In this article, we discuss 5 best dividend aristocrats with over 3% yield. If you want to read our detailed analysis of the past performance of dividend aristocrats, go directly to read 11 Best Dividend Aristocrats With Over 3% Yield.
5. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of October 16: 4.18%
Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturing company that mainly specializes in industrial tools and is also a provider of security products.
Stanley Black & Decker, Inc. (NYSE:SWK) has a strong dividend history, as the company has been making consistent dividend payments for the past 146 years. In addition to this, it has raised its dividend every year since 1968, coming through as one of the best dividend stocks. The company’s dividend payments will remain stable as it expects to generate $1.0 billion to $1.5 billion in free cash flow in the second half of 2022. As of October 16, the stock’s dividend yield came to be 4.18%.
In October, Barclays maintained an Overweight rating on Stanley Black & Decker, Inc. (NYSE:SWK) with a $118 price target, highlighting the company’s Tools and Outdoor segment’s performance.
At the end of Q2 2022, 32 hedge funds in Insider Monkey’s database owned stakes in Stanley Black & Decker, Inc. (NYSE:SWK), compared with 38 a quarter earlier. The collective value of these stakes is roughly $497 million. Among these hedge funds, Greenhaven Associates was the company’s leading stakeholder in Q2.
4. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of October 16: 4.84%
Federal Realty Investment Trust (NYSE:FRT) is a Maryland-based real estate investment trust company that mainly invests in shopping centers and related properties. On August 4, the company declared a 1% growth in its dividend, which represented its 55th consecutive year of dividend growth. The company holds the longest record of raising consecutive dividends in the REIT sector, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $1.08 per share and has a dividend yield of 4.84%, as of October 16.
In the second quarter of 2022, Federal Realty Investment Trust (NYSE:FRT) reported an operating cash flow of $157.4 million, up from $118.8 million during the same period last year. The company’s free cash flow came in at $48 million. It ended the first half of the year with $176.5 million in cash and cash equivalents, compared with $162 million a year ago.
In August, BofA upgraded Federal Realty Investment Trust (NYSE:FRT) to Buy and also raised the stock’s price target to $130. The firm mentioned that the company is expected to show growth as the Covid-related hindrances are removed.
As of the close of Q2 2022, 24 hedge funds tracked by Insider Monkey owned stakes in Federal Realty Investment Trust (NYSE:FRT), up from 23 in the previous quarter. These stakes have a consolidated value of nearly $200 million.
3. International Business Machines Corporation (NYSE:IBM)
Dividend Yield as of October 16: 5.50%
International Business Machines Corporation (NYSE:IBM) is an American multinational technology company that manufactures and sells system hardware and software to its consumers. On October 6, President Joe Biden announced to support the company’s $20 billion worth of investments across the Hudson Valley region over the next decade. This investment will mainly deal with the development and manufacturing of semiconductors, artificial intelligence, and quantum computing.
International Business Machines Corporation (NYSE:IBM) has paid consecutive quarterly dividends since 1916. The company holds a 27-year track record of consistent dividend growth, which places it as one of the best dividend stocks on our list. In Q2 2022, the company generated enough cash to support its dividend payments worth $1.5 billion. The stock’s dividend yield stood at 5.50%, as recorded on October 16.
In October, Morgan Stanley reiterated its Overweight rating on International Business Machines Corporation (NYSE:IBM) with a $152 price target, appreciating the company’s solid revenue growth over the years. The firm also expects the company’s Q3 total constant currency revenue growth of 3.5% year-over-year.
At the end of June 2022, 40 hedge funds in Insider Monkey’s database owned stakes in International Business Machines Corporation (NYSE:IBM), down from 43 in the previous quarter. These stakes have a total value of over $948.3 million. Citadel Investment Group owned the largest position in the company in Q2.
2. Leggett & Platt, Incorporated (NYSE:LEG)
Dividend Yield as of October 16: 5.52%
Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturer of various engineered components that are mainly found in homes and automobiles. The company is one of the best dividend stocks on our list as it reported a strong cash position in Q2 2022. It posted an operating cash flow of $90 million, up from $50.1 million in the prior-year quarter. The company’s free cash flow for the quarter stood at $67.7 million, compared with $23.3 million during the same period last year. For FY22, the company expects to pay $230 million in dividends to shareholders.
Leggett & Platt, Incorporated (NYSE:LEG) currently pays a quarterly dividend of $0.44 per share and has a dividend yield of 5.52%, as of October 16. The company has been raising its dividends consistently for the past 51 years.
In October, Truist maintained a Hold rating on Leggett & Platt, Incorporated (NYSE:LEG) with a $35 price target, expressing concerns about the company’s sales in the upcoming quarters.
At the end of Q2 2022, 12 hedge funds tracked by Insider Monkey owned stakes in Leggett & Platt, Incorporated (NYSE:LEG), worth over $48.3 million. In the previous quarter, 15 hedge funds had investments in the manufacturing company, with a total value of $102 million.
1. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Dividend Yield as of October 16: 5.78%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is widely known for its retail pharmacy chains, Walgreens and Boots. The holding company also specializes in the manufacturing and distribution of pharmaceutical products. In October, UBS reiterated its Neutral rating on the stock with a $37 price target, highlighting the maintenance of the company’s investment-grade credit rating.
On July 13, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) declared a 0.5% hike in its quarterly dividend to $0.48 per share. The company has been raising its dividends consistently for the past 41 years. As of October 16, the stock’s dividend yield came in at 5.78%.
Of the 895 hedge funds in Insider Monkey’s database, 40 funds hold stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in Q2 2022, compared with 38 in the previous quarter. These stakes have a total value of roughly $600 million. Camber Capital Management was one of the company’s leading stakeholders in Q2.
You can also take a look at 10 Best High-Dividend Stocks to Buy Now and 10 Best REIT Dividend Stocks
