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Dividend Champions and Strategic Options Income: Maximizing Returns from Quality Growth Stocks

Introduction

Dividend Champions represent a broader universe of dividend-growing companies than the more exclusive Dividend Kings or Aristocrats. These are companies that have increased their dividend payouts to shareholders for 25 consecutive years or more, regardless of their index membership. This expanded criteria opens the door to many excellent companies that may not be in the S&P 500 but still demonstrate exceptional dividend consistency and business quality.

Like their more exclusive counterparts, Dividend Champions provide an excellent foundation for options-based income strategies. By combining these quality dividend-growth stocks with cash-secured puts and covered calls, investors can create a systematic approach to generating income while building positions in fundamentally strong companies.

Understanding Dividend Champions

Dividend Champions include all companies that have raised dividends for 25+ consecutive years, spanning multiple exchanges and market capitalizations. This broader definition captures:

  • Large-cap growth leaders like Apple (AAPL) and Microsoft (MSFT)
  • Financial powerhouses like JPMorgan Chase (JPM) and Bank of America (BAC)
  • Technology innovators like Visa (V) and Mastercard (MA)
  • Healthcare leaders like UnitedHealth (UNH) and Merck (MRK)

This diversity provides investors with more opportunities across different sectors and growth profiles, making it easier to construct a well-balanced options income portfolio.

Strategic Advantage: Options on High-Quality Names

Dividend Champions often combine the stability of dividend growth with more dynamic price action than traditional utilities or consumer staples. This creates several advantages for options strategies:

  1. Higher option premiums - Many Champions have more volatility than Kings/Aristocrats, generating better premium income
  2. Excellent liquidity - Popular names like Apple, Microsoft, and JPMorgan have very liquid options chains
  3. Growth potential - Unlike mature dividend stalwarts, many Champions still offer significant capital appreciation
  4. Institutional support - Heavy institutional ownership provides price stability during market stress

This combination of dividend reliability and growth potential makes Champions ideal for aggressive income strategies.

List of Dividend Champions - As of 2025

Companies with 25+ years of consecutive dividend increases (100 stocks):

  • ABM - ABM Industries
  • ADM - Archer-Daniels-Midland
  • ADP - Automatic Data Processing
  • AFL - Aflac
  • ALB - Albemarle
  • ALRS - Alerus Financial
  • ANDE - Andersons
  • AOS - A.O. Smith
  • APD - Air Products & Chemicals
  • AROW - Arrow Financial
  • ARTNA - Artesian Resources
  • ATO - Atmos Energy
  • ATR - AptarGroup
  • AWR - American States Water
  • BANF - BancFirst
  • BDX - Becton Dickinson
  • BEN - Franklin Resources
  • BF.B - Brown-Forman Class B
  • BKH - Black Hills
  • BMI - Badger Meter
  • BRC - Brady Corporation
  • BRO - Brown & Brown
  • CASY - Casey's General Stores
  • CAT - Caterpillar
  • CB - Chubb
  • CBSH - Commerce Bancshares
  • CBU - Community Bank System
  • CFR - Cullen/Frost Bankers
  • CHD - Church & Dwight
  • CHRW - C.H. Robinson
  • CINF - Cincinnati Financial
  • CL - Colgate-Palmolive
  • CLX - Clorox
  • CNI - Canadian National Railway
  • CSL - Carlisle Companies
  • CTAS - Cintas
  • CTBI - Community Trust Bancorp
  • CVX - Chevron
  • CWT - California Water Service Group
  • DCI - Donaldson Company
  • DOV - Dover
  • EBTC - Enterprise Bancorp
  • ECL - Ecolab
  • ED - Consolidated Edison
  • EMR - Emerson Electric
  • ENB - Enbridge
  • EPD - Enterprise Products Partners
  • ERIE - Erie Indemnity
  • ES - Eversource Energy
  • ESS - Essex Property Trust
  • EXPD - Expeditors International
  • FAST - Fastenal
  • FDS - FactSet Research Systems
  • FELE - Franklin Electric
  • FRT - Federal Realty Investment Trust
  • FUL - H.B. Fuller
  • GD - General Dynamics
  • GGG - Graco
  • GPC - Genuine Parts
  • GWW - W.W. Grainger
  • HRL - Hormel Foods
  • HTO - Helios Technologies
  • IBM - International Business Machines
  • ITW - Illinois Tool Works
  • JKHY - Jack Henry & Associates
  • JNJ - Johnson & Johnson
  • KMB - Kimberly-Clark
  • KO - Coca-Cola
  • LANC - Lancaster Colony
  • LECO - Lincoln Electric
  • LIN - Linde
  • LOW - Lowe's
  • MATW - Matthews International
  • MCD - McDonald's
  • MDT - Medtronic
  • MGEE - MGE Energy
  • MGRC - McGrath RentCorp
  • MKC - McCormick
  • MO - Altria Group
  • MSA - MSA Safety
  • NDSN - Nordson
  • NEE - NextEra Energy
  • NFG - National Fuel Gas
  • NJR - New Jersey Resources
  • NNN - National Retail Properties
  • NUE - Nucor
  • NWFL - Norwood Financial
  • NWN - Northwest Natural Holding
  • O - Realty Income
  • ORI - Old Republic International
  • OZK - Bank OZK
  • PB - Prosperity Bancshares
  • PEP - PepsiCo
  • PG - Procter & Gamble
  • PH - Parker Hannifin
  • PII - Polaris
  • PPG - PPG Industries
  • RBCAA - Republic Bancorp Class A
  • RGCO - RGC Resources
  • RLI - RLI

Original Content by MyATMM Research Team | Published: October 12, 2025 | Educational Use Only