The Dividend Aristocrats are widely known for their dividend growth and safety. The Dividend Aristocrats are a group of 66 stocks in the S&P 500 Index with 25+ consecutive years of dividend increases.

The Dividend Aristocrats as a whole, have an average dividend yield of 2.1%. While this is markedly better than the S&P 500 Index, which yields 1.3% on average, investors can further screen the Dividend Aristocrats to focus on high-yield Dividend Aristocrats.

The following 3 Dividend Aristocrats have dividend yields above 3%, with annual dividend increases.

T. Rowe Price (TROW)

T. Rowe Price is a giant in the asset management industry. It provides a wide range of financial products and services, including mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries. T. Rowe Price ended 2021 with $1.69 trillion in assets under management.

The company performed very well last year. Net revenue was up 13% year-over-year to $1.962 billion, while adjusted earnings-per-share of $3.17 rose 10%. For the full year, T. Rowe Price generated $7.672 billion in net revenue, up 24%. Adjusted earnings-per-share increased 33% year-over-year.

Asset managers like T. Rowe have low variable costs. As a result, higher revenues, driven primarily by increasing assets under management, allow for margin expansion and attractive earnings growth rates.

T. Rowe Price has increased its dividend for 35 consecutive years, and the stock yields 3.3%. With a 2022 projected dividend payout ratio of 32%, the company has plenty of room to continue increasing dividends.

Walgreens Boots Alliance (WBA)

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 $46 billion market cap company has a presence in more than 9 countries, employs more than 315,000 people and has more than 13,000 stores in the U.S., Europe and Latin America.

Walgreens has increased its dividend for 46 consecutive years. Shares currently yield 4.2%.

The company performed relatively well over the past two years, as the coronavirus pandemic drove higher demand for healthcare products and prescriptions. In the most recent fiscal quarter, 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 earnings-per-share grew 53%, from $1.10 to $1.68, and exceeded analysts’ consensus by $0.34. Thanks to markedly strong results and sustained business momentum, Walgreens raised its guidance for its annual earnings-per-share.

The company has a payout ratio of just 36% for fiscal 2022. This means Walgreens should continue to increase its dividend each year.

The Clorox Company (CLX)

Clorox has increased its dividend for over 40 years, and shares currently yield 3.1%. Clorox is a consumer staples stock with a leading position across multiple categories. Just a few of Clorox’s core brands include Clorox bleach and cleaning products, Pine-Sol, Liquid-Plumr, Fresh Step, Glad, Kingsford, Hidden Valley, Brita, Burt’s Bees, RenewLife, and more. Its core cleaning product portfolio should hardly see sales decline at all—and perhaps sales will even increase—during the coronavirus crisis.

These are the products consumers will likely purchase more of during the lockdowns currently taking place across major U.S. cities, in an attempt to stem the outbreak of coronavirus. And, sales of these products will likely continue to hold up even in a prolonged recession, due to the simple fact that people will always need to clean their homes, regardless of the economic climate.

Clorox’s strong brands are a unique competitive advantage that should lead to continued growth for many years, even in a recession. According to the company, more than 80% of its revenue comes from products that are #1 or #2 in their respective categories. These strong brands enjoy steady demand from year to year, even when the economy is in recession, and also provide Clorox with the ability to increase prices on a regular basis.

Final Thoughts

Volatility has returned to the stock market in recent weeks, driven by geopolitical tension and the prospect of rising interest rates. In times of heightened market volatility, the Dividend Aristocrats remain a source of stable dividend stocks.

Even better, investors can focus on high-yield Dividend Aristocrats to generate even more income. T. Rowe Price, Walgreens Boots Alliance, and Clorox have yields above 3%, in addition to their steady dividend growth.
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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul University, and an MBA with a concentration in Investments from the University of Notre Dame.