5 Dividend Aristocrats With the Highest Yields in 2025: Income Kings for Your Portfolio

1. Franklin Resources, Inc. (BEN)

Sector: Financials (Asset Management)
Yield: 5.68%

Franklin Resources (Franklin Templeton) is a global investment manager with over $1.5 trillion in assets under management. It has a 25+ year record of raising dividends and currently offers one of the highest yields among aristocrats.

Pros:

• High, reliable yield and regular dividend growth.
• Attractive valuation (P/E under 10), global diversification.
• Resilient through market cycles.

Cons:

• Business is sensitive to market downturns and investor sentiment.
• Recent fund performance has lagged peers, which could pressure future growth.
• Asset management industry faces fee compression and competition.

2. Amcor Plc (AMCR)

Sector: Consumer Packaging
Yield: 5.55%

Amcor is a global leader in packaging, recently strengthened by its merger with Berry Global. It serves defensive sectors like food and healthcare, and is pivoting toward sustainable packaging solutions.

Pros:

• High and stable yield, paid quarterly.
• Benefits from defensive demand in food/medical sectors.
• Post-merger synergies and global leadership position.

Cons:

• Integration risks from the Berry Global merger.
• Cyclical exposure to consumer and industrial demand.
• High payout ratio (over 90%), which may limit dividend growth.

3. Realty Income Corp (O)

Sector: Real Estate Investment Trust (REIT)
Yield: 5.55%

Known as “The Monthly Dividend Company,” Realty Income owns over 15,000 net lease properties with high occupancy and investment-grade tenants. It has paid and raised monthly dividends since 1994.

Pros:

• Monthly dividends provide frequent income.
• Diversified, high-quality tenant base.
• Resilient business model with properties in essential retail and industrial sectors.

Cons:

• Sensitive to interest rate changes; higher rates can pressure REIT valuations and borrowing costs.
• Economic downturns may impact tenant stability.
• Growth is often reliant on acquisitions, which can be risky if overleveraged.

4. T. Rowe Price Group Inc (TROW)

Sector: Financials (Asset Management)
Yield: 5.32%

T. Rowe Price is a renowned investment manager with a long track record of dividend growth, offering a yield above 5% in 2025.

Pros:

• Strong balance sheet and conservative management.
• Consistent dividend growth history.
• Focus on long-term, goal-oriented investment strategies.

Cons:

• Revenue and earnings are market-sensitive.
• High minimums for some services, limiting access for small investors.
• Fee pressures and competition in the asset management industry.

5. Stanley Black & Decker Inc (SWK)

Sector: Industrials (Tools & Hardware)
Yield: 4.59%

SWK is a global leader in tools and storage, with a 58-year record of dividend increases. It’s currently undergoing a business transformation to improve efficiency and profitability.

Pros:

• Longest dividend growth streak in the group (58 years).
• Strong brands (DEWALT, CRAFTSMAN, STANLEY).
• Positioned to benefit from housing and infrastructure trends.

Cons:

• Ongoing restructuring and margin pressures.
• High payout ratio (over 130%), raising sustainability concerns.
• Dependent on cyclical construction and housing markets.

Pros & Cons of Investing in High-Yield Dividend Aristocrats

Pros:

• Reliable Income: These companies have a proven track record of paying and raising dividends, even during downturns.
• Stability: Large, established businesses with defensive qualities.
• Inflation Hedge: Dividend growth can help offset inflation over time.

Cons:

• Market Sensitivity: Financials and REITs are sensitive to economic cycles and interest rates.
• Payout Ratios: High yields sometimes signal high payout ratios, which may limit future dividend growth or sustainability.
• Growth Tradeoff: High yielders may offer lower capital appreciation compared to growth stocks.

Bottom Line

These top-yielding dividend aristocrats can anchor an income-focused portfolio, especially for investors seeking stability and regular cash flow. However, it’s crucial to assess each company’s fundamentals, payout sustainability, and sector risks before investing. Diversification across sectors and periodic portfolio reviews are recommended to balance yield with long-term growth potential.