The 4 Highest-Yielding Dividend Aristocrats All Pay 5% and More

This article identifies four high-yielding Dividend Aristocrats—Amcor (6.20%), Realty Income (5.33%), Franklin Resources (5.54%), and Target (5.01%)—as attractive defensive investments for growth and income investors concerned about elevated market valuations. These S&P 500 companies have consistently increased dividends for over 25 years, yield above 5%, and are rated 'Buy' by leading Wall Street firms, offering reliable passive income and stability in a potentially volatile market environment.

Analysis

Investing The 4 Highest-Yielding Dividend Aristocrats All Pay 5% and More By Lee Jackson Oct 5, 2025 | Updated 1:45 PM ET This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. S&P 500 companies that have raised their dividends for shareholders for over 25 years are the kind of investments that passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. The Dividend Aristocrats comprise 69 companies that have increased their dividends for at least 25 consecutive years, a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue. 24/7 Wall St. Key Points: - The higher the stock market trades, the better the odds of a significant correction coming our way. - For investors in their 50s and early 60s, it makes sense to move toward safe dividend ideas. - The highest-yielding Dividend Aristocrats are the perfect ideas now for growth and income investors concerned about stock market valuations. - Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor) Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2025 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained the same level) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list: - Companies must be worth at least $3 billion for each quarterly rebalancing. - Average daily volume must be at least $5 million transactions for every trailing three-month period at every quarterly rebalancing date. - They must be a member of the S&P 500. We screened the Dividend Aristocrats for the highest-yielding companies and identified four that all pay investors at least a 5% dividend and are rated Buy by top Wall Street firms that we cover. Why do we cover the Dividend Aristocrats? The Dividend Aristocrats offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. Amcor This company offers an excellent investment opportunity, as its products are consistently in demand, and it pays a substantial 6.20% dividend. Amcor PLC (NYSE: AMCR) provides packaging solutions for consumer and healthcare products. The company develops sustainable packaging in flexible and rigid formats across multiple materials. Its Flexibles segment comprises operations that manufacture flexible and film packaging for the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment consists of operations that manufacture rigid containers for a broad range of predominantly beverage and food products, including: - Carbonated soft drinks - Water - Juices - Sports drinks - Milk-based beverages - Spirits and wine - Sauces - Dressings - Spreads and personal care items - Plastic caps for a wide variety of applications The company’s subsidiaries include Amcor Flexibles North America, Amcor UK Finance, and Amcor Finance (USA). Realty Income Realty Income Corp. (NYSE: O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors seeking a safer, contrarian investment for the remainder of 2025 and a rich 5.33% dividend. It provides stockholders with dependable monthly income. The company acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries. The company owns or holds interests in approximately 15,621 properties in: - All 50 United States - The United Kingdom - France - Germany - Ireland - Italy - Portugal - Spain With clients doing business in 89 industries, its property types include: retail, industrial, gaming, and others, such as agriculture and office. Its primary industry concentrations include: - Grocery stores - Convenience stores - Dollar stores - Drug stores - Home improvement stores - Restaurants - Quick service Stifel has a Buy rating with a $68 target price. Franklin Resources Franklin Resources Inc. (NYSE: BEN), more commonly known as Franklin Templeton, is one of the world’s largest investment management firms. This mutual fund powerhouse pays a safe 5.54% dividend and is among the most prominent global money managers. The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the United States, an advantage given the maturing U.S. market. Franklin Resources offers its products and services under these brands: - Franklin - Templeton - Franklin Mutual Series - Franklin Bissett - Fiduciary Trust - Darby - Balanced Equity Management - K2 - LibertyShares - Edinburgh Partners The 2023-2025 bull market has been a strong tailwind for the company; however, the stock has traded sideways recently, and the shares appear incredibly cheap. While withdrawals from baby boomers may be a concern, the path forward in 2025 and beyond also appears solid, as the shares have rebounded from their lows in April. Goldman Sachs has a Buy rating and a $29 target price. Target Target Corp. (NYSE: TGT) is an American retail corporation with a chain of discount department stores and hypermarkets, boasting a stellar 5.01% dividend yield. This company remains a solid and safe retail investment, offering a total return despite some rough public relations issues over the past few years. Target offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers a range of beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products. Target also provides: - Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service - Electronics, which includes video game hardware and software - Toys, entertainment, sporting goods, and luggage - Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath - Home Improvement - School/office supplies - Greeting cards, party supplies, and other seasonal merchandise In addition, the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com. The company suffered a “Bud Light” moment a few years after the disastrous merchandising of LGBTQ products, which struck a nerve among many shoppers. While not as severe as the beer giants’ conundrum, it was a significant negative that has seemingly subsided. Oppenheimer has an Outperform rating, accompanied by a $165 target price. Four Stocks That Yield 12% or Higher Are Passive Income Kings Get Ready To Retire (Sponsored) Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Here’s how it works: 1. Answer SmartAsset advisor match quiz 2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles. 3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future. The image featured for this article is © fizkes / Shutterstock.com Latest Podcast Episode AI Companies Entering A Game of Chips More Wild Than Westeros 62 min The analysis posits a defensive investment strategy centered on high-yield Dividend Aristocrats, presented as a prudent response to elevated equity market valuations. The core thesis is that companies with a history of increasing dividends for over 25 consecutive years offer reliability and a buffer against potential market corrections. The report specifically screens for and profiles four S&P 500 companies that meet this criterion and also offer a dividend yield exceeding 5%: Amcor (AMCR), Realty Income (O), Franklin Resources (BEN), and Target (TGT). Amcor is highlighted for its 6.20% yield and the consistent demand for its packaging solutions. Realty Income is presented as a stable income generator with a 5.33% yield, backed by a portfolio of 15,621 net-lease commercial properties and a Buy rating from Stifel. Franklin Resources, yielding 5.54%, is framed as a value opportunity, with its shares described as "incredibly cheap" despite a recent sideways trading pattern and a Buy rating from Goldman Sachs. Lastly, Target is positioned as a resilient retailer with a 5.01% yield and an Outperform rating from Oppenheimer, having seemingly moved past recent public relations challenges.

Key Decisions for Investors

• Investors concerned about high market valuations should consider reallocating a portion of their portfolio to defensive, high-yield dividend growth stocks as a potential hedge against volatility.
• For stable income, evaluate Amcor (AMCR) and Realty Income (O), which offer yields of 6.20% and 5.33% respectively, supported by non-discretionary business models and positive analyst ratings.
• Franklin Resources (BEN) may present a value-oriented opportunity given its 5.54% yield and 'cheap' valuation, however, investors should monitor fund flow data for risks related to client withdrawals, as noted in the article.
• While Target (TGT) offers an attractive 5.01% yield and is presented as a 'solid and safe' investment, one must remain aware of consumer sentiment risk, given the article's reference to a prior merchandising controversy.