This article provides an updated list of the Dividend Contenders in 2022, select financial data, and analysis. The list and data are updated monthly.
The Dividend Contenders 2022 are companies on US exchanges that have increased their dividend for 10 to 24 consecutive years. Although this feat does not seem difficult, the list is a relatively small one of only 307 companies as of January 28, 2022. This number is out of nearly 6,000 companies listed on New York Stock Exchange (NYSE) and NASDAQ in 2022, indicating a success rate of approximately 5.17%.
This value is more than twice the success rate of becoming a Dividend Champion and about 10X greater than the success rate of becoming a Dividend King. Hence, it is no small feat for a company to make the Dividend Contenders 2022 list. These companies may not have grown revenue and earnings per share every year, but they annually raised the dividend without fail.
Some of the Dividend Contenders 2022 will become Dividend Champions, and a few will become Dividend Kings. However, many companies will also drop off the Dividend Contenders list since they cannot sustain the dividend during times of economic distress, e.g., the COVID-19 pandemic or the Great Recession. During severe economic downturns, companies struggle with revenue, earnings per share, and free cash flow. As a result, dividend safety usually declines, and sometimes the dividend is cut or suspended.
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Market Update for the Dividend Contenders 2022
The Dividend Contenders 2022 are currently (as of January 28, 2022) trading at an elevated valuation of a trailing average price-to-earnings ratio of about 24.0X. This multiple is down from its peak of more than 27X in May 2021 due to declining stock prices and rising earnings.
The current average dividend yield is about 2.44%. The trailing average 10-year dividend growth rate is about 9.55%, and the average past 5-year dividend growth rate is around 12.62%. The average payout ratio is approximately 46.33%. The average market cap of the Dividend Contenders 2022 is currently $44,598 million.
Currently, the Dividend Contender with the highest yield is Delek Logistics Partners (DKL), and the one trading with the lowest earnings multiple is Steel Dynamics (STLD).
You can look at updated, select financial data and the dividend earnings calendar for each stock in the Dividend Kings list in the tables at the end of the article. The most recent dividend increases are also available for you to search.
In the trailing 1-year, the Dividend Contenders 2022 has returned +22.4% (blue line) as a group compared to +18.6% for the S&P 500 Index (red line), as seen in the chart below. Again, I used Stock Rover* for this chart. Over the trailing 5-years, the Dividend Contenders 2022 have returned +105.5, and the S&P 500 has returned +96.6%.
StockRover* is one of the best stock, ETF, and mutual fund screeners and analysis tools. It has 8,500+ stocks, 4,000 ETFs, and 40,000 mutual funds. You can get access up to 650+ metrics and financial data. The Stock Rover* platform includes watchlists, portfolio integration, portfolio rebalancing, e-mail and text alerts, future income forecasts, etc.
In 2021, The Andersons (ANDE), Enterprise Products Partners LP (EPD), and Church & Dwight (CHD) were added to the list of Dividend Champions.
Several long-time Dividend Contenders in 2020 were promoted to the Dividend Champions list.
These stocks hit the 25-year mark for consecutive annual dividend increases. The promoted companies include Canadian National Railways (CNI), International Business Machines (IBM), Polaris Inc (PII), New Jersey Resources (NJR), First of Long Island Corp (FLIC), Enbridge (ENB), and RenaissanceRe Holdings (RNR).
Additions and Deletions to the Dividend Contenders
Each year there are numerous additions to the Dividend Contenders list. We are not tracking specific companies due to the number involved. However, the articles below are about prominent companies that cut or suspended their dividend.
Other Dividend Stock Lists
I have also written about other US stock lists, including
For Canadian stocks, I have recently updated my article on
For UK stocks, I have an article on
Other dividend stock lists
Some Details on the Dividend Contenders 2022
Dividend Contenders Sector Breakdown
Companies from the Financial Sector have the most significant representation on the Dividend Contenders 2022 list with 111 companies. This sector is followed by Industrials with 46 companies, Utilities with 32 companies, and Healthcare with 22 companies. The top three did not change in the past few years. The Consumer Cyclical sector had many companies that suspended or cut their dividends and thus have trended lower.
Financials tend to have stable and generally rising earnings over time, except for recessions. Many financial companies cut, froze, or suspended dividends during the Great Recession. But many also restarted dividend growth as soon as the recovery began. Thus, they are now at about ten years of consecutive dividend increases allowing them to enter the Dividend Contenders list. This fact is especially true of regional banks, the number one industry on the list.
Industrial companies tend to have somewhat more volatile earnings and cash flows, but many have low payout ratios letting them grow the dividends during recessions and economic downturns. The specialty industrial machinery category has a high number on the list.
On the other hand, Utilities tend to have stable and regular cash flow and earnings over long periods. Instead, they do not grow quickly; they grow slowly and steadily. Utilities have a service and product that is necessary. Both regulated electric and diversified utilities have significant representation on the Dividend Contenders list.
Market Size of the Dividend Contenders 2022
The largest of the Dividend Contenders 2022 by market capitalization is Microsoft Corporation (MSFT), the software behemoth, which has raised the dividend for 20 straight years. Microsoft will likely become a Dividend Aristocrat and Dividend Champion. A few companies are on the Dividend Contenders 2022 list with market capitalizations less than $100M, especially if we include the over-the-counter (OTC) market. Investors should be wary when investing in companies with such small market capitalization due to the associated risks.
What Do I like About the Dividend Contenders 2022?
The Dividend Contenders 2022 list serves as a screen for further investigating a stock for a dividend growth portfolio. The Dividend Contenders 2022 are companies with stable businesses that have competitive advantages. Moreover, they have returned cash to shareholders consistently through dividends and, in many cases, share buybacks. In addition, many of these companies are not mature and still on decent growth trajectories resulting in good dividend growth and stock price appreciation.
The Dividend Contenders 2022 List is not as exclusive as the Dividend Kings 2022 or Dividend Champions 2022 lists. Still, ~307 out of about 6,000 companies is roughly 5.2%. This value indicates the success of these companies.
The Dividend Contenders 2022 list changes relatively slowly as only a few companies graduate to the Dividend Champions list each year. However, a decent number of companies do attain the 10-year mark adding to the list from the Dividend Challengers list.
List of Dividend Contenders in 2022 – Updated 01/28/22
Dividend Calendar for the Dividend Contenders 2022
I used Stock Rover* for creating this table.
Source: Stock Rover* (as of January 28, 2022)
Thanks for reading about the Dividend Contenders 2022!
Prior Year Lists and Articles
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