Dividend Contenders represent the next generation of dividend-growth companies. These are businesses that have increased their dividend payouts to shareholders for 10 to 24 consecutive years—not yet qualifying for Champion status but demonstrating strong momentum and potential to join the elite ranks. This category often includes some of the most dynamic and fastest-growing companies in the market.
For options traders, Dividend Contenders can offer the best of both worlds: the excitement of growth stocks with the stability that comes from a consistent dividend policy. Their shorter track records are often compensated by higher growth rates and more volatile price action—perfect conditions for cash-secured puts and covered calls strategies.
Dividend Contenders often represent companies in their prime growth phases that have developed sufficient cash flow consistency to support regular dividend increases. This unique position offers several advantages:
These companies typically offer higher volatility than mature dividend aristocrats, creating more lucrative opportunities for premium generation through options strategies.
The unique characteristics of Dividend Contenders make them particularly attractive for options income strategies:
While the dividend yields may be modest, the combination of growth potential and option premiums can deliver superior total returns compared to traditional income investing approaches.
Companies with 10-24 years of consecutive dividend increases (360 stocks):