Amcor(US:AMCR) Investor Placeยท2024-06-26 16:00Core Viewpoint - The article emphasizes the importance of passive income through high-yielding Dividend Aristocrats, which are companies in the S&P 500 that have consistently increased their dividends for at least 25 years [1]. Group 1: Dividend Aristocrats Overview - To qualify as a Dividend Aristocrat, a company must have a float-adjusted market cap of $3 billion, an average daily volume of $5 million over the last three months, and positive earnings growth [1]. - This stringent criteria narrows down the list to some of the most attractive companies in the market [1]. Group 2: Amcor (AMCR) - Amcor operates in two main segments: Flexibles (packaging for beverages, medical, personal care, and food) and Rigid Packaging (containers for beverages and dressings) [3]. - The company reported flat revenue year-over-year, but earnings per share increased from 53 cents to 70 cents, reflecting a 32% growth [4]. - Amcor's forward annual dividend rate is 50 cents, translating to a 5% yield, justifying its inclusion among the highest-yielding Dividend Aristocrats [4]. Group 3: T. Rowe Price Group (TROW) - T. Rowe Price is a global asset management company that offers a wide range of investments and financial services [5]. - The company faced challenges due to a high interest rate environment but still improved earnings by 16%, with EPS rising from $6.73 to $7.78 [6]. - T. Rowe Price pays a forward dividend rate of $4.96, reflecting a 4.2% yield, making it an attractive option for investors [6]. Group 4: International Business Machines (IBM) - IBM has a 30-year record of dividend increases and operates in four key segments: Software, Infrastructure, Consulting, and Financing [7]. - The company reported a 2% revenue increase in 2023, driven by growth in software and consulting, with diluted EPS increasing by 13% [8]. - IBM's forward dividend rate is $6.68, translating to a 3.8% yield, positioning it as a strong candidate among high-yield Dividend Aristocrats [8].