First Published on February 17th, 2022 by Bob Ciura for SureDividend
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 68 stocks in the S&P 500 Index, with 25+ consecutive years of dividend increases.
You can download an Excel spreadsheet of all 68 Dividend Aristocrats (with metrics that matter such as dividend yields and price-to-earnings ratios) by clicking the link below:
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.
Table of Contents
- High Yield Dividend Aristocrat #20: The Clorox Company (CLX)
- High Yield Dividend Aristocrat #19: The Coca-Cola Company (KO)
- High Yield Dividend Aristocrat #18: ExxonMobil Corporation (XOM)
- High Yield Dividend Aristocrat #17: Medtronic plc (MDT)
- High Yield Dividend Aristocrat #16: Consolidated Edison (ED)
- High Yield Dividend Aristocrat #15: Stanley Black & Decker (SWK)
- High Yield Dividend Aristocrat #14: Chevron Corporation (CVX)
- High-Yield Dividend Aristocrat #13: Essex Property Trust (ESS)
- High-Yield Dividend Aristocrat #12: Kimberly-Clark (KMB)
- High-Yield Dividend Aristocrat #11: Franklin Resources (BEN)
- High-Yield Dividend Aristocrat #10: Federal Realty Investment Trust (FRT)
- High-Yield Dividend Aristocrat #9: AbbVie Inc. (ABBV)
- High-Yield Dividend Aristocrat #8: T. Rowe Price Group (TROW)
- High-Yield Dividend Aristocrat #7: Amcor plc (AMCR)
- High-Yield Dividend Aristocrat #6: V.F. Corp (VFC)
- High-Yield Dividend Aristocrat #5: Realty Income (O)
- High-Yield Dividend Aristocrat #4: International Business Machines (IBM)
- High-Yield Dividend Aristocrat #3: Walgreens-Boots Alliance (WBA)
- High-Yield Dividend Aristocrat #2: Leggett & Platt (LEG)
- High-Yield Dividend Aristocrat #1: 3M Company (MMM)
High Yield Dividend Aristocrat #20: The Clorox Company (CLX)
- Dividend Yield: 3.1%
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.
Source: Investor Presentation
Clorox reported first quarter earnings on November 1st, 2022, and results were better than expected on both the top and bottom lines. The company reported adjusted earnings-per-share of 93 cents, which was 15 cents better than expected. Revenue was down 3.9% year-over-year to $1.74 billion, but was $40 million ahead of expectations.
Sales contraction of 4% compared to a 6% gain in the year-ago period. The decline was driven by lower sales volume, partially offset by favorable price mix. Organic sales declined 2%, although the three-year average growth rate for net sales was +5%.
Gross margin declined 110bps to 36% of revenue from 37.1% year-over-year. This was due to higher manufacturing and logistics costs, higher commodity costs, and lower volume. These were partially offset by the benefits of pricing and cost saving initiatives. Adjusted earnings-per-share declined 23% because of lower gross margin, lower volume, and higher SG&A, partially offset by the benefits of pricing actions.
Click here to download our most recent Sure Analysis report on Clorox (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #19: The Coca-Cola Company (KO)
- Dividend Yield: 3.1%
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. Its brands account for about 2 billion servings of beverages worldwide every day, producing over $42 billion in annual revenue.
Source: Investor Presentation
Coca-Cola reported third quarter earnings on October 25th, 2022, and results were better than expected on both the top and bottom lines. Earnings-per-share on an adjusted basis came to 69 cents, which was a nickel better than expected. Revenue was up 11% year-over-year to $11.1 billion, which was also $600 million better than estimates. Further, the company guided for 14% to 15% in organic revenue growth this year.
Global unit case volume was up 4% in Q3. Organic sales were up 16%, which was almost double the expected 9.8% gain. The Europe, Middle East & Africa region saw a 20% organic sales gain, Latin America was up 18%, and North America was up 14%.
Click here to download our most recent Sure Analysis report on KO (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #18: ExxonMobil Corporation (XOM)
- Dividend Yield: 3.1%
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 late January, Exxon reported (1/31/23) financial results for the fourth quarter of fiscal 2022. Production in the Permian reached an all-time high and its total production rose 3%. However, oil and gas prices moderated off their blowout levels in previous quarters. As a result, Exxon’s earnings-per-share declined -24% sequentially, from $4.45 to $3.40.
For the full year, Exxon posted record earnings-per-share of $14.06.
Source: Investor Presentation
Thanks to the sustained tailwind from the sanctions of western countries on Russia, we expect strong earnings-per-share of about $10.50 in 2023. In contrast to previous rallies of oil and gas prices, producers have boosted their output conservatively, fearing that the rally will prove short-lived due to the secular shift of most countries from fossil fuels to clean energy sources.
Exxon also raised its dividend by 3% in the fourth quarter, extending its dividend growth streak to 40 years. It also has a $30 billion share repurchase program for 2022-2023. This could reduce the share count by 7% at current stock prices.
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 #17: Medtronic plc (MDT)
- Dividend Yield: 3.2%
Medtronic is the largest manufacturer of biomedical devices and implantable technologies in the world. The company serves physicians, hospitals, and patients in more than 150.
Medtronic has four operating segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes. It has a strong product pipeline to fuel its future growth.
Source: Investor Presentation
Medtronic has raised its dividend for 45 consecutive years. The company generated $32 billion in revenue in its last fiscal year.
In May 2022, Medtronic raised its dividend to $0.68 per share; the company’s 45th consecutive yearly increase.
In late November, Medtronic reported (11/22/22) results for the second quarter of fiscal year 2023. Organic revenue grew 2% over last year’s quarter but revenue dipped -3% and earnings-per-share fell -2% due to a strong dollar. Results were hurt by slow supply recovery and modest market procedure volumes in some businesses.
Medtronic lowered its guidance for annual earnings-per-share from $5.53-$5.65 to $5.25-$5.30.
Click here to download our most recent Sure Analysis report on MDT (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #16: Consolidated Edison (ED)
- Dividend Yield: 3.4%
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.
On November 3rd, 2022, Consolidated Edison released third quarter results for the period ending September 30th, 2022. Revenue grew 15.3% to $4.17 billion, $449 million more than expected. Adjusted earnings of $579 million, or $1.63 per share, compared to adjusted earnings of $499 million, or $1.41 per share, in the previous year. Adjusted earnings-pershare was $0.17 above estimates.
Results benefited from higher electric rates and lower costs related to heat events during the quarter. For example, higher rate bases for gas and electric customers added $0.08 to the company’s New York operations while lower costs related to heat events contributed $0.04. Edison expects capital investments of nearly $16 billion for the 2022 to 2024 time period, with $4.7 billion targeted for green energy projects, such as smart systems and electric vehicles.
Consolidated Edison updated its guidance for 2022 as well. The company now expects adjusted earnings-per-share of $4.50 to $4.60 for the year, up from $4.40 to $4.60 previously. This would be a 3.6% increase from the prior year. The company also expects a five-year earnings growth of 5% to 7%.
Rate increases are a major driver of Consolidated Edison’s growth.
Source: Investor Presentation
Click here to download our most recent Sure Analysis report on ConEd (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #15: Stanley Black & Decker (SWK)
- Dividend Yield: 3.5%
Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.
Source: Investor Presentation
On February 2nd, 2023 Stanley Black & Decker announced fourth quarter and full year results for the period ending December 31st, 2022. For the quarter, revenue declined 1.5% to $4 billion, but beat estimates by $120 million. Adjusted earnings-per-share of -$0.10 compared very unfavorably to $2.14 in the prior year, but was $0.24 above expectations.
For the year, revenue grew 11% to $16.9 billion. Adjusted earnings-per-share of $4.62 was down from $11.20 in 2021, but at the high end of the company’s guidance.
Organic sales for Tools & Outdoor, the largest segment within the company, declined 5% as a 7% benefit from pricing was once again more than offset by a decline in volume. North America fell 7%, Europe was lower by 3% and Emerging Markets improved 1%. Industrial organic growth remained strong, improving 10%.
Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #14: Chevron Corporation (CVX)
- Dividend Yield: 3.6%
Chevron is the third–largest oil major in the world. In 2021, Chevron generated 84% of its earnings from its upstream segment. The company has increased its dividend for over 40 consecutive years.
In late January, Chevron reported (1/27/23) financial results for the fourth quarter of fiscal 2022. Its production fell 3% over the prior year’s quarter due to the end of concessions in Asia, which more than offset high production growth in the Permian.
Source: Investor Presentation
However, Chevron greatly benefited from nearly record refining margins, which resulted from the sanctions of western countries on Russia for its invasion in Ukraine. As a result, the oil giant grew its earnings-per-share 60%, from $2.56 to $4.09, though it missed the analysts’ consensus by $0.20. Chevron raised its dividend by 6% and announced a massive share repurchase program of $75 billion, enough to reduce the share count by 22%.
Click here to download our most recent Sure Analysis report on CVX (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #13: Essex Property Trust (ESS)
- Dividend Yield: 3.7%
Essex Property Trust was founded in 1971. The trust invests in west coast multifamily residential proprieties where it engages in development, redevelopment, management and acquisition of apartment communities and a few other select properties.
Essex has ownership interests in several hundred apartment communities consisting of over 60,000 apartment homes. The trust has about 1,800 employees and produces approximately $1.6 billion in annual revenue.
Source: Investor Presentation
On February 7th, 2023 Essex announced its fourth quarter and full-year 2022 earnings results. Q4 FFO of $3.77 beat analyst estimates by $0.04. The trust achieved same-property revenue and net operating income growth of 10.5% and 13.3%, respectively, compared to the fourth quarter of 2021. As of February 6, 2023, the Company had approximately $1.3 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash, and marketable securities.
Click here to download our most recent Sure Analysis report on ESS (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #12: Kimberly-Clark (KMB)
- Dividend Yield: 3.7%
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), generatingnearly $20 billion in annual revenue.
The company recently reported fourth-quarter and full-year 2022 results.
Source: Investor Presentation
Kimberly-Clark reported fourth quarter and full-year earnings on January 25th, 2023, and results were ahead of expectations on both the top and bottom lines. Adjusted earnings-per-share came to $1.54, which was three cents ahead of estimates. Revenue was flat year-over-year at $5 billion, but fractionally beat expectations.
The company reported organic sales growth of 5% for the quarter, which was driven by a 10% increase in net selling prices, as well as a 1% increase from mix. However, that was substantially offset by a 7% decline in volumes. This missed expectations for a 5% decline in volumes. Fourth quarter operating profit was $712 million in 2022, up sharply from $521 million in 2021.
Looking forward, Kimberly-Clark expects net sales growth of 0% to 2% with organic sales growing between 2% and 4%. Forex is expected to reduce operating profits by 2%, while earnings-per-share are expected to grow at a mid-single digit rate.
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 #11: Franklin Resources (BEN)
- Dividend Yield: 3.8%
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 January 30th, 2023, Franklin Resources reported first quarter 2023 results for the period ending December 31st, 2022. (Franklin Resources’ fiscal year ends September 30th.) Total assets under management equaled $1.388 trillion, up $90.3 billion compared to last quarter, as a result of $48.8 billion of net market charge, distributions and other, a $34.9 billion increase due to the acquisition of Alcentra Holdings, and $17.5 billion of cash management net inflows.
For the quarter, operating revenue totaled $1.967 billion, up 1% year-over-year. On an adjusted basis, net income equaled $262.4 million or $0.51 per share compared to $553.6 million or $1.08 per share in Q4 2021. During Q1, Franklin repurchased 0.5 million shares of stock for $14 million. Franklin ended the quarter with $5.6 billion of cash and investments.
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: Federal Realty Investment Trust (FRT)
- Dividend Yield: 3.9%
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.
Source: Investor Presentation
On November 3rd, 2022, Federal Realty reported Q3 results. It generated funds from operations per diluted share of $1.59 for the quarter compared to $1.51 for the third quarter 2021. FRT also generated comparable property operating income growth of 3.7% for the third quarter and 8.8% year-to-date.
It also achieved continued record levels of leasing with 119 signed leases for 562,859 square feet of comparable space in the third quarter, the highest third quarter volume on record. Federal Realty’s portfolio was 92.1% occupied and 94.3% leased, representing year-over-year increases of 190 basis points and 150 basis points, respectively and 10 basis point and 20 basis point increases, respectively quarter-over-quarter.
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 #9: AbbVie Inc. (ABBV)
- Dividend Yield: 4.0%
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.
Source: Investor Presentation
AbbVie reported its fourth quarter earnings results on February 9. The company generated revenues of $15.1 billion during the quarter, which was 2% more than AbbVie’s revenues during the previous year’s quarter. AbbVie generated slightly lower revenues than the analyst community had forecasted, as it missed the top line consensus by $180 million.
AbbVie’s revenues were positively impacted by compelling growth from some of its newer drugs, including Skyrizi and Rinvoq, while Humira remained AbbVie’s biggest drug in terms of overall revenue contribution.
AbbVie earned $3.60 per share during the fourth quarter, which was 17% more than the company’s earnings-per-share during the previous year’s quarter. AbbVie’s earnings-per-share beat the consensus analyst estimate by $0.02. AbbVie’s guidance for 2023’s adjusted earnings-per-share was announced below the analyst consensus, the company expects to earn $10.70 – $11.10 on a per-share basis this year.
Click here to download our most recent Sure Analysis report on AbbVie (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #8: T. Rowe Price Group (TROW)
- Dividend Yield: 4.1%
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.
On January 26th, 2023, T. Rowe Price announced fourth quarter and full year results for the period ending December 31st, 2022. For the quarter, revenue fell 22.4% to $1.52 billion, which was $10 million less than expected. Adjusted earnings-per-share of $1.74 compared to $3.17 in the prior year, but was $0.03 above estimates. For the year, revenue fell 15.4% to $6.5 billion while adjusted earnings-per-share of $8.02 compared to $12.75 in 2021.
During the quarter, assets under management (AUM) declined 12.6% to $1.27 trillion. This decline was due to net client outflows of $17.1 billion, net distributions not reinvested of $2.5 billion, client transfers of $2.1 billion, and market deprecation. Operating expenses increased 15.6% year-over-year and 25.4% sequentially to $1.3 billion.
Click here to download our most recent Sure Analysis report on TROW (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #7: Amcor plc (AMCR)
- Dividend Yield: 4.2%
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.
Amcor reported its first-quarter results for Fiscal Year (FY) 2023 on November 1th, 2022. The company fiscal year ends at the end of June. Sales were up 9% for the quarter compared to the first quarter of FY 2022. This quarter, sales grew from $3,712 million in 1Q2022 to $3,420 million this quarter, driven by price increases of about $400 million representing 12% growth.
Net sales on a comparable constant currency basis were 3% higher than the same period last year reflecting price/mix benefits. Volumes were 0.6% lower than last year. Net income was flat year-over-year. The company also declared a quarterly cash dividend of $0.1225 per share, which is an increase of 2.1%. The company has now increased its dividend for three straight years.
Management provided an outlook for Fiscal Year (FY) 2023, and they see an EPS growth of 3%-8%. The management team updated its adjusted EPS expectations on a reported basis to $0.77 to $0.81 vs. consensus of $0.81. They also reaffirmed adjusted Free Cash Flow of $1.0 – $1.1 billion..
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: V.F. Corp. (VFC)
- Dividend Yield: 4.4%
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 October, V.F. Corp reported (10/26/22) financial results for the second quarter of fiscal 2023. (V.F. Corp’s fiscal year ends the Saturday closest to March 31st.) Revenue declined by 4% and adjusted earnings-per-share plunged 24%, from $1.11 to $0.73. The decline in EPS was due to high cost inflation, product discounting, and high inventories and lockdowns in China.
V.F. Corp lowered its guidance for revenue growth in fiscal 2023 from 5%-6% to 3%-4% and its guidance for
adjusted earnings-per-share once again, from $2.40-$2.50 to $2.00-$2.20.
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 #5: Realty Income (O)
- Dividend Yield: 4.6%
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.
Source: Investor Presentation
The company’s long history of dividend payments and increases is due to its high-quality business model and diversified property portfolio.
Realty Income announced its third quarter earnings results on November 3. The trust reported that it generated revenues of $840 million during the quarter, which was 71% more than the revenues that Realty Income generated during the previous year’s quarter.
Realty investments into new properties and its acquisition of VEREIT that closed in late 2021 impacted the year-over-year comparison to a large degree. Realty Income’s funds-from-operations rose substantially versus the prior year’s quarter, although AFFO-per-share growth was lower, due to share issuance.
Realty Income nevertheless managed to generate adjusted FFO-per-share of $0.98 during the quarter. Realty Income expects that its results during 2022 will represent a new record, as funds from operations are forecasted to come in at ~$3.90 on a per-share basis during fiscal 2022.
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 #4: International Business Machines (IBM)
- Dividend Yield: 4.9%
IBM is a global information technology company that provides integratedenterprise solutions for software, hardware, and services. IBM’s focus isrunning mission critical systems for large, multi-national customers andgovernments. IBM typically provides end-to-end solutions.
IBM reported results for Q4 2022 and the full year on January 25th, 2023. Company-wide revenue was flat while diluted adjusted earnings per share rose 7% to $3.60 from $3.35 on a year-over-year basis. Diluted GAAP earnings per share increased to $3.13 in the quarter from $2.72 in the prior year on higher margins. Also, IBM’s earnings are being impacted by the strong US dollar causing a 6% headwind.
Revenue for Software increased 3% to $7,288M from $7,087M in comparable quarters due to 10% growth in Hybrid Platform & Solutions and a 3% increase in Transaction Processing. Revenue was up 15% for RedHat, +9% for Automation, +8% for Data & AI, and +10% for Security. Consulting revenue increased 0.5% due to a 7% rise in Business Transformation, 10% growth in Technology Consulting, and 12% growth in Application Operations.
The book-to-bill ratio is a healthy 1.1X. Revenue for Infrastructure was up 2% at $4,483M from $4,414M due to a 11% rise in Hybrid Infrastructure and flat Infrastructure Support. Z Systems had 21% growth. For the year, IBM’s revenue was up 6% to $60.5B and earnings per share rose to $9.13.
Click here to download our most recent Sure Analysis report on IBM (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #3: Leggett & Platt (LEG)
- Dividend Yield: 5.1%
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 Kings as it has 50years of consecutive dividend increases.
Leggett & Platt reported its third quarter earnings results on October 31. Revenue of $1.29 billion represented a 2% decline compared to the prior year’s quarter. Revenues were in-line with the consensus estimate. Earnings-per-share of $0.52 during the third quarter, was a sequential decline from $0.70 per share in the previous quarter.
Management also lowered its revenue guidance for the current fiscal year. The company is forecasting revenues of $5.1 billion to $5.2 billion, implying growth of around 1% versus the previous year. The earnings-per-share guidance range has been set at $2.30 to $2.45 for 2022. This represents a sizeable decline of almost 20% compared to 2021, using the midpoint of the current guidance range of $2.38.
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 #2: Walgreens-Boots Alliance (WBA)
- Dividend Yield: 5.3%
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.
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 5th, 2023, Walgreens reported results for the first quarter of fiscal 2023. Sales dipped -1.5% and adjusted earnings-per-share slumped -31% over the prior year’s quarter, from $1.68 to $1.16, mostly due to high COVID-19 vaccinations in the prior year’s period. Earnings-per-share exceeded analysts’ consensus by $0.02.
The company has beaten analysts’ estimates for 10 consecutive quarters. However, as the pandemic has subsided, Walgreens is facing tough comparisons. It thus reaffirmed its guidance for earnings-per-share of $4.45-$4.65 in fiscal 2023, implying a -10% decrease at the mid-point.
Click here to download our most recent Sure Analysis report on Walgreens Boots Alliance (preview of page 1 of 3 shown below):
High Yield Dividend Aristocrat #1: 3M Company (MMM)
- Dividend Yield: 5.4%
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 95,000employees and serves customers in more than 200 countries.
The company separately announced that it will spinoff its healthcare segment. This is a major announcement, as the healthcare business itself generates over $8 billion in annual sales.
The transaction is expected to close by the end of 2023.
On January 24th, 2023, 3M reported announced earnings results for the fourth quarter and full year for the period ending December 31st, 2022. For the quarter, revenue declined 5.9% to $8.1 billion, but was $10 million more than expected. Adjusted earnings-per-share of $2.28 compared to $2.31 in the prior year and was $0.11 less than projected.
For 2022, revenue decreased 3% to $34.2 billion. Adjusted earnings-per-share for the period totaled $10.10, which compared unfavorably to $10.12 in the previous year and was at the low end of the company’s guidance.
Organic growth for the quarter was 1.2%. Health Care, Transportation & Electronics, and Safety & Industrial grew 1.9%, 1.4%, and 1.3%, respectively. Consumer fell 5.7%. The company will cut 2,500 manufacturing jobs. 3M provided an outlook for 2023, with the company expecting adjusted earnings-per-share in a range of $8.50 to $9.00.
Click here to download our most recent Sure Analysis report on 3M (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 1.5%.
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.
This article was first published by Bob Ciura for Sure Dividend
Sure dividend helps individual investors build high-quality dividend growth portfolios for the long run. The goal is financial freedom through an investment portfolio that pays rising dividend income over time. To this end, Sure Dividend provides a great deal of free information.
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