The Top 20 Highest-Yielding Dividend Aristocrats

Published on February 18th, 2022 by Bob Ciura

At Sure Dividend, we often steer income investors toward the Dividend Aristocrats. Investors looking for high-quality dividend stocks to buy and hold for the long-run, can find many attractive stocks on this prestigious list.

The Dividend Aristocrats are a select group of 66 stocks in the S&P 500 Index, with 25+ consecutive years of dividend increases.

You can download an Excel spreadsheet of all 66 Dividend Aristocrats (with metrics that matter such as dividend yields and price-to-earnings ratios) by clicking the link below:

Click here to download your Dividend Aristocrats Excel Spreadsheet List now.

We typically rank stocks based on their five-year expected annual returns, as stated in the Sure Analysis Research Database.

But for investors primarily interested in income, it is also useful to rank the Dividend Aristocrats according to their dividend yields.

This article will rank the 20 highest-yielding Dividend Aristocrats today.

High Yield Dividend Aristocrat #20: The Coca-Cola Company (KO)

Dividend Yield: 2.8%

Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non–alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide.

The company also has an exceptional 59-year dividend increase streak, making it a Dividend King.

Coca-Cola reported fourth quarter and full-year earnings on February 10th, 2022, and results were well ahead of estimates on both the top and bottom lines.

Earnings-per-share on an adjusted basis came to 45 cents, four cents ahead of expectations. Revenue was $9.5 billion, up nearly 11% year-over-year, and beating estimates by $570 million.

Organic sales in EMEA shot up 17%, while North America saw a very strong 14% gain. Asia-Pacific saw a 3% decline in organic sales. Hydration, sports, coffee, and tea grew 12% for the quarter, and nutrition, juice, dairy, and plant-based beverages were up 11%. The core sparkling soft drinks segment was up 8%, so strength was broad based.

Click here to download our most recent Sure Analysis report on The Coca-Cola Company (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #19: PepsiCo (PEP)

Dividend Yield: 2.8%

PepsiCo is a global food and beverage company that generates $82 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods. The company has more than 20 $1 billion brands in its portfolio

On 2/10/2022, PepsiCo announced that it would increase its annualized dividend by 7% to $4.60 starting with the dividend expected to be paid in June 2022, making the company a Dividend King. The company also announced a share repurchase authorization of up to $10 billion.

PepsiCo reported earnings results for the fourth quarter on 2/10/2022. For the quarter, revenue increased 12.4% to $25.3 billion, topping expectations by $1 billion. Adjusted EPS of $1.53 compared to adjusted EPS of $1.47 in the prior year. For the year, revenue grew 12.9% to $79.5 billion while adjusted EPS of $6.26 compared to $5.52 in 2020.

Organic sales for the fourth quarter and full year were 11.9% and 9.5%, respectively. For the quarter, beverages overall had an 7% increase in volumes while food and snack was up 4%. PepsiCo Beverages North America’s revenue grew 12% organically, with volumes up 7% as this segment continues to see higher market share penetration. Frito-Lay North America’s revenue was up 13% with volumes adding 4% to growth.

Click here to download our most recent Sure Analysis report on PepsiCo (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #18: V.F. Corp. (VFC)

Dividend Yield: 3.3%

V.F. Corporation is one of the world’s largest apparel, footwear and accessories companies. The company’s brands include The North Face, Vans, Timberland and Dickies. The company, which has been in existence since 1899, generated over $11 billion in sales in the last 12 months.

In late January, V.F. Corp reported (1/28/22) financial results for the third quarter of fiscal 2022. Revenue and organic revenue grew 22% and 15%, respectively, over the prior year’s quarter, driven by the EMEA and North American regions, which experienced a negative impact from the pandemic in the prior year’s period. Adjusted EPS grew 45%, from $0.93 to $1.35, and beat analysts’ consensus by $0.13.

For this fiscal year, V.F. Corp expects revenue of about $11.85 billion, slightly lower than the previous guidance of at least $12.0 billion but still reflecting 28% growth, and adjusted EPS to be around $3.20.

Click here to download our most recent Sure Analysis report on V.F. Corp. (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #17: The Clorox Company (CLX)

Dividend Yield: 3.3%

The Clorox Company is a manufacturer and marketer of consumer and professional products, spanning a wide array of categories from charcoal to cleaning supplies to salad dressing. More than 80% of its revenue comes from products that are #1 or #2 in their categories across the globe, helping Clorox produce more than $7 billion in annual revenue.

Clorox reported second quarter earnings on February 3rd, 2022, and results were very weak, and the stock fell more than 14% on the release. Total sales declined 8% to $1.7 billion, but the quarter followed a 27% year-over-year increase in the comparable period a year ago.

Clorox pointed out sales on a two-year basis were up 19% as a result. Volumes declined 10%, partially offset by a 2% gain from favorable price mix. Forex translation had no impact on sales, so organic sales were down 8%. Gross margin plummeted 1240 basis points to 33% of revenue. This was driven primarily by higher manufacturing, logistics, and commodity costs. Adjusted EPS fell 67% to 66 cents.

Click here to download our most recent Sure Analysis report on Clorox (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #16: T. Rowe Price Group (TROW)

Dividend Yield: 3.3%

T. Rowe Price Group is one of the largest publicly traded asset managers. The company provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries. T. Rowe Price had assets under management of $1.69 trillion as of December 31st, 2021.

On February 9th, 2021, T. Rowe Price declared a $1.08 quarterly dividend, representing a 20.0% increase and marking the company’s 35th year of increasing its payout.

In the 2021 fourth quarter, T. Rowe Price reported net revenue growth of 13.2% year-over-year to $1.962 billion, representing 0.119% of average AUM or roughly 47 basis points on an annualized basis. Adjusted net income equaled $736.7 million or $3.17 per share compared to $680.2 million or $2.89 per share in Q4 2020.

For the year, T. Rowe Price generated $7.672 billion in net revenue (or 0.48% of average AUM) up 23.6% compared to 2020. Adjusted net income equaled $2.995 billion or $12.75 per share versus $2.277 billion or $9.58 in 2020.

Shares trade for a P/E of 11.6, below our fair value estimate of 14. In addition to 3% expected EPS growth per year and the 2.8% dividend, T. Rowe Price stock could generate total returns of 9.6% per year.

Click here to download our most recent Sure Analysis report on T. Rowe Price (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #15: People’s United Financial (PBCT)

Dividend Yield: 3.4%

People’s United Financial is a diversified financial services company that provides commercial and retail banking and wealth management services via its network of over 400 branches in the Northeast. It has total assets of $64 billion.

On February 22nd, 2021, People’s United Financial agreed to be acquired by M&T Bank (MTB) in an all-stock deal. As a result, they will own 28% of the combined company after the completion of the deal. The two banks have minimum geographic overlap, and they will cover more than 20% of the U.S. population.

People’s United Financial reported (1/20/22) financial results for the fourth quarter of fiscal 2021. The net interest margin of the company slipped from 2.64% to 2.51% sequentially due to depressed interest rates but operating EPS grew 9%, from $0.33 in the third quarter to $0.36, primarily thanks to a reversal in provision for loan losses amid improved economic conditions. This is also the primary factor behind the record EPS of $1.48 in 2021.

Click here to download our most recent Sure Analysis report on PBCT (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #14: Kimberly-Clark (KMB)

Dividend Yield: 3.5%

Kimberly-Clark is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues.

It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generating nearly $20 billion in annual revenue.

Kimberly-Clark reported fourth quarter and full–year earnings on January 26th, 2022, and results were better than expected on both the top and bottom lines. EPS came to $1.30 on an adjusted basis, which was a nickel better than expected.

Total revenue was $4.97 billion, which was up 2.7% from the year–ago period and was $70 million better than estimates. Organic sales growth came to 3%, with the balance coming from the net impact of acquisitions and divestitures.

Full year adjusted earnings came to $6.18, which was down sharply from 2020. However, 2020 results were driven by extraordinary demand from the pandemic, which was not sustainable.

Click here to download our most recent Sure Analysis report on Kimberly-Clark (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #13: Federal Realty Investment Trust (FRT)

Dividend Yield: 3.6%

Federal Realty was founded in 1962. As a Real Estate Investment Trust, Federal Realty’s business model is to own and rent out real estate properties. It uses a significant portion of its rental income, as well as external financing, to acquire new properties. This helps create a “snow-ball” effect of rising income over time.

Federal Realty primarily owns shopping centers. However, it also operates in redevelopment of multi-purpose properties including retail, apartments, and condominiums. The portfolio is highly diversified in terms of tenant base. Federal Realty has a high-quality tenant portfolio.

Click here to download our most recent Sure Analysis report on Federal Realty (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #12: Cardinal Health (CAH)

Dividend Yield: 3.6%

Cardinal Health is one of the “Big 3” drug distribution companies along with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Health serves over 24,000 United States pharmacies and more than 85% of the country’s hospitals. The company has operations in more than 30 countries with approximately 44,000 employees.

On February 3rd, 2022, Cardinal Health released Q2 fiscal 2022 results for the period ending December 31st, 2021. (Cardinal Health’s fiscal year ends June 30th.) For the quarter the company reported revenue of $45.5 billion, a 9% increase from Q2 2021. On an adjusted basis the company posted earnings of $357 million or $1.27 per share compared to $514 million or $1.74 per share in the year ago period.

Click here to download our most recent Sure Analysis report on Cardinal Health (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #11: Franklin Resources (BEN)

Dividend Yield: 3.7%

Franklin Resources is a global asset manager with a long and successful history. The company offers investment management (which makes up the bulk of fees the company collects) and related services to its customers, including sales, distribution, and shareholder servicing.

On December 14th, 2021, Franklin Resources announced a $0.29 quarterly dividend, marking a 3.6% year-over-year increase and the company’s 42nd consecutive year of increasing its payment.

On February 1st, 2022, Franklin Resources reported Q1 fiscal year 2022 results for the period ending December 31st, 2021. (Franklin Resources’ fiscal year ends September 30th.)

Total assets under management equaled $1.578 trillion, up $48.0 billion compared to last quarter, as a result of $24.1 billion in long-term net inflows, $10.4 billion of positive market change, and other items. For the quarter, operating revenue totaled $2.224 billion.

This represents 0.143% of average AUM or ~57 basis points annualized. On an adjusted basis, net income equaled $553.6 million or $1.08 per share compared to $644.6 million or $1.26 per share in Q1 2021.

Click here to download our most recent Sure Analysis report on Franklin Resources (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #10: AbbVie Inc. (ABBV)

Dividend Yield: 3.9%

AbbVie Inc. is a pharmaceutical company spun off by Abbott Laboratories (ABT) in 2013. Its most important product is Humira, which is now facing biosimilar competition in Europe, which has had a noticeable impact on the company. Humira will lose patent protection in the U.S. in 2023.

Even so, AbbVie remains a giant in the healthcare sector, with a large and diversified product portfolio.

Based on expected 2021 earnings-per-share of $12.65, AbbVie trades for a price-to-earnings ratio of ~10.4. Our fair value estimate for AbbVie is a price-to-earnings ratio (P/E) of 10. We see the stock as just slightly overvalued right now.

Still, we expect annual earnings growth of 3.0%, while the stock has a 4.3% dividend yield. AbbVie is among the higher-yielding DRIP stocks. We expect total annual returns of 6.4% per year over the next five years.

Click here to download our most recent Sure Analysis report on AbbVie (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #9: 3M Company (MMM)

Dividend Yield: 3.9%

3M sells more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000 employees and serves customers in more than 200 countries.

3M is now composed of four separate divisions. The Safety & Industrial division produces tapes, abrasives, adhesives and supply chain management software as well as manufactures personal protective gear and security products.

The Healthcare segment supplies medical and surgical products as well as drug delivery systems. Transportation & Electronics division produces fibers and circuits with a goal of using renewable energy sources while reducing costs. The Consumer division sells office supplies, home improvement products, protective materials and stationary supplies.

3M reported fourth-quarter and full year earnings results on 1/25/2022. Revenue inched higher by 0.3% to $8.6 billion, which was $30 million better than expected. Earnings–per–share of $2.31 was down slightly from the prior year, but was $0.29 ahead of estimates.

For 2021, revenue grew 9.9% to $35.4 billion while earnings–per–share of $10.12 was an 8% improvement from the prior year.

Click here to download our most recent Sure Analysis report on 3M (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #8: Consolidated Edison (ED)

Dividend Yield: 3.9%

Consolidated Edison is a holding company that delivers electricity, natural gas, and steam to its customers in New York City and Westchester County. It has annual revenues of nearly $13 billion.

Consolidated Edison reported second quarter earnings results on 11/4/2021. Revenue improved 8.4% to $3.6 billion, beating expectations by $153 million. Adjusted net income of $499 million, or $1.41 per share, compared to adjusted net income of $495 million, or $1.48 per share, in the previous year. Adjusted EPS missed estimates by $0.07.

Higher rate bases for gas and electric customers added $0.06 to the company’s New York operations, though this was more than offset by higher costs related to healthcare and storm-related events. The pandemic impact on this business reduced earnings by $0.05. Higher revenues in company’s clean energy business added $0.13 to results.

The company reaffirmed prior guidance of adjusted earnings–per–share in a range of $4.15 to $4.35 for 2021, which would be a 1.7% increase at the midpoint from the previous year.

Click here to download our most recent Sure Analysis report on ConEd (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #7: Amcor plc (AMCR)

Dividend Yield: 4.0%

Amcor is one of the world’s most prominent designers and manufacturers of packaging for food, pharmaceutical, medical, and other consumer products. The company is headquartered in the U.K.

The company reported its first-quarter results for fiscal 2022 on November 2, 2021. Sales were up 10% for the quarter, with the vast majority of growth in the form of price increases. Net income was also up by 10% versus the first quarter of the previous fiscal year.

Management also provided an outlook for the rest of fiscal 2022, which calls for 7%-11% earnings-per-share growth for the full year. Management also expects an adjusted free cash flow of approximately $1.1 to $1.2 billion before dividends.

Click here to download our most recent Sure Analysis report on Amcor (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #6: Walgreens-Boots Alliance (WBA)

Dividend Yield: 4.0%

Walgreens Boots Alliance is the largest retail pharmacy in both the United States and Europe. Through its flagship Walgreens business and other business ventures, the company employs more than 325,000 people and has more than 13,000 stores.

On January 6th, 2021, Walgreens reported Q1 results for the period ending November 30th, 2021. Sales from continuing operations grew 7.8% over the prior year’s quarter, driven by COVID-19 vaccinations and testing.

U.S. retail comparable sales grew 11%, which is a 20 year high growth rate. Adjusted EPS grew 53%, from $1.10 to $1.68, and exceeded analysts’ consensus by $0.34.

An overview of Walgreens’ most recent quarterly performance can be seen in the image below:

Source: Investor Presentation

Click here to download our most recent Sure Analysis report on Walgreens (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #5: Chevron Corporation (CVX)

Dividend Yield: 4.2%

Chevron is the third–largest oil major in the world. In 2018, 2019 and 2021, Chevron generated 78%, 78% and 84% of its earnings from its upstream segment respectively.

In late January, Chevron reported (1/28/22) financial results for the fourth quarter of fiscal 2021. The company cut its production by 5% over the prior year’s quarter. However, it greatly benefited from the recovery from the pandemic and the deep production cuts of OPEC and Russia.

These forces led the price of oil to rally to a 7 year high. The average realized prices of oil and gas of Chevron nearly doubled over the prior year’s quarter and thus the oil major grew its adjusted EPS from $0.16 to $2.56, a nearly 8 year high.

In the full year, Chevron posted record free cash flow of $21.1 billion ($10.98 per share) and achieved a reserve replacement ratio of 112%. Management expects oil prices to fall back to mid-cycle levels at some point but raised the dividend by 6.0%

Click here to download our most recent Sure Analysis report on CVX (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #4: Leggett & Platt (LEG)

Dividend Yield: 4.3%

Leggett & Platt is an engineered products manufacturer. The company’s products include furniture, bedding components, store fixtures, die castings, and industrial products. Leggett & Platt has 14 business units and more than 20,000 employees. The company qualifies for the Dividend Aristocrats Index as it has 50 years of consecutive dividend increases.

Leggett & Platt reported its third-quarter earnings results on November 1. The company reported revenues of $1.3 billion for the quarter, which represents a 9% increase compared to the prior year’s quarter. Revenues were in line with the consensus estimate. The company’s revenue increase was weaker than the one recorded during the previous quarter, but that can be explained by the very easy comparison in Q2, whereas Q3 2020 had been better.

Leggett & Platt generated earnings–per–share of $0.71 during the third quarter, which was slightly weaker than the company’s EPS during the previous year’s third quarter.

Click here to download our most recent Sure Analysis report on Leggett & Platt (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #3: Realty Income (O)

Dividend Yield: 4.4%

Realty Income is a retail-focused REIT that owns more than 6,500 properties. It owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties.

This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.

The company’s long history of dividend payments and increases is due to its high-quality business model and diversified property portfolio.

Click here to download our most recent Sure Analysis report on Realty Income (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #2: ExxonMobil Corporation (XOM)

Dividend Yield: 4.5%

Exxon Mobil is a diversified energy giant with a market capitalization above $300 billion. In 2021, the upstream segment generated 62% of the total earnings of Exxon while the downstream and chemical segments generated 8% and 30% of the total earnings, respectively.

In early February, Exxon reported (2/1/22) financial results for the fourth quarter of fiscal 2021. The oil giant continued to recover strongly from the pandemic. It grew its production 2% over the prior year’s quarter and greatly benefited from the sustained rally of the prices of oil and gas.

As a result, Exxon grew its adjusted EPS from $0.03 in the prior year’s quarter to $2.05, the highest in more than 5 years. Even better, the price of oil has rallied to a new 8-year high this year thanks to limited supply from OPEC and Russia. In contrast to previous rallies of the oil price, producers have boosted their production conservatively, fearing that the rally will prove short–lived due to the secular shift of most countries from fossil fuels to clean energy sources.

As long as producers remain cautious, the oil price is likely to remain high and Exxon will keep thriving. However, while we expect oil prices to remain strong in the upcoming quarters, we do not expect oil prices to remain at such high levels for years.

Click here to download our most recent Sure Analysis report on Exxon Mobil (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #1: International Business Machines (IBM)

Dividend Yield: 5.1%

IBM is the highest-yielding Dividend Aristocrat. With a dividend yield above 5%, IBM is a high-dividend stock.

IBM is a global information technology company that provides integrated enterprise solutions for software, hardware, and services. IBM’s focus is running mission critical systems for large, multi-national customers and governments. IBM typically provides end-to-end solutions.

The company now has four business segments: Software, Consulting, Infrastructure, and Financing. IBM had annual revenue of ~$57.4B in 2021 (not including Kyndryl).

IBM reported excellent results for Q4 2021 on January 24th, 2021. Company-wide revenue increased 6.5% to $16.7 billion, while diluted adjusted earnings per share rose 78% to $3.35.

Revenue for Software increased 8% to $7,273M from $6,719M in comparable quarters due to 9% growth in Hybrid Platform & Solutions, and a 14% increase in Transaction Processing. Revenue was up 21% for RedHat and 15% for Automation. Consulting revenue increased 13% to $4,746M from $4,196M due to 20% rise in Business Transformation, 19% growth in Technology Consulting, and 8% growth in Application Operations.

For the year, total revenue increased to $57,350 million from $55,179 million driven by growth in Software and Consulting, while diluted adjusted earnings per share rose to $7.93 from $6.82 on a year-over-year basis.

Click here to download our most recent Sure Analysis report on IBM (preview of page 1 of 3 shown below):

Final Thoughts

High dividend yields are hard to find in today’s investing climate. The average dividend yield of the S&P 500 Index has steadily fallen over the past decade, and is now just 1.4%.

Investors can find significantly higher yields, but many extreme high-yield stocks have questionable business fundamentals. Investors should be wary of stocks with yields above 10%.

Fortunately, investors do not have to sacrifice quality in the search for yield. These 20 Dividend Aristocrats have market-beating dividend yields. But they also have high-quality business models, durable competitive advantages, and long-term growth potential.

You may also be looking to invest in dividend growth stocks with high probabilities of continuing to raise their dividends each year into the future.

The following Sure Dividend articles discuss other industries of the economy that could outperform:

2022 Lumber Stocks List 2022 Uranium Stocks List

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

The Dividend Achievers: dividend stocks with 10+ years of consecutive dividend increases. The Dividend Kings: considered to be the ultimate dividend growth stocks, the Dividend Kings list is comprised of stocks with 50+ years of consecutive dividend increases

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The Complete List of Monthly Dividend Stocks: stocks that pay dividends each month, for 12 payments over the year. The Blue Chip Stocks List: this database contains stocks that qualify as either Dividend Achievers, Dividend Aristocrats, or Dividend Kings.

Source suredividend

The Top 20 Highest-Yielding Dividend Aristocrats