for 25 or more consecutive years. There are 103 Champions at the moment, and 18 of the 103 (or 17%) qualified with yields of 3.375% or more. Ten-year Treasuries currently yield just 2.25%.

Today let's look at the next group of dividend-raising stocks, the Dividend Contenders. These are stocks with dividend increase streaks of 10 to 24 years. Of the 161 Dividend Challengers, 55 made the cut (34%), again meaning that their current yields are 3.375% or more.

As with the earlier article, in the table below I:

  • Include the 5-year dividend growth rate (DGR).
  • State the number of consecutive years each stock has increased its dividend payout.
  • Omit stocks whose most recent declared increase was over 12 months ago.
  • Call out stocks whose most recent increase was significantly lower than its 5-year DGR. (I used my judgment on REITs and MLPs, many of which raise their dividends multiple times per year.)

As to the last category-stocks whose most recent increase is significantly lower than their 5-year DGR-there are 31 of these, or 56% of the total that made the cut. (Among the Champions, the percentage was 63%.) As in the first article, I don't know if these rather large percentages suggest a long-term trend of shrinking dividend increases, are a hangover from the Great Recession and financial crisis, have some other cause, or are just random.

As always, thanks to David Fish for creating and maintaining the Dividend Champions document. It is the best source for dividend growth investors.

Dividend Contenders with Yields 50% Higher than 10-Year Treasuries

Stock

Ticker

Yield %

5-Year DGR

%

Years of Dividend Growth

Notes

AGL Resources

GAS

4.61

4.0

10

Most recent increase = 2.2%

Alliance Resource Partners

ARLP

5.52

13.6

10

MLP

Arrow Financial

AROW

4.16

3.8

18

Artesian Resources

ATRNA

4.04

4.4

14

Most recent increase = 1.5%

Atmos Energy

ATO

4.49

1.5

24

Auburn National Bancorp

AUBN

3.82

4.6

11

Most recent increase = 2.5%

Avista

AVA

4.70

14.1

10

Most recent increase = 5.5%

BHP Billiton plc

BBL

3.39

22.9

10

ADR (UK)

Most recent increase = 8.9%

Buckeye Partners

BPL

6.94

5.9

17

MLP

Community Bank System

CBU

3.81

5.4

19

ConocoPhillips

COP

3.45

12.9

11

Enterprise Products Partners

EPD

4.78

6.0

15

MLP

First Keystone

OTCQB:FKYS

4.60

2.7

11

First of Long Island

FLIC

3.55

14.6

16

Most recent increase = 4.6%

Juniata Valley Financial

OTCQB:JUVF

4.76

5.4

21

Kinder Morgan Energy Partners

KMP

5.21

7.2

15

MLP

Most recent increase run-rate = 3.5%

Landmark Bancorp

LARK

4.11

6.7

11

Most recent increase = 5.0%

Magellan Midstream Partners

MMP

4.46

6.4

12

MLP

Meredith

MDP

4.65

12.4

18

Microchip Technology

MCHP

3.87

9.3

11

Most recent increase = 0.3%

National Bankshares

NKSH

3.85

6.5

12

National Health Investors

NHI

5.52

5.3

10

REIT

National Retail Properties

NNN

5.78

3.0

22

REIT

Most recent increase = 1.3%

NextEra Energy

NEE

4.03

8.0

18

Nippon Telegraph & Telephone

NTT

3.49

23.4

10

ADR (Japan)

Most recent increase = 18.9%

Northeast Indiana Bancorp

OTCQB:NIDB

5.14

2.0

17

Norwood Financial

NWFL

4.62

7.2

14

Most recent increase = 3.5%

Novartis

NVS

4.51

21.4

11

ADR (Switzerland)

Most recent increase = 4.6%

NSTAR

NST

3.84

7.0

14

NTT DoCoMo

DCM

4.02

16.7

10

ADR (Japan)

NuStar Energy

NS

7.20

4.2

11

MLP

Omega Healthcare Investors

OHI

8.05

10.1

10

REIT

Most recent increase = 2.5%

PartnerRe

PRE

3.91

8.0

19

Most recent increase = 3.3%

People's United Financial

PBCT

5.00

6.3

19

Most recent increase = 3.3%

Plains All America Pipeline

PAA

4.96

6.3

12

MLP

PPL

PPL

5.04

4.9

11

Most recent increase = 2.9%

Realty Income

O

4.73

2.7

18

REIT

SCANA

SCG

4.40

3.2

12

Most recent increase = 2.1%

Shaw Communications

SJR

4.73

29.1

10

ADR (Canada)

Most recent increase = 4.8%

Southern

SO

4.28

4.1

10

Southside Bancshares

SBSI

3.38

15.5

17

Most recent increase = 5.9%

Sunoco Logistics

SXL

4.30

9.8

11

MLP

TC Pipelines

TCP

6.63

5.5

12

MLP

Most recent increase = 2.7%

Teche Holding

TSH

3.90

4.8

11

Most recent increase = 1.4%

Thomson Reuters

TRI

4.42

7.1

19

ADR (Canada)

Most recent increase = 3.2%

UGI

UGI

3.68

8.1

24

Most recent increase = 4.0%

Unilever NV

UN

3.76

8.7

12

ADR (Netherlands)

Most recent increase = 0.9%

Unilever plc

UL

3.85

7.7

12

ADR (UK)

Most recent increase = 0.9%

Unisource Energy

UNS

4.68

14.9

13

Most recent increase = 2.4%

Universal Health Realty

UHT

6.46

1.4

23

REIT

Most recent increase = 0.8%

Urstadt Biddle Properties

UBA

5.21

1.7

18

REIT

Vector Group

VGR

8.82

5.0

14

WP Carey

WPC

4.86

3.3

15

Most recent increase = 0.5%

Watsco

WSO

3.47

18.6

11

Most recent increase = 8.8%

Westwood Holdings

WHG

3.82

26.9

11

Most recent increase = 5.7%

[Source: Dividend Champions, updated 2/29/2012.]

The usual fine print applies. These are not recommendations, and appearance on this list does not mean that these are necessarily good stocks for dividend investors. Dividend stocks-like any investments-should be matched to your own situation and goals. Being stocks, they are subject to systematic market risk. The bottom line is to do your own due diligence before investing in anything.

Source: 55 Dividend Contenders With Yields 50% Higher Than 10-Year Treasuries