Preparing for retirement is challenging, and a reliable cash flow stream is one of the most important things investors look for. That’s why dividend stocks are always in demand, as their assured income stream makes them some of the best investment instruments in the market. Dividend aristocrats make things even better by providing investors with increasing annual dividends. 

The companies in this category have increased their annual dividend payments for at least 25 consecutive years. These are excellent options for investors looking for a steady cash flow, equity exposure and potential for capital growth. So, in this article, we will look at three dividend aristocrats offering high yields.

Realty Income Corporation (O)

Realty Income Corporation (NYSE:O) is your stock if you like monthly dividends. O is a real estate investment trust that manages and acquires single-unit freestanding commercial properties. O leases its portfolio of properties to over 1,300 clients across 50 states in the United States, UK, Ireland, Spain, Italy and Puerto Rico. One of O’s unique selling points is its focus on a net lease portfolio of service-based tenants that covers up to 85 industries, making it a defensive position during economic downturns. 

Realty Income is a unique dividend company as it pays every month. It recently announced its 644th monthly dividend payment of $0.2565 per share, which translates to a $3.078 annualized dividend. This represents a 5.88% annual yield based on the current price.

According to O’s latest financials, net income available to common stockholders reached $233.5 million, growing 6.33% YoY from $219.60 million. Normalized funds from operations, or FFO, grew by 22.98%, from $600.90 million to $739.0 million. Same-store rental revenue grew by 2.2% while maintaining a rent recapture rate of 106.9% on re-leased properties. The company also boasts a strong occupancy rate that never fell below 96%. 

So, if you want to bulk up your portfolio income with a dividend aristocrat, O should be on your list of high-quality choices.

3M (MMM)

3M Company (NYSE:MMM) is famous for many things. One of them is for being a reliable dividend aristocrat with a 66-year streak of increasing dividend payouts. 

MMM is the largest maker and the founder of post-its and adhesive tapes. Its operations span various industries like health care, automotive and electronics. Its wide range of products makes it a very diversified company, perfect for investors looking to add a piece of exposure to different industries. MMM boasts one of the highest yields among the dividend aristocrats, with a quarterly dividend of $1.51 for Q1’24, translating to $6.04 full-year, or an annual dividend yield of 6.62% based on the current price. 

As for 3M’s financials, the company experienced a significant price decline last quarter as investors noticed sales slightly falling by 0.8% YoY. Full-year results also saw a significant $12.63 loss per share, mainly related to the CAE and PWS settlements—which are almost in the rear-view mirror.

Regarding 3M’s finances, 3M’s fourth-quarter earnings beat analyst estimates by 4.76%. In addition, the company is confident that it can deliver somewhere between $9.35 and $9.75 in EPS for 2024. This should please dividend growth investors as the outlook comfortably exceeds its projected dividend payout for FY’24.

Bottom line: if you’re on the fence and want an above-average income-producing stock at a bargain price, now might be the time to buy 3M.

Amcor PLC (AMCR)

Have you ever wondered how product packagings are made? If so, there’s no need to watch “How it’s made.” Let me introduce Amcor PLC (NYSE:AMCR). Amcor is a packaging manufacturer that operates through its Flexibles and Rigid packaging segments. The company recently announced a thermoforming production expansion to improve capacity and accommodate growth in North America. 

Now, let’s get some things out of the way. No company is immune to a slowdown. So, with that in mind, let’s look at the bad news first. According to the latest financials, in Q2’24, AMCR’s net sales dropped 10.74% from $3.64 billion to $3.25 billion. According to Ron Delia, this was caused by softening demands in the last quarter. However, the company managed to exceed EPS analyst estimates by 6.67%. 

Regarding FY’24 targets, the company is confident despite challenging market conditions. Amcor is already seeing improving volumes in January. Additionally, Amcor’s CEO pointed to lower interest expenses, potential improvements in their Russian business and proactive cost-reduction initiatives as catalysts for this fiscal year.

Dividend growth investors will note that AMCR pays a $0.50 annual dividend for FY’24, representing a ~5.53% annual yield based on current prices. 

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.