10 Dividend Aristocrats with Over 3% Yield

Published January 31, 2022 at 5:48 pm EST Updated September 7, 2026 at 1:56 pm EDT

In this article, we discuss 10 dividend aristocrats with over 3% yield.

Dividend aristocrats are S&P 500 constituents which have consistently increased their dividends for at least 25 years.

With the rising inflation globally, dividend stocks offer a unique hedge for investors. It is a good bet to diversify an investment portfolio with quality names that offer sustainable dividend payouts and strong cash flow positions, according to Wharton School’s finance professor, Jeremy Siegel. He described stocks as “real assets” that will be valued even during inflationary periods, and the only inflation-protected crop of stocks will be the dividend payers in the current market.

Siegel stated that inflation will erode the value of money that is just sitting in banks, whereas, treasuries, TIPS, and bonds offer menial returns. He reiterated that dividend paying stocks are the “way to go” in this market.

Dividend Investing Amid Rising Rates

Liz Young, head of investment strategy at SoFi, an American online personal finance company, stated in a CNBC interview on January 25 that investors need to focus on companies that offer strong earnings in the 2022 earnings season, and diversification of stocks is key. She pointed to strong valuations, solid cash flows, and resilient earnings as indicators of stable stocks in the rising inflationary environment. She also stated that markets are overreacting to the Fed’s announcements.

Similarly, Marc Lasry, founder of Avenue Capital Management, suggested that the Fed invested $3 trillion in the economy at the beginning of the COVID-19 pandemic and indulged in quantitative easing. Now, the market has run out of the $3 trillion relief package and the Fed is tightening its money controls. However, Lasry is of the opinion that the Fed will keep a keen eye on the market conditions, and if the rising interest and inflation rates put the market in correction or the US GDP slips, the Fed will once again take charge of the situation. He also believes that investors are overreacting to the impending news regarding elevated rates.

Since the stock market is in a decline, Tom Lee, the managing partner of Fundstrat Global Advisors, advised investors to take the opportunity and buy the dips in 2022.

Since dividend stocks are acknowledged to be strategic hedges against inflation, high yielding dividend aristocrats like Chevron Corporation (NYSE:CVX), International Business Machines Corporation (NYSE:IBM), and Exxon Mobil Corporation (NYSE:XOM) are smart investments heading into 2022.

10 Dividend Aristocrats with Over 3% Yield

Photo by Viacheslav Bublyk on Unsplash

Our Methodology

We used the S&P 500 dividend aristocrats list for 2022 and shortlisted 10 stocks that offer over 3% dividend yield. For additional context on each company, we have mentioned the latest dividend payouts, analyst ratings, and the hedge fund sentiment surrounding the holdings.

Dividend Aristocrats with Over 3% Yield

10. Kimberly-Clark Corporation (NYSE:KMB)

Dividend Yield as of January 25: 3.30%

Number of Hedge Fund Holders: 28

Number of Years of Consecutive Dividend Increases: 49

Kimberly-Clark Corporation (NYSE:KMB) is a Texas-based multinational corporation that manufactures personal care consumer products, which are mostly paper based. As of January 25, Kimberly-Clark Corporation offers a dividend yield of 3.30%.

On November 4, Kimberly-Clark Corporation declared a quarterly dividend of $1.14 per share, in line with previous. The dividend was paid on January 4, to shareholders of record on December 10. Kimberly-Clark Corporation has consistently increased its dividends for 49 years, and has been a notable long-term dividend aristocrat.

JPMorgan analyst Andrea Teixeira on January 13 raised the price target on Kimberly-Clark Corporation to $127 from $122 and kept an Underweight rating on the shares. The analyst expects Q4 “to be the worst from a profitability and sales point of view” with most household and personal care companies likely reporting sales deceleration on a two-year stack. However, she believes the “worst in cost pressures will be behind in Q4”.

Among the hedge funds monitored by Insider Monkey in the third quarter of 2021, 28 funds were bullish on Kimberly-Clark Corporation, down from 37 funds in the preceding quarter. Holocene Advisors is the largest stakeholder of the company, with 945,712 shares worth $125.25 million.

Kimberly-Clark Corporation has a reliable dividend history that has gained the attention of the smart money, just like Chevron Corporation, International Business Machines Corporation, and Exxon Mobil Corporation.

9. 3M Company (NYSE:MMM)

Dividend Yield as of January 25: 3.44%

Number of Hedge Fund Holders: 46

Number of Years of Consecutive Dividend Increases: 63

3M Company (NYSE:MMM) is an American multinational conglomerate that focuses its operations on multiple business segments including safety and industrials, transportation, electronics, health care, and consumer products.

3M Company on November 9 declared a quarterly dividend of $1.48 per share, in line with previous. The dividend was paid on December 12, to shareholders of record on November 19. 3M Company has delivered consecutively increasing dividends for 63 years, and the yield as of January 25 stands at 3.44%.

Bernstein analyst Brendan Luecke initiated coverage of 3M Company with a Market Perform rating and a $175 price target on January 11, citing inflation and PFAS Stewardship. The analyst observed that 3M Company stumbled in 2019 and it still hasn’t recovered. He does “not lose sleep” over its macro-driven topline but is concerned about margins and the company’s ability to deliver operating leverage in the long-term.

On December 14, Neogen Corporation (NASDAQ:NEOG), an American food safety company, and 3M Company announced that they have entered into a definitive agreement where 3M Company will separate its food safety business and simultaneously combine it with Neogen Corporation (NASDAQ:NEOG) in a transaction that is intended to be tax-efficient for 3M Company and its shareholders for U.S. federal income tax purposes.

In 3M Company’s press release on January 25, the company declared a Q4 GAAP EPS of $2.31, beating consensus estimates by $0.29. Revenue for the fourth quarter equaled $8.61 billion, outperforming estimates by $30 million. On a geographic basis, 3M Company’s total sales grew 2.1% in the Americas, but decreased 0.2% in Asia Pacific and 4.5% in Europe, Middle East, and Africa.

Among the hedge funds tracked by Insider Monkey in Q3 2021, AQR Capital Management is one of the leading stakeholders of 3M Company, with 1.3 million shares worth approximately $231 million. Overall, 46 hedge funds were bullish on the stock in the third quarter of 2021.

8. Federal Realty Investment Trust (NYSE:FRT)

Dividend Yield as of January 25: 3.50%

Number of Hedge Fund Holders: 21

Number of Years of Consecutive Dividend Increases: 54

Federal Realty Investment Trust (NYSE:FRT) invests mainly in retail spaces in the Northeastern United States, the Mid-Atlantic states, California, and South Florida.

On August 5, Federal Realty Investment Trust declared a $1.07 quarterly per share dividend, which was paid on October 15, to shareholders of record on September 22. Federal Realty Investment Trust has increased dividends steadily for 54 years back-to-back.

JPMorgan analyst Michael Mueller upgraded Federal Realty Investment Trust on December 20 to Overweight from Neutral with a price target of $142, up from $135. The company could post “outsized” funds from operations growth over the next few years relative to the strip center group, the analyst told investors in a research note.

Federal Realty Investment Trust on December 2 announced its plans to reorganize into an umbrella partnership real estate investment trust, or an UPREIT. Under the UPREIT structure, a new holding company would become the publicly traded company, while Federal Realty Investment Trust will convert into a limited partnership that is controlled by the holding company. This will make it easier for Federal Realty Investment Trust to acquire properties in tax deferred structures without any significant impact to current shareholders, lenders, and other involved parties.

According to Insider Monkey’s Q3 data, Waterfront Capital Partners is the leading stakeholder of Federal Realty Investment Trust, owning 605,515 shares worth $71.4 million. Overall, 21 hedge funds were bullish on the stock in the third quarter of 2021.

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

Dividend Yield as of January 25: 3.76%

Number of Hedge Fund Holders: 37

Number of Years of Consecutive Dividend Increases: 46

Headquartered in Illinois, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a holding company that owns pharmacies, as well as multiple pharmaceutical manufacturing and distribution companies. Walgreens Boots Alliance, Inc. is a notable dividend aristocrat, offering a rich dividend history of 46 consecutive dividend increases.

Walgreens Boots Alliance, Inc. on October 20 declared a $0.4775 per share quarterly dividend, in line with previous. The dividend was paid on December 10, to shareholders of record on November 15.

Walgreens Boots Alliance, Inc. announced its fourth quarter results for 2021 on January 6, posting earnings per share of $1.68, exceeding estimates by $0.34. Revenue for the period equaled $33.90 billion, beating estimates by $946.75 million.

Citing an increased outlook of COVID-19 testing and vaccine benefits, Mizuho analyst Ann Hynes on January 10 raised the price target on Walgreens Boots Alliance, Inc. to $56 from $51 and kept a Neutral rating on the shares.

In the third quarter of 2021, Stephen Dubois’ Camber Capital Management, the largest stakeholder of the company, held 4 million shares of Walgreens Boots Alliance, Inc., worth $188.2 million. Overall, 37 hedge funds were bullish on the stock in Q3 2021.

Here is what Miller Howard Investments has to say about Walgreens Boots Alliance, Inc. in its Q3 2021 investor letter:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”

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

Dividend Yield as of January 25: 3.85%

Number of Hedge Fund Holders: 24

Number of Years of Consecutive Dividend Increases: 47

Consolidated Edison, Inc. (NYSE:ED) is an American energy company that supplies electricity and gas throughout the New York metropolitan area. Consolidated Edison, Inc. has consecutively raised its dividends for 47 years, making it a reliable dividend aristocrat.

Consolidated Edison, Inc. on January 20 declared a $0.79 per share quarterly dividend, which is a 1.9% increase from its prior dividend of $0.78. The dividend will be paid on March 15, to shareholders of record on February 16.

On December 22, RBC Capital analyst Shelby Tucker raised the price target on Consolidated Edison, Inc. to $85 from $78 but kept a Sector Perform rating on the shares. The analyst told investors that Consolidated Edison, Inc. has the potential to capitalize on significant investment opportunities since the state has “ambitious” clean energy goals, but the regulatory environment in New York is not ideal.

Electron Capital Partners is the biggest Consolidated Edison, Inc. stakeholder as of Q3 2021, owning 1.35 million shares worth $98.4 million. Overall, 24 hedge funds were long Consolidated Edison, Inc. in the third quarter, down from 30 funds in the prior quarter.

Chevron Corporation, International Business Machines Corporation, and Exxon Mobil Corporation have been offering investors consistent dividend increases for over 25 years, just like Consolidated Edison, Inc..

5. Cardinal Health, Inc. (NYSE:CAH)

Dividend Yield as of January 25: 3.94%

Number of Hedge Fund Holders: 36

Number of Years of Consecutive Dividend Increases: 34

Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare company that distributes pharmaceutical, medical, and surgical products. Cardinal Health, Inc. offers its products to a majority of the United States hospitals.

On November 4, Cardinal Health, Inc. declared a $0.4908 per share quarterly dividend, in line with previous. The dividend was paid on January 15, to shareholders of record on January 3.

Barclays analyst Steve Valiquette lowered the price target on Cardinal Health, Inc. to $63 from $65 and kept an Overweight rating on the shares on January 11. The analyst remains positive on the healthcare distribution subsector in 2022 given the upside potential from generic/biosimilar pipelines, additional anticipated COVID-19 tailwinds, and waning risks from other variables previously perceived as overhangs, such as generic pricing volatility and opioid litigation.

Among the hedge funds tracked by Insider Monkey in Q3 2021, Pzena Investment Management is the leading Cardinal Health, Inc. stakeholder, with a $146.2 million position. Overall, 36 hedge funds were long Cardinal Health, Inc. in the third quarter of 2021.

4. Chevron Corporation (NYSE:CVX)

Dividend Yield as of January 25: 4.07%

Number of Hedge Fund Holders: 51

Number of Years of Consecutive Dividend Increases: 34

Chevron Corporation has consistently increased its dividend payouts for 34 years. Chevron Corporation is a California-based multinational energy corporation that supplies gasoline, natural gas, oil, and other petrochemicals.

On October 27, Chevron Corporation declared a $1.34 per share quarterly dividend, in line with previous. The dividend was paid on December 10, to shareholders of record on November 18.

Truist analyst Neal Dingmann on January 14 kept a Buy rating on Chevron Corporation, elevating the price target to $167 from $150. The analyst noted that oil-weighted exploration and production names warrant higher price targets as he increased his 2022 oil price estimates by approximately 10% and 2023 estimates by roughly 8%.

Ric Dillon’s Diamond Hill Capital is the leading stakeholder of Chevron Corporation, owning 5.1 million shares worth $523.8 million. The Q3 data of Insider Monkey reported that 51 hedge funds were bullish on Chevron Corporation, with stakes equaling $4.4 billion.

Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation in its Q3 2021 investor letter:

“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.

What should Chevron expect?

It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”

3. Leggett & Platt, Incorporated (NYSE:LEG)

Dividend Yield as of January 25: 4.14%

Number of Hedge Fund Holders: 16

Number of Years of Consecutive Dividend Increases: 50

Leggett & Platt, Incorporated is a Missouri-based maker of bedding, furniture, flooring, and textiles, supplying its products to retailers, department stores, and home improvement brands. According to Insider Monkey’s Q3 database, 16 hedge funds were bullish on Leggett & Platt, Incorporated, with stakes totaling $56.1 million.

Leggett & Platt, Incorporated declared on November 9 a $0.42 per share quarterly dividend, which is a 5% increase from its prior dividend of $0.40, paid on January 14, to shareholders of record on December 15. Leggett & Platt, Incorporated has elevated its dividends for 50 years consecutively, and the stock offers a 4.14% yield as of January 25.

Balyasny Asset Management is the largest Leggett & Platt, Incorporated shareholder, with a $10.3 million position in the company as of Q3.

2. Exxon Mobil Corporation (NYSE:XOM)

Dividend Yield as of January 25: 4.69%

Number of Hedge Fund Holders: 64

Number of Years of Consecutive Dividend Increases: 39

An American multinational oil and gas company, Exxon Mobil Corporation is a notable descendant of Rockefeller’s Standard Oil. Headquartered in Irving, Texas, Exxon Mobil Corporation specializes in crude oil, oil products, natural gas, petrochemicals, and power generation. Exxon Mobil Corporation announced its ambition for net zero greenhouse gas emissions by 2050 on January 18.

On October 27, Exxon Mobil Corporation declared a $0.88 per share quarterly dividend, which is a 1.1% increase from its prior dividend of $0.87. The dividend was distributed on December 10, to shareholders of record on November 12.

Offering a dividend yield of 4.59% as of January 25, Exxon Mobil Corporation has consecutively raised its dividends for 39 years, making it a notable dividend aristocrat to invest in.

RBC Capital analyst Biraj Borkhataria on January 19 upgraded Exxon Mobil Corporation to Sector Perform from Underperform with a price target of $90, up from $70. The analyst has been concerned with Exxon Mobil Corporation’s position in the investment cycle relative to its peers, but now he believes that the overall tailwinds for the sector are likely to outweigh company specific factors in 2022.

GQG Partners is the largest Exxon Mobil Corporation stakeholder, with 26.5 million shares worth $1.56 billion. In the third quarter of 2021, 64 hedge funds tracked by Insider Monkey were bullish on Exxon Mobil Corporation, down from 68 funds in the preceding quarter.

Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation in its Q2 2021 investor letter:

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”

1. International Business Machines Corporation (NYSE:IBM)

Dividend Yield as of January 25: 4.80%

Number of Hedge Fund Holders: 41

Number of Years of Consecutive Dividend Increases: 26

International Business Machines Corporation, a multinational technology corporation, is one of the most notable dividend aristocrats. International Business Machines Corporation has boosted its dividend payouts consecutively for 26 years.

On October 26, International Business Machines Corporation declared a $1.64 per share quarterly dividend, in line with previous, which was paid on December 10.

Evercore ISI analyst Amit Daryanani on January 25 said that International Business Machines Corporation reported “impressive” December quarter revenue and EPS that beat Street consensus, highlighted by about 5% growth in constant currency across both consulting and software. The analyst kept an In Line rating and a $140 price target on the International Business Machines Corporation stock.

Among the hedge funds tracked by Insider Monkey in Q3 2021, 41 funds reported owning stakes in International Business Machines Corporation, equaling $1.40 billion. Arrowstreet Capital is one of the largest International Business Machines Corporation stakeholders, with 2.8 million shares worth $398.1 million.

Here is what St. James Investment Company has to say about International Business Machines Corporation in its Q4 2021 investor letter:

“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.

One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of

time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (Click here to see the full text)

You can also take a look at 9 Stocks That Credit Markets Expert Steve Ketchum Likes and 10 Stocks to Sell According to Billionaire Daniel Sundheim.

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