Option Traders Are Turning Bullish On These Dividend Champions

Compiled by Luis Gonzalez: If you’re interested in income investing ideas, the following list might offer an interesting starting point.

The following is a list of dividend champions–stocks that have raised dividends every year for more than 25 consecutive years.

In addition, all of these dividend stocks have seen a rapid increase in the number of open call option positions–suggesting that options traders expect some near-term upside for these names. For each stock we’ll list the Put/Call ratio, which expresses the open call options positions relative to put option positions.

Considering the options market’s bullish sentiment, do you think these dividend champions are set for a rally? Full details below.

Options data sourced from Schaeffer’s, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 2/22  – 3/07)

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1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. visualise market cap changes for the top stocks mentioned

The list has been sorted by the change in the Put/Call ratio.

1. Tootsie Roll Industries Inc. (TR): Confectioners Industry. Market cap of $1.58B. Dividend yield 1.12%. Current Put/Call ratio at 0.8 vs. a previous ratio of 1.37 (41.61% change). The stock has had a good month, gaining 16.23%.

2. Mine Safety Appliances Co. (MSA): Medical Appliances & Equipment Industry. Market cap of $1.27B. Dividend yield 2.86%. Current Put/Call ratio at 0.76 vs. a previous ratio of 1.18 (35.59% change). The stock has had a couple of great days, gaining 17.23% over the last week.

3. Black Hills Corporation (BKH): Electric Utilities Industry. Market cap of $1.23B. Dividend yield 4.67%. Current Put/Call ratio at 0.31 vs. a previous ratio of 0.42 (26.19% change). The stock has had a couple of great days, gaining 5.79% over the last week.

4. Pitney Bowes Inc. (PBI): Business Equipment Industry. Market cap of $5.03B. Dividend yield 6.0%. Current Put/Call ratio at 0.96 vs. a previous ratio of 1.2 (20.0% change). The stock has had a couple of great days, gaining 9.94% over the last week.

5. Cintas Corporation (CTAS): Business Services Industry. Market cap of $4.07B. Dividend yield 1.75%. Current Put/Call ratio at 0.17 vs. a previous ratio of 0.2 (15.0% change). The stock has gained 11.64% over the last year.

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