Get Rich with Dividends: A Proven System for Earning Double-Digit Returns

The Champions

Dividend Aristocrats represent the bluest of the blue chips—big, solid companies with two and a half decades or more track records of raising dividends.

However, with only 40 to 50 stocks qualifying to be included in the index in a given year, we need to expand our universe—especially because not every Aristocrat has a decent yield. Just because a company has raised its dividend for 25 years in a row doesn’t mean it has an attractive dividend yield.

The yield could have started very small and grown at a minuscule pace. Or the stock could have gotten hot, running up in price and decreasing the yield. For example, Aristocrat Sherwin-Williams (NYSE: SHW) has raised its dividend for 33 consecutive years but still only yields 1.5%.

Therefore, we need to look in other places for companies with juicy yields that have a history of growing the dividend.

Enter the Champions.

The DRiP Resource Center (http://dripinvesting.org) maintains a list called the Dividend Champions. These stocks are similar to the Aristocrats in that the companies have raised their dividends for at least 25 consecutive years. However, they are not required to be part of the S&P 500 and have no liquidity or other restrictions. Just the 25-year track record with an annual dividend boost. That’s the only qualification.

I love the name Champions because it reminds me of my favorite sport, boxing, and that a person doesn’t need to be six foot three and 240 pounds to be a successful professional athlete.