7 Dividend Aristocrats Offering High-Yield Returns

Core Insights - The article focuses on seven prominent companies recognized as Dividend Aristocrats, highlighting their potential returns, income reliability, and sustainability in financial markets [1][2]. Company Summaries Amcor (AMCR) - Amcor leads in packaging solutions with a forward dividend yield of 4.9% and has shown a 1% annual increase in adjusted EPS to $0.178 in Q3 fiscal 2024 [3][4]. - The company reported an adjusted EBIT of $397 million, a 4% increase on a comparable constant currency basis, indicating effective cost management [4]. - Amcor's adjusted free cash flow (FCF) is projected between $850 million and $950 million for fiscal 2024, with a year-to-date increase in FCF by $100 million [4]. Realty Income (O) - Realty Income is a REIT with a forward dividend yield of 5.61%, investing $598 million across retail, industrial, and data centers in Q1 2024 [6][7]. - Over half of the investment volume, $323 million, was allocated in Europe and the U.K. at an 8.2% initial weighted average cash yield [6]. - The portfolio includes over 1,500 clients across multiple countries, with no individual client exceeding 1% of total portfolio annualized rent, mitigating tenant default risk [7]. AT&T (T) - AT&T, a telecommunications giant, offers a forward dividend yield of 5.91% and added 349,000 postpaid phone net subscribers in Q1 2024, totaling 71.6 million [8][9]. - The fiber segment has expanded significantly, passing 2.4 million new locations, increasing the total to over 27 million [9]. - The consumer base for AT&T fiber grew by about 1.1 million to nearly 8.6 million customers, indicating strong subscriber growth [9]. Chevron (CVX) - Chevron, the largest U.S.-integrated energy company, has a forward dividend yield of 4.1% and reported adjusted earnings exceeding $5 billion in Q1 2024 [10][11]. - The company achieved a 35% increase in U.S. output, significantly driven by organic expansion in the Permian Basin [11]. - Chevron returned over $5 billion in cash during Q1 2024, demonstrating effective earnings allocation [12]. ExxonMobil (XOM) - ExxonMobil, another major U.S.-integrated energy company, has a forward dividend yield of 3.3% and generated $8.2 billion in profits in Q1 2024 [13][14]. - The company plans to invest between $23 and $25 billion by 2024, aiming for increased cash flow and profitability [14]. - ExxonMobil's net debt-to-capital ratio has decreased to 3%, the lowest in over 10 years, and it paid out $6.8 billion in dividends [14]. Altria (MO) - Altria, a leading tobacco company, offers an 8.2% forward dividend yield and reported adjusted operating companies' income exceeding $2.4 billion [15][16]. - Marlboro holds a 42% retail share in the cigarette market, with a 0.7 percentage point increase in the premium market [16]. - The company has expanded NJOY's distribution to over 80,000 locations, with plans to reach 100,000 by year-end [16]. T. Rowe Price (TROW) - T. Rowe Price, offering mutual funds and investment services, generated $1.54 trillion in assets under management (AUM) as of Q1 2024, a 12% rise from the previous year [17][18]. - The firm holds $676 billion, or 65%, of retirement assets in U.S.-defined contribution plans, showcasing its strong market position [18]. - T. Rowe Price's stock delivers a forward yield of 4.1%, supported by high AUM growth [18].