10 Best Dividend Aristocrats with Over 4% Yield

Published July 27, 2021 at 7:35 pm EDT Updated September 7, 2026 at 1:31 pm EDT

In this article, we will be looking at the 10 best dividend aristocrats with over 4% yield.

According to data from a book called Active Value Investing: Making Money in Range-bound Markets, by Vitaliy Katsenelson, dividends not only contribute significantly to investor income but also to the overall market’s total return when studied over longer time periods. For instance, between 1900 and 2000, the S&P 500’s total return was about 10.4%, of which about 5.5% was made up entirely by returns from dividends. Hence, dividends and dividend stocks are some of the most vital components of the stock market. As such, these stocks, like Medtronic plc (NYSE: MDT), AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and AbbVie Inc. (NYSE: ABBV), have proven to be popular investment options among investors, especially income investors. And with the growing popularity of dividend investing, more focus is being shifted towards dividend stocks that offer safer incomes and returns because of their reliable and impressive track records of dividend growth. Case in point: the dividend aristocrats.

What are Dividend Aristocrats?

Any S&P 500 company that has consistently increased its dividend yield for 25 years or more makes the cut to be considered a dividend aristocrat. The stocks on the dividend aristocrats list are among the most stable and reliable dividend investment options out there.

According to Post Oak Private Wealth Advisors in a report on dividend investing, any good dividend investment strategy will take into account a range of factors that impact dividend stock performance and would then approach buying or selling these stocks on the basis of certain rules. The first of these rules is that investors must look first to invest in stocks that have a record of dividend growth for at least 25 years. In quantifying the importance of this claim, the report mentioned that the S&P Dividend Aristocrats Index has managed to consistently outperform the S&P 500 Index between 2006 and 2015 by almost 3% each year. The second rule laid down by the report was that investors should consider investing in higher-yielding stocks as compared to lower-yielding stocks. For this claim as well, data presented showed that between 1928 and 2003, stocks with higher dividend yields managed to outperform stocks with lower yields by about 1.7% each year.

Keeping the above in mind, we have compiled a list of the best dividend aristocrats with a yield of 4% or over. This is to remain in line with Post Oak Private Wealth Advisors’ assertion that dividend stocks with stable dividend growth for at least 25 years and with higher yields than others in their category are prone to outperform the market at large.

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s now look at the 10 best dividend aristocrats with over 4% yield.

We have tracked the data of 866 hedge funds here at Insider Monkey and analyzed it to pick those stocks that are most popular among hedge funds today. We also took into account each stock’s analyst ratings and fundamentals as an indicator of financial health and growth potential. Finally, we made sure that each stock added to our list below had a dividend yield of at least 4%, and ranked them from the lowest to the highest dividend yield.

We have also mentioned the number of hedge fund holders, the dividend yield, and the number of years of dividend increases for each stock.

Best Dividend Aristocrats with Over 4% Yield

10. Walgreens Boots Alliance, Inc. (NASDAQ: WBA)

Number of Hedge Fund Holders: 41
Dividend Yield: 4.04%
Number of Years of Consistent Dividend Growth: 46

Walgreens Boots Alliance, Inc. (NASDAQ: WBA), a drug retail company, operates through its Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale segments. The company provides health and beauty products and ranks 10th on our list of the best dividend aristocrats with over 4% yield.

Baird’s Eric Coldwell holds an Outperform rating on Walgreens Boots Alliance, Inc. shares, while Barclays analyst Steve Valiquette holds an Equal Weight rating on the stock.

In the fiscal third quarter of 2021, Walgreens Boots Alliance, Inc. had an EPS of $1.38, beating estimates by $0.23. The company’s revenue was $34.03 billion, also beating estimates by $526,60 million. Walgreens Boots Alliance, Inc. has also gained 14.13% year to date and 18.6% in the past year.

By the end of the first quarter of 2021, 41 hedge funds out of the 866 tracked by Insider Monkey held stakes in Walgreens Boots Alliance, Inc. worth roughly $1.13 billion. This is compared to 36 hedge funds in the previous quarter with a total stake value of approximately $609 million.

Like Medtronic plc (NYSE: MDT), AT&T Inc., Exxon Mobil Corporation, and AbbVie Inc., Walgreens Boots Alliance, Inc. is a good dividend stock to invest in.

Ariel Investments, an investment management firm, mentioned Walgreens Boots Alliance, Inc. in its fourth-quarter 2020 investor letter. Here’s what they said:

“Walgreens Boots Alliance, Inc. has been essentially flat during our brief holding period. We have successfully owned Walgreens in the past. Recently, its share price has been pressured on concerns that Amazon may enter the prescription drug distribution business. As recently as 2015, Walgreens was a market favorite, trading at more than 20 times forward earnings. The company was expected to grow in good times and bad. Walgreens’ new clinics, designed to treat day-to-day healthcare needs such as flu shots and children’s ear infections, could be part of the solution for expensive emergency room overcrowding. Finally, trends toward generic pharmaceutics that began in 2015 are still considered a positive, as pharmacies have more influence in directing customers toward particular generics than with a patient seeking a patented drug prescribed by a doctor. Walgreens will face new competition going forward, but with its current depressed valuation, we believe the threats are more than discounted in an attractive stock price.”

9. Amcor plc (NYSE: AMCR)

Number of Hedge Fund Holders: 17
Dividend Yield: 4.07%
Number of Years of Consistent Dividend Growth: 38

Amcor plc (NYSE: AMCR), a paper packaging company, develops and sells a range of packaging products for food, beverage, medical, and other industries across the world. The company ranks 9th on our list of the best dividend aristocrats with over 4% yield.

Macquarie’s John Purtell just this July upgraded Amcor plc (NYSE: AMCR) shares from Neutral to Outperform. Purtell also has a $12.17 price target on the shares.

In the fiscal third quarter of 2021, Amcor plc (NYSE: AMCR) had an EPS of $0.18, beating estimates by $0.01. The company’s revenue was $3.21 billion, up 2.10% year over year and crossing the previous quarter’s revenue of $3.10 billion. Amcor plc (NYSE: AMCR) has also gained 3.89% in the past 6 months and 0.97% year to date.

By the end of the first quarter of 2021, 17 hedge funds out of the 866 tracked by Insider Monkey held stakes in Amcor plc (NYSE: AMCR) worth roughly $226 million. This is compared to 19 hedge funds in the previous quarter with a total stake value of approximately $247 million.

Like Medtronic plc (NYSE: MDT), AT&T Inc., Exxon Mobil Corporation, and AbbVie Inc., Amcor plc (NYSE: AMCR) is a good dividend stock to invest in.

8. Consolidated Edison, Inc. (NYSE: ED)

Number of Hedge Fund Holders: 22
Dividend Yield: 4.19%
Number of Years of Consistent Dividend Growth: 47

Consolidated Edison, Inc. (NYSE: ED) is a utility company that operates as part of the regulated electric, gas, and steam delivery businesses in the US. It serves about 3.5 million customers in New York and Westchester County alone, providing electric services. The company also serves other consumers across the US providing gas and steam and ranks 8th on our list of the best dividend aristocrats with over 4% yield.

Anthony Crowdell, an analyst at Mizuho, raised his price target on Consolidated Edison, Inc. shares just this June. The new price target is $78, versus the previous target of $68, and Crowdell has also kept his Neutral rating on the company’s shares.

In the first quarter of 2021, Consolidated Edison, Inc. had an EPS of $1.44, beating estimates by $0.08. The company’s revenue was $3.68 billion, up 13.70% year over year and beating estimates by $236.96 million. Consolidated Edison, Inc. has also gained 3.38% in the past 6 months and 4.67% year to date.

By the end of the first quarter of 2021, 22 hedge funds out of the 866 tracked by Insider Monkey held stakes in Consolidated Edison, Inc. worth roughly $196 million. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $393 million.

Like Medtronic plc (NYSE: MDT), AT&T Inc., Exxon Mobil Corporation, and AbbVie Inc., Consolidated Edison, Inc. is a good dividend stock to invest in.

7. Realty Income Corporation (NYSE: O)

Number of Hedge Fund Holders: 18
Dividend Yield: 4.2%
Number of Years of Consistent Dividend Growth: 26

Realty Income Corporation (NYSE: O) is also referred to as the Monthly Dividend Company. It is an S&P 500 company that works to provide stockholders a reliable monthly income, with its monthly dividends being uplifted by around 6,500 real estate properties that provide its cash flow. The company ranks 7th on our list of the best dividend aristocrats with over 4% yield.

Analyst Andrew Rosivach from Wolfe Research began covering Realty Income Corporation shares this June with a Peer Perform rating and a $79 price target.

In the first quarter of 2021, Realty Income Corporation had an EPS of $0.72, missing estimates by $0.02. The company’s revenue was $417.69 million, up 6.61% year over year and beating estimates by $1.61 million. Realty Income Corporation has also gained 17.06% in the past 6 months and 18.04% year to date.

By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Realty Income Corporation worth roughly $183 million. This is compared to 24 hedge funds in the previous quarter with a total stake value of approximately $238 million.

Like Medtronic plc (NYSE: MDT), AT&T Inc., Exxon Mobil Corporation, and AbbVie Inc., Realty Income Corporation is a good dividend stock to invest in.

6. AbbVie Inc. (NYSE: ABBV)

Number of Hedge Fund Holders: 72
Dividend Yield: 4.41%
Number of Years of Consistent Dividend Growth: 49

AbbVie Inc., a biotech company, discovers and manufactures pharmaceuticals for sale across the globe. The company is based in North Chicago and ranks 6th on our list of the best dividend aristocrats with over 4% yield.

Robyn Karnauskas, an analyst over at Truist, just this July took over coverage of AbbVie Inc. shares with a Buy rating and a $118 price target.

In the first quarter of 2021, AbbVie Inc. had an EPS of $2.95, beating estimates by $0.12. The company’s revenue was $12.94 billion, up 50.08% year over year and beating estimates by $160.24 million. AbbVie Inc. has also gained 14.59% in the past 6 months and 11.74% year to date.

By the end of the first quarter of 2021, 72 hedge funds out of the 866 tracked by Insider Monkey held stakes in AbbVie Inc. worth roughly $5.91 billion. This is compared to 83 hedge funds in the previous quarter with a total stake value of approximately $6.96 billion.

Like Medtronic plc (NYSE: MDT), AT&T Inc., and Exxon Mobil Corporation, AbbVie Inc. is a good dividend stock to invest in.

5. International Business Machines Corporation (NYSE: IBM)

Number of Hedge Fund Holders: 41
Dividend Yield: 4.59%
Number of Years of Consistent Dividend Growth: 26

International Business Machines Corporation (NYSE: IBM) is an information technology company that offers integrated solutions and services across the globe. The company ranks 5th on our list of the best dividend aristocrats with over 4% yield.

Katy Huberty from Morgan Stanley raised her price target on International Business Machines Corporation just this July, retaining her Equal Weight rating on the shares as well.

In the second quarter of 2021, International Business Machines Corporation had an EPS of $2.33, beating estimates by $0.04. The company’s revenue was $18.75 billion, up 3.43% year over year and beating estimates by $447.50 million. International Business Machines Corporation has also gained 16.58% in the past 6 months and 15.19% year to date.

By the end of the first quarter of 2021, 41 hedge funds out of the 866 tracked by Insider Monkey held stakes in International Business Machines Corporation worth roughly $1.35 billion. This is compared to 51 hedge funds in the previous quarter with a total stake value of approximately $998 million.

4. People’s United Financial, Inc. (NASDAQ: PBCT)

Number of Hedge Fund Holders: 20
Dividend Yield: 4.65%
Number of Years of Consistent Dividend Growth: 29

People’s United Financial, Inc., the bank holding company for People’s United Bank, National Association, offers commercial banking, retail banking, and wealth management services to customers. The company ranks 4th on our list of the best dividend aristocrats with over 4% yield.

David Rochester, an analyst at Compass Point, raised his price target on People’s United Financial, Inc. shares this May. The new price target is $19.50, up $1 from the price target of $18.50. Rochester has also retained his Neutral rating on the company’s shares.

In the second quarter of 2021, People’s United Financial, Inc. had an EPS of $0.41, beating estimates by $0.08. The company’s revenue was $479.90, but missing estimates by $17.70 million. People’s United Financial, Inc. has also gained 11.19% in the past 6 months and 21.99% year to date.

By the end of the first quarter of 2021, 20 hedge funds out of the 866 tracked by Insider Monkey held stakes in People’s United Financial, Inc. worth roughly $208 million. This is compared to 29 hedge funds in the previous quarter with a total stake value of approximately $122 million.

3. Chevron Corporation (NYSE: CVX)

Number of Hedge Fund Holders: 41
Dividend Yield: 5.31%
Number of Years of Consistent Dividend Growth: 34

Chevron Corporation (NYSE: CVX), an energy company, ranks 3rd on our list of the best dividend aristocrats with over 4% yield. The company works in integrated energy, chemicals, and petroleum operations across the world.

Ryan Todd from Piper Sandler raised his price target on Chevron Corporation shares in July from $126 to $137 alongside reiterating his Overweight rating on the stock.

In the first quarter of 2021, Chevron Corporation had an EPS of $0.90, surpassing the previous quarter’s -$0.01 EPS. The company’s revenue was $32.03 billion, up 1.68% year over year and also crossing the previous quarter’s $25.25 billion revenue. Chevron Corporation has also gained 14.46% in the past 6 months and 19.17% year to date.

By the end of the first quarter of 2021, 41 hedge funds out of the 866 tracked by Insider Monkey held stakes in Chevron Corporation worth roughly $4.86 billion. This is compared to 50 hedge funds in the previous quarter with a total stake value of approximately $5.39 billion.

2. Exxon Mobil Corporation (NYSE: XOM)

Number of Hedge Fund Holders: 65
Dividend Yield: 5.95%
Number of Years of Consistent Dividend Growth: 38

Exxon Mobil Corporation, another energy company, ranks 2nd on our list of the best dividend aristocrats with over 4% yield. The company had about 22,239 net-operated wells with proved reserves as of December 2020 and is based in Texas to explore and produce crude oil and natural gas in the US and across the globe.

Ryan Todd from Piper Sandler also raised his price target on Exxon Mobil Corporation to $69 this July. Todd has a Neutral rating on the company’s shares.

In the first quarter of 2021, Exxon Mobil Corporation had an EPS of $0.65, beating estimates by $0.05. The company’s revenue was $59.15 billion, up 5.32% year over year and beating estimates by $2.89 billion. Exxon Mobil Corporation has also gained 28.95% in the past 6 months and 40.92% year to date.

By the end of the first quarter of 2021, 65 hedge funds out of the 866 tracked by Insider Monkey held stakes in Exxon Mobil Corporation worth roughly $2.77 billion. This is compared to hedge 63 funds in the previous quarter with a total stake value of approximately $2.21 billion.

1. AT&T Inc. (NYSE: T)

Number of Hedge Fund Holders: 63
Dividend Yield: 7.38%
Number of Years of Consistent Dividend Growth: 36

AT&T Inc., a communication services company, provides a range of integrated telecommunication services across the globe and ranks 1st on our list of the best dividend aristocrats with over 4% yield.

Bryan Kraft, an analyst at Deutsche Bank, raised his price target on AT&T Inc. shares to $37 from $34 just this July. Kraft has retained his Buy rating on the stock as well, citing AT&T Inc.’s (NYSE: T) positive Q2 results while raising the price target.

In the second quarter of 2021, AT&T Inc. had an EPS of $0.89, beating estimates by $0.09. The company’s revenue was $44.05 billion, up 7.56% year over year and beating estimates by $1.32 billion.

By the end of the first quarter of 2021, 63 hedge funds out of the 866 tracked by Insider Monkey held stakes in AT&T Inc. worth roughly $2.70 billion. This is compared to 58 hedge funds in the previous quarter with a total stake value of approximately $1.04 billion.

You can also take a look at 10 Best Dividend Champions to Buy Now and 10 Best Dividend Aristocrats to Buy According to Hedge Funds.

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