I firmly believe that investing safely is the key to consistently doing well in the stock market. There’s a certain allure to day trading, the thrill of the possibility of 10x-ing your capital in a few days. However, not everyone has the availability to accommodate daily market monitoring on top of everything else in their day.
That’s why Dividend Aristocrats are some of my personal favorite stocks, with their consistent dividend increases and relatively stable foothold in their respective sectors. And while you shouldn’t always look at dividend yields as the sole indicator to buy or sell a stock, it’s better to keep an eye on those at the top.
So, let’s look at the highest-yielding Dividend Aristocrats in the market today.
How I Screened For These Stocks
With Barchart, finding the highest-yielding Dividend Aristocrats is quite easy, as I already have a Dividend Aristocrat list, courtesy of the Watchlist feature. Any watchlist I create comes with several pieces of information immediately available for viewing. These details include technical metrics (200-day moving average, 14-day RSI, and Barchart Opinion ratings) and important stock information, such as the last trading price, YTD percent change, and dividend yields.
So, I accessed my Dividend Aristocrat watchlist and clicked on the DIV YIELD column header to arrange the stocks from highest to lowest yields.
Then, I took the top three. It’s that simple!
Now, let’s talk about the highest-yielding Dividend Aristocrats today and see if they are worth a buy, starting from lowest to highest yields.
Amcor Plc (AMCR)
Amcor is a global packaging company that develops, produces, and distributes packaging materials. The company serves different market sectors like food and beverage, healthcare, home, personal, and pet care. It also offers technical application products for laboratories and agricultural and botanical purposes.
One of the more impressive aspects of Amcor’s operation is its sustainability pledge. Since 2018, the company has been working to make its packaging products reusable or recyclable. It aims to achieve 100% reusability/recyclability by 2025, and by all indications, it’s well on its way to meeting its target.
The company’s FY’23 report displayed moderate growth, with net sales increasing by 1% YOY from $14.54 billion to $14.69 billion. GAAP net income grew comparatively higher, reaching $1 billion from $805 million in 2022. Amcor’s current fiscal year will end on June 30, 2024, and results will be released in August, so we’ll know more when that drops.
AMCR stock currently pays a $0.1250 quarterly dividend, which works out to 50 cents annually and translates to a 4.92% yield.
Franklin Resources (BEN)
Franklin Resources, better known as Franklin Templeton, is one of the world's largest investment management companies. The company offers specialized investment services and covers fixed-income, equity, alternatives, and multi-asset solutions. It also works with over 1,300 investment professionals. As of the end of 2023, the company has an estimated $1.5 trillion in assets.
Franklin Resources’ FY’23 report was mixed. Adjusted operating revenues slightly fell from $6.47 billion to $6.10 billion. This goes the same for operating income, which ended at $1.8 billion from last year’s $2.32 billion.
Analysts rate BEN stock as a moderate sell, which could be a fair warning—or a chance to pick up a Dividend Aristocrat for cheap.
Still, there was some good news. In 2023, cash and cash equivalents increased from $6.75 billion to $6.94 billion. Despite the slight decline, the company increased its quarterly dividend payouts by 3.3%, resulting in a $1.24 annual rate. This represents a 5.34% yield.
Realty Income Corp (O)
Topping the list of the highest-yielding Dividend Aristocrats today is Realty Income. The REIT has more than 15,000 real estate properties worldwide, serving over 89 separate industries with over 98% occupancy rates. Realty Income is one of approximately 80 companies that pay monthly dividends. However, it does have the distinction of being a Dividend Aristocrat that has increased payouts since 1994.
Unlike the other two in this list, Realty Income is in far better straits. Total revenue for FY’23 increased to $4.08 billion from $3.34 billion, bringing EPS to $1.42 from last year’s $1.26. Additionally, adjusted funds from operations reached $4.00 from $3.92—good news for dividend investors with O stock in their portfolio.
Speaking of dividends, the company recently increased its monthly payout from $0.2570 to $0.2625, bringing its annual dividend to $3.15, which translates to a 5.80% yield. Additionally, the company has a moderate buy rating based on 18 analysts.
Final Thoughts
High yields don’t always mean good buys; however, having a well-diversified portfolio of quality stocks (like the Dividend Aristocrats) is the first step to generating passive income.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
