20 Dividend Contenders For Growth And Income

Today I'm highlighting the income growth category known as Dividend Contenders. These stocks have raised dividends without interruption over a period of more than 10 years but less than 25. Exactly 185 companies fulfilled these criteria. Dividend Champions surpass this by more than 25 years of uninterrupted growth.

I made a list of the 20 best, highly recommended Contenders with larger capitalization. I often choose larger capitalized stocks because I think that they have a more diversified business model and therefore less risk.
Below, the 20 most recommended Dividend Contenders; Three have a yield over three percent. Five have a strong buy rating.

CVS Caremark (CVS) has a market capitalization of $62.15 billion. The company employs 202,000 people, generates revenue of $107.100 billion and has a net income of $3.488 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.898 billion. The EBITDA margin is 7.37 percent (the operating margin is 5.91 percent and the net profit margin 3.26 percent).

Financial Analysis: The total debt represents 15.52 percent of the company’s assets and the total debt in relation to the equity amounts to 26.32 percent. Due to the financial situation, a return on equity of 9.22 percent was realized. Twelve trailing months earnings per share reached a value of $2.98. Last fiscal year, the company paid $0.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.74, the P/S ratio is 0.58 and the P/B ratio is finally 1.70. The dividend yield amounts to 1.81 percent and the beta ratio has a value of 0.75.






Polaris Industries (PII) has a market capitalization of $6.03 billion. The company employs 3,900 people, generates revenue of $2.656 billion and has a net income of $227.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $392.22 million. The EBITDA margin is 14.76 percent (the operating margin is 13.17 percent and the net profit margin 8.57 percent).

Financial Analysis: The total debt represents 8.73 percent of the company’s assets and the total debt in relation to the equity amounts to 21.45 percent. Due to the financial situation, a return on equity of 52.25 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $0.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.51, the P/S ratio is 2.27 and the P/B ratio is finally 11.95. The dividend yield amounts to 1.69 percent and the beta ratio has a value of 1.73.






QUALCOMM (QCOM) has a market capitalization of $108.90 billion. The company employs 26,600 people, generates revenue of $19.121 billion and has a net income of $5.283 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.499 billion. The EBITDA margin is 33.99 percent (the operating margin is 29.28 percent and the net profit margin 27.63 percent).

Financial Analysis: QCOM has no long-term debt. Due to the financial situation, a return on equity of 17.64 percent was realized. Twelve trailing months earnings per share reached a value of $3.06. Last fiscal year, the company paid $0.93 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.86, the P/S ratio is 5.70 and the P/B ratio is finally 3.25. The dividend yield amounts to 1.56 percent and the beta ratio has a value of 1.04.






Take a closer look at the full list of 20 Dividend Contenders with the highest buy rating. The average P/E ratio amounts to 21.71 and forward P/E ratio is 16.90. The dividend yield has a value of 2.28 percent. Price to book ratio is 3.89 and price to sales ratio 2.61. The operating margin amounts to 14.87 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 0.55.

Here is the full table with some fundamentals (TTM):


Related stock ticker symbols:
WPC, EPD, PAA, NTT, ENB, BHP, CAH, JW-A, NATI, NUS, CVS, ARG, PII, LECO, QCOM,
NVO, SEIC, ECL, FDX, EOG

*I am long NUS. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.